Moving For Work: Your Checklist And Guide When Relocating

Receiving a job offer, especially one that takes you to a new place, is an exciting opportunity. If you’re considering moving for work, there are a lot of details and planning involved that can help make your relocation smooth.

Let’s go over how job relocation works, what to expect in a relocation package and how to decide if moving for a job is right for you.

How Does Job Relocation Work?

A chance to relocate for work is an exciting opportunity but comes with a lot of preparation. In addition to their company benefits, many companies will offer a relocation package to help make a job offer more attractive. These packages are an extra perk to help new or current employees move from one place to another for work.

In a typical relocation package, an employer may include packing and mover services, assistance in selling or buying a house, temporary housing, a flexible start date, travel expenses and storage solutions.

Relocation assistance can come in a few different structures. Some of the most common types of employee relocation packages include:

• Lump-sum payment: The employee would receive one large payment to be used for their moving expenses.
• Reimbursements or allowances: The employee would be reimbursed for any of their moving costs up to a certain amount.
• Third-party support: The employer may often hire an outside moving company to help with the relocation. That way, the employee is not expected to pay out of pocket.

The first part of the process is making sure you understand what is included in your relocation package. And, depending on the current terms, preparing for negotiations. Take the time to review your package and consider your needs to help make the transition as smooth as possible.

What To Consider Before Relocating For A Job

Moving, in general, can be stressful. When you add in a new job, it can start to feel overwhelming. Here are a few things to consider, both personally and professionally, when deciding if relocating for a job is the right move for you.

Calculate The New Cost Of Living

Depending on where you live now, there could be a significant difference in the cost of living where your new job is. Affordability varies depending on where you are in the country. Cities tend to be more expensive than rural or suburban areas.

You’ll want to research and calculate food and grocery costs, rent or housing costs, transportation costs, health insurance and other miscellaneous goods and services like events and activities in the area to budget accordingly.

As you compare where you are now to where you will be, make sure you have enough in your savings as you adjust to a new cost of living and lifestyle. Your employer may be able to provide you with additional information about the area and expected cost of living.

Discuss The Impact On Your Family

It’s important to discuss the pros and cons with your family. If you have a partner, you’ll want to discuss what this means for their job and your relationship. Are you going to do long distance? Will they be able to work remotely? Are they able to transfer offices within the same company? Or will they have to jump into a new job hunt?

If you have children, you’ll also want to consider their new school. Make sure you do your research to find a good school district, and decide if you want them in public or private school. A quality school system can help them have a smoother transition into their new home as well.

Your Checklist For Preparing For Relocation

In addition to your general moving checklist, there are a few extra tasks to complete to prepare you for the exciting new job relocation.

Visit Your New Office

Before your first official day, you may find it helpful to visit your new office and start building up your new network. Not only will meeting coworkers ease some of those first-day butterflies, but it also gives you a chance to ask about the area. You can ask for recommendations and familiarize yourself with popular neighborhoods, restaurants and activities.

While you're visiting the new office, you’ll also want to pay attention to what your commute looks like. Is it faster to take the train instead of driving? Or would you prefer to be in a neighborhood where you’re close enough to walk to work? Before you buy a house or sign a lease, make sure you map out your commute and parking situation.

Find The Right Real Estate Agent

You want to give yourself enough time to sell your current home and buy a new home or find an apartment. Working with the right real estate agent can help you find a place to live and, if needed, guide you through the home selling process.

Ask your employer, new colleagues or relocation company for referrals to real estate agents. It can be a huge stress relief and comfort to work with an agent who is both familiar with and knowledgeable of the market you’re relocating to.

Move In Before The First Day Of Work

Once you’ve found a place to live, it’s important to give yourself enough time to settle in. Even if you’re familiar with the area, living there can be very different than visiting for fun. It takes time to adjust to a new place but with an open mind and the right planning, this could be the much-needed start to an exciting new adventure. Be sure to give yourself enough time to unpack and feel settled before your first day of work.

What To Do After Relocating

Once you’ve made the big move, there are a couple of final things you’ll want to mark off your to-do list:

• Update your mailing address. Not only will you want to forward your mail from your old address to your new address, but you’ll also want to cancel or transfer any subscriptions and services to your new home.
• Update your tax information. If you’ve moved to a new state, you’ll need to update your information with the IRS for tax reasons.

Moving For Work FAQs

There’s a lot to reflect on when considering a job relocation. Let’s go over some of the frequently asked questions about moving for work.

What are the benefits of moving for work?

It’s important to note that everyone’s career path is different. Some of the most common reasons and benefits of relocating for work are the long-term advancement opportunities and the chance to earn more money. But for others, a job relocation may allow them to move closer to family or provide the chance to switch industries.

How much should a job offer for relocation?

In 2023, the average relocation cost for renters was $19,306 and $72,627 for homeowners. These packages can vary depending on whether the relocator is a new hire or a current employee and how far the employee has to move to relocate.

Are relocation packages taxable?

Yes, relocation packages are taxable. Relocation benefits are considered taxable income for employees under the Tax Cuts and Jobs Act (TCJA). The relocation tax rate depends on location, salary and filing status. However, some companies may offer a relocation gross-up, which means the employer will give you enough money upfront to cover the taxed amount.

The Bottom Line

Moving to a new city for work can often open new doors to an exciting career path and both personal and professional growth. To ease the stress of moving for work, make sure you review your relocation package and negotiate the terms to meet your needs.

Get connected with Rocket Mortgage^® Relocation Home Loan Experts and get expert guidance through the relocation process.