How does relocation assistance work?

Question

I'm moving from the east coast to the west coast. I don't have more than a cargo van full of belongings. If I'm offered $5000 for instance, and only use $2000, what happens to the other $3000? Is it mine? Or is the package expressly for the use of the move?

Answer 1

Every company will have a different relocation package. I have bought and sold 14 homes since 1981. I have had many packages including home buyouts and including here's a night at a hotel PERIOD.

I would set up a call (now that you have a written offer or before) with the relocation specialist and ask about the details of the relocation package. If they offer you $5,000 in a lump sum relocation, you can use the money however you want. (this lumpsum will likely be taxed depending on how it is categorized by the company.

Also remember that your costs won't just include the cargo van. They include gas, overnight lodging, meals, lodging at your new location temporary till you move into your new place, deposits for utilities, pet transport, deposits for new apt?. There are all kinds of misc costs associated with moving in your new location i.e. new fridge?, new bed, new items to go in the fridge and so on.....

A lump sum package is for the move but you usually get the money and that's the end of that. They save because decades ago, the packages were much more lucrative. (3 months temporary housing was common for example).

Be sure to get everything in writing before you accept. Ask questions because each company will be different. Consider ALL your costs associated with relocation.....

Answer 2

Most companies would probably only reimburse you for actual expenses. But relo can include more than the direct moving of your belongings. You have expenses getting YOU, and your car to the new location... might well stay in a motel for awhile before you find and move into your new place to live.... and that place might need some furnishings and decorating... you might find more creative ways of getting your relo to cover startup expenses in your new place. Deposits on rent, or closing costs if you buy a house? Utility deposits? Any gap payments for health insurance between jobs?

Doesn't hurt to ask the new employer, though, if you spend less than the allowance do you get to keep it? It would be more generous than most, but it's possible they might.

Good luck on your move.

Answer 3

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Answer 4

Generally- they will ask for your actual bills and only pay for what you spend.
They need back up to expenses.