Moving or relocating can be a simple process or an extremely complicated mess depending on the circumstances. If you’re moving due to job relocation, you may believe your employer is footing the bill. But how much is your employer really paying? Here is some helpful information on relocation costs and what you may or may not be able to expect.
The Free Part
What your employer will pay depends a lot on the size of the company. Large corporations are more likely to assist with moving expenses when you’re moving because of the job. Many large companies have relocation packages that may pay some or all of the following expenses.
- Services to help sell your old home or buy a new home
- Lease cancellation fees
- Shipping belongings (including vehicles)
- Temporary housing
- Mileage expenses or airfare
Smaller companies with fewer resources will likely pay less, even if it’s a work related expense.
The Surprise Costs
Whether you’re paying your own moving expenses or your employer is footing the bill, there always seem to be some unexpected moving costs. Here are the big 5 expenses to watch out for.
- Utility transfer fees: While some utility companies will gladly transfer your utilities for free, there are many that charge a nice hefty sum to do this for you. You may also find that your utility bills will go up depending on the location.
- Increase in insurance: Whether you use renter’s or homeowner’s insurance, you’ll need it wherever you go. However, you may find the premiums have increased if you’re forced to use a different company, live farther away from the fire department, or are moving to riskier area.
- Additional packing material fees: Although most moving companies include this fee in their quote, some sneak it in as an additional fee with the final bill.
- Moving insurance: Moving can be risky. Whether you’re moving your items yourself, or hiring a professional mover, accidents can happen. Insurance protects the value of your personal belongings and helps ensure they get to their new location safely.
- House hunting: You may not be lucky enough to find your dream house the first time you visit a new area. The expense of traveling to look at homes can get quite high, especially if you’re traveling a long distance.
Let Uncle Sam Help
Many moving expenses can be deducted on your income tax if you meet eligibility requirements. While this won’t help provide you with the money needed at the time of the move, it does help recoup some of the moving expenses back.
