A umzugsvergilch is a financial contribution made by an employer to help cover the
costs of relocating an employee to a new location for work. Relocation fees can vary
in size and amount based on factors like distance of the move, home value or
housing market and other factors specific to each company. Relocation fees can also
be combined with other relocation benefits to provide a total package. The most
common types of relocation packages include funding for packing services, moving
services, home sale assistance and temporary housing if necessary. Some packages
may also include a miscellaneous allowance for expenses such as pet registration or
While some people don’t want to relocate for a job, others find it essential for the
career they are pursuing. This is especially true for senior managers and executives
who need to be able to travel to different locations as part of their work, or for
salespeople who need to meet clients in various cities. These people are often
rewarded with a generous relocation package in order to compensate them for the
added stress of uprooting themselves and their family and starting over in a new
The most common relocation costs are typically packing and moving services, home
sale assistance, temporary housing if required and transportation. These are usually
provided in the form of a fixed amount to be used for each of these services, or as a
lump sum payment that can then be applied toward whichever service is needed.
Other common items in a relocation package can include air travel costs before,
during and after the relocation, as well as temporary storage for household goods.
Depending on the type of relocation package, it can also contain help with finding
schooling for children, securing employment for spouses and other family members,
and mortgage-related costs such as real estate commissions, home inspections and
closing costs. These are particularly important if the employee is selling their old
home and buying a new one at the same time, which can be an expensive
proposition in many parts of the country.
One expense that is often overlooked when calculating a relocation package is the
cost of break fees and other charges that are associated with terminating a lease
early or breaking an existing agreement. Some employers will cover these costs so
that employees are able to quickly and easily terminate a lease contract and begin
house hunting in the new location.
Other hidden expenses can include mortgage application and underwriting fees,
attorney fees and inspection costs. These fees can add up to thousands of dollars
and are commonly included in a relocation package for employees who need to buy
a new home as part of their move.
While it is impossible to predict every hidden cost that comes with a relocation,
these are some of the most common and can add up quickly. The key to a successful
relocation is budgeting and understanding which costs are most important in your
situation. This way, you can prioritize which ones to spend the most money on and
which ones to leave for last.