Moving with a Relocation Package – Relocation Tips Video Series from the Southern California Relocation Dude
Video #3 in my Relocation Tips Video Series is about the things you should know if you are moving and using a corporate relocation package.
Here are the prior articles in this series in case you missed them:
Video #2 – Getting Pre-Approved
Video #1 – Relocation Expenses
Introduction to Relocation Tips Video Series
If you are moving to Carlsbad (or anywhere) and using a corporate relocation package (and therefore a relocation company in most cases) there are some important things to know:
1. Clearly understand all the details of the relocation package the company is offering and have it in writing. If it isn't in writing then it probably isn't binding. You should not rely on company promises that they will cover this item, or pay you X for that.
2. The relocation package may or may not be negotiable in terms of what is covered, for how long, and for how much. It doesn’t hurt to ask, especially if you are in a position to negotiate this with a job offer.
3. The Human Resources Department will likely be involved. Check with HR on any questions.
4. If there is a Relocation Company involved find out who the contact person will be and make sure you talk to them and understand how the relocation process will work and who to call whenever there are problems. Can you reach them in an emergency, at night, or over the weekend? Some employers are not fully aware of the requirements the Relocation Company has, and you may be told one thing by your company and another by the Relocation firm. Get everything clarified and in writing, especially any changes to the terms and conditions that are agreed on.
5. Understand the following key components of the relocation package: moving costs; process for selecting the moving company; insurance for the move; house hunting trips (how long and what is covered); transportation, lodging (including temporary housing), and food en route to your new home; what, if any, costs are covered for the sale and/or purchase of a home (e.g., any closing costs?)
6. Understand the reimbursement process, requirements, and limitations, plus what happens if you should leave the company within a certain period of time (i.e., is there a repayment clause)
7. Check with your accountant to understand the tax implications for certain aspects of relocation packages and money you may receive, particularly if it counts as 1040 income. And find out what you can deduct on your taxes for your relocation (e.g., mileage, lodging) and what receipts are required
8. Keep all receipts and records. Track all mileage, especially if you drive to your new location or for a house hunting trip. Your company will probably require receipts and you will need them for tax purposes. Keep copies of any receipts you need to pass along to your company and/or the Relocation firm. Keep copies of all contracts, receipts, agreements or anything else that you sign.
9. If the relocation is complex, and costly, you might want to have an attorney review it. It does become a contractual arrangement between you and the company and you want to understand your legal rights.
And THIS is particularly important - find out if you can select the REALTOR to help sell your current home, and/or buy a new one, or if that is a decision of the relocation company. You need to know this before you get started with any decision making so you don’t start working with a particular agent only to find out they cannot help you per the Relocation Company.
Stay tuned for the next post and video in this series on finding the right REALTOR to help you in your home search.
Please don't hesitate to give me at call at (760) 840-1360 so we can discuss your personal relocation situation and needs!
Have any questions? Don’t hesitate to ask – I’ve done this a bunch of times myself.
