Employers are under pressure to reduce relocation costs.  Too often the biggest area for reducing costs is overlooked – that being the potential for achieving savings on rents.

Assignees left to find homes without professional help are mostly unsuccessful in getting the asking rents down very much.  That’s hardly surprising; they don’t know the local market.  What’s more surprising though, is that many relocation companies don’t try very hard to get asking rents down for their clients!

Looking at the destination assignments into UK that Saunders 1865 has handled, just in the last month, we have secured an average monthly rent reduction per home of $560.  Over the course of a 2-year lease that’s a total saving for our corporate clients of $13,440 per home – and that’s before factoring in the cost of any tax protection for the assignee.

That was the average monthly saving.  The largest saving we made last month was $1734 per month ($41,587) on just one assignee!  This was an actual reduction in rent being paid (as opposed to negotiation downward of an asking rent) to the landlord, achieved on negotiating the renewal of the lease for our client.

So, it clearly pays big dividends to retain a tough destination service provider to negotiate your rents.  Landlords are represented by rental agents; Employers and Employees should also be represented effectively.  It’s the best way to achieve major costs savings on all your new leases and lease renewals.

When HR achieves savings like that for their organization, their contribution to the bottom-line is demonstrable.

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