Temporary housing is a foundational element of many mobility programs, offering flexibility when employees can’t move directly into permanent housing. Understanding policy timeframes, housing options, and cost drivers helps organizations design programs that balance employee support with cost control.
Coordinating the different parts of a relocation is often one of the biggest challenges employees encounter. The desired goal is a move straight from the old location housing to the new permanent housing. But reality often gets in the way. Perhaps the new job start date is…yesterday. The employee’s family may need to remain in the old location due to job requirements or to finish the school year. Often, finances are the issue – the old home has to sell, or the employee needs the rental security deposit in order to secure housing in the new location. Companies can help alleviate the stress and uncertainty that can come with these timing issues by providing a temporary housing benefit, ensuring employees have a comfortable place to stay in the new location while finalizing their move.
Temporary Housing Policy
The most common mobility policy timeframes for a temporary housing benefit are up to 60 days for current homeowners and up to 30 days for current renters. Executives and employees in higher level tiered policies may be eligible for 90-120 days of temporary housing. Most companies do not cover meals while in temporary housing, especially if kitchen facilities are available. Some companies will provide a small, one-time set-up allowance of $100-$300 so the employee can stock up on essentials.
Longer Stays
Corporate Apartments: For stays of 30 days or more, furnished corporate apartments or extended-stay suite hotels are the most common temporary housing provided to relocating employees. This type of housing provides the space and furnishings employees will need during this transition period. Depending on the location, there may be a limited option of apartments.
Understanding Pricing: Corporate housing is priced using a nightly rate, much like hotels. Rates vary based on local factors such as location, supply, demand and seasonality. Major events such as conferences or sporting events (think World Cup) will impact pricing and availability.
Lease Notice Requirements: Thirty-day notice of intent to vacate may be required, so it is common to have to give notice when signing the lease for a 30-day stay.
Short-Term Stays
Hotels: For stays of just a few days or less than 30 days, hotels are usually the best option due to booking flexibility.
Vacation Rentals: Vacation rentals may be a possibility for short-term stays, but there is an element of risk associated with this type of housing. If an employee experiences problems with the rental, they might find it challenging to resolve them with the owner or vacation rental company.
Moving with Fido or Kitty
Employees who relocate with pets often face extra difficulties when securing temporary accommodations. Some providers limit the size and type of pets that are allowed, and may also limit the number of pets in the unit. These limitations will affect the pricing and available housing choices.
Best Practices
Authorize relocations promptly and simplify internal authorization processes to boost efficiency. Temporary housing needs can then be identified and planned for early in the process. Advance booking helps keep costs contained and provides the employee with more choices, especially when availability may be limited.
Cornerstone’s Temporary Housing Solutions
Cornerstone has established relationships with preferred temporary housing providers. We identify temporary housing options based on the needs of your relocating employee and according to your policy and procedures. We review and analyze a wide variety of options and then assist with lease negotiations, monthly payments, cancellations, and funding of security deposits, if needed. Additionally, we can offer turnkey solutions such as furniture rental (for unfurnished dwellings), basic groceries, and concierge services, as needed.
Summary
Providing a temporary housing benefit during relocation:
•Reduces stress when timing or logistics prevent the employee from an immediate move into permanent housing.
•Enhances the employee experience by providing critical support and flexibility.
•Improves employee productivity without disrupting or delaying job start dates.
Cornerstone’s network of temporary housing providers provides our clients with cost-effective temporary lodging solutions.