Relocating to a new city for work can be exciting. However, that excitement coupled with the chaos that often accompanies moving from one place to another can cause people to forget things or make mistakes that may haunt them later on. Here are three common mistakes people make when relocating for work and how to avoid them.
Not Negotiating Your Relocation Package
When companies relocate employees, the company will often give the employees money to make the move. Most of the time, this comes in the form of a relocation package that may include things like cash, temporary housing, and even moving services. Unfortunately, many people accept the package as is and then twist themselves into pretzels trying to gather together the resources they need to move. One of the best things you can do to help ease the burden of relocating is to negotiate your relocation package.
Some things you may want to get your employer to cover if it's not already included in the relocation package are:
- Location-Scouting Trips – You need some place to stay in your new city, but it can be hard to figure out where you want to live just by looking at a map. Taking one or two trips to your target city can provide better insight into your destination and get the ball rolling on finding a permanent home.
- Storage for Belonging – Even with preparations, it may take a while to locate and get into a permanent home. Therefore, it's a good idea to negotiate extra cash for storing your belongings until you can transition from temporary to permanent housing.
- Language and Culture Training – If you're moving overseas, learning the language and culture of your destination country is a must-do if you want to live comfortably there. While you can learn a lot using the Internet, having your company spring for at least a language course can help ease the transition.
Trying to Rent Your Home Long Distance
People who already own homes may think the best thing to do when they relocate is to rent their houses. This way, they can earn extra cash and have a place to live should they decide to return to their old cities.
At first, this may seem like a good idea, and it probably is if you're only relocating for a year or two. However, it is probably not the best option when you consider all the work required to manage a rental unit. You have to find tenants to live in the space, organize repairs when needed, and make sure property taxes and other home-related expenses are paid. This can be very challenging to do in between working at your job and taking care of your family. Additionally, you still have to pay the mortgage when the home sits vacant, and that may put a strain on your finances.
If you have friends or family members who are willing to rent and take care of the home while you're away, then becoming a long-distance landlord may be a good idea. Likewise, if you can afford to hire a property-management company to take care of the day-to-day issues associated with renting a home. Otherwise, it's probably best to sell your house and just buy a new one if you happen to return to the city at a later date.
Not Taking Advantage of Tax Write-Offs
Moving may mean a pay raise or a better position in the company, but it may also lead to a hefty tax write-off. The IRS lets people deduct some moving expenses if they relocate for work. Some eligible expenses include travel costs (excluding meals), the cost of transporting your possessions, expenses related to connecting or disconnecting utilities, and the cost of shipping vehicles or pets to the new location.
To be eligible, you must move a minimum of 50 miles away from your old home, and you must work full-time for 39 weeks in the 12-month period following your move. There may more requirements and exceptions for taking advantage of this tax rebate, and you can find out more about them by visiting the IRS website.
For help with relocating to a new city for work, contact a corporate moving company in your area or click here for more.Share