Category: Domestic Relocation Challenges

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Growth in rental market poses challenge to talent mobility

Phoenix Arizona city skyline at dusk, showing a beautiful city destination for companies considering a 2020 Phoenix Relocation

Rental Market Workforce Mobility Challenges

Rental fees are increasing, thanks in part to a tightening rental property market, increasing the challenges for rental market workforce mobility as renters are facing higher prices while wage raises grow at a tepid pace. Domestic relocation may be impacted as a result, posing a challenge for transferees as they look to take on a new location. Companies can provide relocated talent with help before a move, but as rent in most markets continues to mature, transferees are likely to see a larger portion of their income spent toward rent.

Rent, Number of Renters Increasing

Rent is growing in a number of major markets.
Rent is growing in a number of major markets.

According to new industry research, the number of domestic renters grew in 2013. More specifically, a recent study conducted by the National Low Income Housing Coalition found that last year there were 42.4 million renters in the U.S., which represented slight growth from the 41.9 million in 2012. High housing costs continue to plague the modern-day renter as the rental property market tries to combat historically low vacancy rates. Renters made up 36.5 percent of all households in 2013, a nearly 1.5 percent increase from 2012 and close to 4 percent more than in 2006.

Major domestic metropolitan areas have experienced moderate to steep inclines in rent per household in recent years as well. The New York Times, citing real estate website Zillow, recently pointed out that 90 cities in the U.S. had a median rent that was more than 30 percent of the median gross income when factoring out utility fees. Individuals moving within domestic borders will likely have to dedicate a greater portion of their salary toward housing costs. As a result, there is less room for peripheral moving expenses, which can add up quickly.

Further research shows rent will likely increase in the near future as well. Citing research firm Capital Economics, The Times noted rent could rise as much as 4 percent this year, which is a modest incline from the 2.8 percent growth in 2013. However, as inflation in certain markets is annually at 1 percent or higher, rent increases could even outpace Capital Economics’ projections. For instance, rent in Miami costs, on average, 43 percent of the typical household income. In Chicago, that figure rose 10 percent in one year as renters give way to 31 percent of their incomes on average.

Brought to you by Global Mobility Solutions, a trusted partner in global talent management.

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GMS Partners With Move For Hunger

SCOTTSDALE, Ariz., Oct. 14, 2014 – Corporate relocation provider Global Mobility Solutions (https://gmsmobility.com/) is the newest partner of 501(c)3 nonprofit organization Move For Hunger (http://moveforhunger.org/). GMS will call upon its extensive supplier network to further the mission of ending hunger in the US and Canada. In securing this important partnership, GMS worked directly with Move For Hunger’s esteemed founder Adam Lowy.

A much-respected member of the philanthropic community, Lowy has had a remarkable and positive impact on the world. He founded Move For Hunger in 2009, and the organization’s growth over the last five years has been tremendous. In 2011, he was a finalist at the VH1 Do Something awards. This year, Forbes named Lowy to its prestigious 30 Under 30 list of the “brightest stars” to watch in the business world.

“GMS is proud to partner with Move For Hunger. The goal of feeding those who are hungry is certainly one our organization can stand behind,” commented Ann Knapp, Transportation Services Director at GMS. “Through our strategic partnerships with our extraordinary van line agent partners, we’ll be working with our customers to help put food on the tables of those in the greatest need across the US and Canada. Hunger continues to be a worldwide problem, and we’re honored to have the opportunity to take an active role in helping those that need it.”

Move For Hunger has taken an innovative approach to a serious but typically unseen problem. Today, the organization works with over 600 moving companies in 47 states and throughout Canada and has delivered more than 3.5 million meals to local food banks across North America. Moving companies donate their time and labor to pack and transport nonperishable food items left by their customers. Receiving food banks then sort and distribute the items to area residents in need.

“We’re thrilled to have Global Mobility Solutions on board as a partner,” remarked Lowy. “Every new partner contributes to our success. All of us at Move For Hunger believe that with the help of GMS and its built-in network of moving companies, we’ll soon be making an even bigger dent in food insecurity across Canada and the US.” The facts about hunger in America tell a sobering story. One in six people and one in five children do not get enough to eat. Food insecurity does not discriminate; it’s not only the homeless and poor who struggle to find their next meal. Older Americans on fixed incomes and middle class Americans recently laid off from work are increasingly faced with tough choices, such as keeping the lights on or paying the mortgage versus eating three meals a day.

Even temporary hunger can have long-term consequences. Chronic and sometimes serious illnesses, mental health issues and obesity are all possible outcomes of food insecurity. In children, the effects of malnutrition during the growing years can be devastating and often linger into adulthood. For many of those experiencing food insecurity, but especially children, the summer months are particularly challenging. Young people are out of school, the holiday food drives have yet to begin, and the pleasant weather sometimes makes people forget about problems like hunger.

However, summer happens to be the busiest time of year for moving companies, so Move For Hunger’s unique solution has been a huge boost for food banks. The partnership with Move For Hunger affirms GMS’s commitment to demonstrating impactful, responsible corporate citizenship.

Additionally, you can shop, put tickets in your cart, and checkout for raffle tickets to raise money for charity.


About Global Mobility Solutions

Founded in 1987, Global Mobility Solutions is a global corporate relocation services company that specializes in workforce mobility. The company’s corporate services include global assignment management, domestic relocation management and a range of pre-decision solutions. Global Mobility Solutions is a winner of the 2014 HRO Today Customer Satisfaction Survey.

Contact:
Thomas Belnap, Marketing Manager
800-617-1904 ext. 8832
[email protected]

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CFPB rule changes may affect relocating employees

Pensive businessman signs a document at the office

CFPB Rule Changes – New regulations set forth by the Consumer Finance Protection Bureau are scheduled to take effect next year, which will likely impact the corporate relocation process going forward. The financial information that relocating employees have to provide to lenders is changing.

Employee relocation is a complex process, which is why an expert relocation management company proves to be beneficial in moving talent. A major aspect of an employee relocation is the sale or purchase of a home, and up until this point, the real estate aspect of a relocation has been relatively static.

The Real Estate Settlement Procedures Act of 1974 and the Truth in Lending Act of 1968 laid the groundwork for buying and selling residential real estate in that both pieces of legislation required substantial  financial information from the buyer. This included a detailed advanced disclosure of estimated and actual mortgage lender, title and other settlement costs to borrowers, according to the U.S. Department of Housing and Urban Development’s website. In essence, the legislation made it easier to obtain mortgage financing.

Changes are wide-sweeping

Employee relocation services may be impacted by the new CFPB regulations.
Employee relocation services may be impacted by the new CFPB regulations.

In the past, a number of different parties all worked together to provide a seamless and comfortable moving experience for the moving employee. More specifically, the third-party relocation service, the employee’s company, insurance underwriters, attorneys and real estate agents all pitched in to create a comfortable moving experience for relocating employees. While it may seem unrelated that the CFPB – an agency that was created to help prevent another financial meltdown in 2010 after the economic recession was in full swing – has laid out new regulations set to take place in April 2015, corporate relocation will be impacted nonetheless. Since so many parties are involved in making the employee transition smooth, almost everyone is affected in some way.

In April 2012, the CFB Bulletin 2012-03 established  new regulations that placed responsibility on the lender to protect consumers who obtained loans to purchase real estate property. The rules were put in place to protect the consumer. Yet, even though banks and lenders are now responsible for financial oversight and protection, the trickle-down affect corporate relocation efforts as well. Although most relocation companies interact with relocated employees prior to the purchase of a property, transferees may likely use a portion of an allocated allowance to apply for a mortgage, which is where the reach of the CFPB comes into play.

Relocation services impacted
More recently, the CFPB announced a rule that eliminated the good faith estimate, the HUD-1, or the former settlement sheet where all seller and buyer costs and proceeds are calculated and shown. The new closing disclosure form must be provided to the buyer three days before closing, or consummation, as the CFPB now calls it. After this window, only limited items can change, according to relocation services industry trade group Worldwide ERC.

Worldwide ERC pointed out that since most relocation service providers now require a HUD-1 at least two days before closing to obtain client approval, the process may be backed up to five days once the new regulations take effect. These added regulations point to the increased complexities surrounding employee relocation, and highlight the need for partnering with an expert in global talent management.

Brought to you by Global Mobility Solutions, a trusted partner in global talent management.

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