1.32.13. Relocation Services Program

(1) The IRS provides relocation services through a contract under the government's Relocation Services Program. Using home sale assistance services, such as rental property management, pre-counseling services, and home marketing assistance, offered by the relocation services contractor is not an entitlement and must be approved by the Associate CFO for Financial Management.

(2) Under the Relocation Services Program, the government pays a fee for services provided by the relocation contract. The type of service used and the property selling price determine the amount of the fee the IRS pays.

(3) See IRM 1.32.13.17, Exhibit I, Summary of Services, for a list of services available through the relocation services contractor.

(4) See IRM 1.32.13.18, Exhibit II, Time-line for Key Relocation Actions, for a list of actions that occur during the sale of an employee’s home.

(5) See IRM 1.32.13.19, Exhibit III, Difference Between a Mortgage Appraisal and a Relocation Appraisal, for a list of differences in the two types of appraisals.

(1) 5 U.S. Code (USC) Section 5724(c), Relocation Services

(2) Title 41, Code of Federal Regulations (CFR), Chapters 300-304, Federal Travel Regulation (FTR)

(1) This section provides responsibilities for the following:

1. CFO

2. Associate CFO for Financial Management

3. Travel Management

4. Travel Policy and Review

5. Relocating employee

6. Business unit

7. CFO relocation coordinator

8. CFO relocation technician

(1) Internal controls are established to ensure the use of the Relocation Services Program is managed effectively.

(2) Program reports: The IRS completes the following reports:

1. Aging unliquidated relocation obligations incurred under the Relocation Services Program.

2. Open relocation voucher and invoice report.

3. General Services Administration (GSA) Relocation Data Call Report.

(3) In accordance with 5 USC 5707 (c), Regulations and Reports, all agencies that spend more than $5 million on travel and relocation must provide an annual report to GSA by November 30. The GSA provides the required data and report format including data elements for using the Relocation Services Program.

(4) Program effectiveness: This IRM provides policy guidance on using the Relocation Services Program. The CFO Travel Operations office completes the following to ensure the program is managed effectively:

1. Reviews 100% of invoices for accuracy and compliance with prompt pay guidelines.

2. Surveys customers quarterly, soliciting feedback from relocating employees on the relocation services contract.

(1) Travel Operations reviews for effectiveness by:

1. Conducting a weekly review of all Relocation Services Program invoices to ensure compliance with prompt payment processing guidelines.

2. Performing a quarterly review of relocation services invoices for timely receipt, processing and de-obligating excess amounts.

3. Reviewing relocation reimbursements and reconciling payments annually to ensure tax withholding and taxable income are recorded properly.

(2) The chart below describes the internal controls in place for using the Relocation Services Program:

(1) The following terms and definitions apply to this program.

1. Acceptance period - A fixed time period an employee has to accept an offer, beginning when the employee verbally receives the Guaranteed Home Sale (GHS) offer and lasting until the date the employee accepts the offer or until it expires, whichever is sooner. This is typically 60 days from the date the employee received the GHS offer.

2. Adjusted sales price - The indicated price of a comparable property after adjustments have been made to account for differences between comparable and subject properties.

3. Amend from zero sale - A sale that occurs when the employee receives an acceptable bona fide offer from a qualified buyer prior to completion of the appraisal process by the relocation services contractor.

4. Amended value sale - A sale that occurs when the employee receives an acceptable bona fide offer from a qualified buyer after the relocation services contractor has completed the appraisal process. The contractor amends its offer to match the qualified buyer's offer. If the sale to the outside buyer falls through, the GHS offer to the employee remains valid.

5. Anticipated sales price - The price at which a property would likely sell, if exposed to the market for a reasonable period of time in as is condition, where there is cash payment or its equivalent and where both parties are well informed and acting in what they consider their best interests.

6. Appraisal - An estimate (opinion) of value prepared by an independent professional who is familiar with all the factors that may affect the sale.

7. Appraisal specialist - A relocation services contract employee who is responsible for ordering and reviewing the property’s appraisals.

8. Appraised value - A sales contract extended to an employee to buy the employee's property based on the average of a specific number of appraisals.

9. As is condition - The condition of the property at the time of the Broker’s Market Analysis (BMA) and/or appraisal.

10. CFO relocation coordinator - The primary employee that provides relocation benefit counseling to relocating employees.

11. Bona fide offer - An offer that is not contingent upon the sale of the potential buyer’s home and that can reasonably be expected to go to settlement at its original terms and conditions from an able and willing buyer within 60 days of executing the offer agreement. The offer will not contain any contingencies except those providing that the purchaser must qualify for financing under terms or conditions generally prevailing in the marketplace at the time the offer is made and those providing that the seller must convey a marketable and insurable title.

12. Broker’s Market Analysis (BMA) - A real estate broker’s written market analysis of recent comparable sales and listings with suggestions for marketing strategies.

13. Carrying costs - Recurring costs applicable to the property including, but not limited to, mortgage interest, property taxes and any outstanding liens or encumbrances.

14. Comparable - A property, which is equivalent to the subject property, which is used as the basis to establish appraisal value. Recent sales and competitive listings are two examples.

15. Contracting officer's representative (COR) - An individual designated and authorized in writing by the contracting officer to perform specific technical or administrative functions.

16. Equity - The value of ownership built up in the employee’s residence or property that represents the current market value of the residence less any remaining mortgage payments. The equity reflects any other deductions that are applicable, such as non-reimbursable items under the Federal Travel Regulations (FTR).

17. Equity advance - When the relocation services contractor provides the equity due in advance of closing, usually for the purpose of closing on another home. Equity is calculated by subtracting the balance due on the mortgage and/or other liens from the appraised value of the home and prorating mortgage interest and taxes to the expected acceptance date or vacate date, whichever is later.

18. Exclusion clause - A provision placed in a listing agreement in which the broker acknowledges that they do not earn a commission if the home is sold to the relocation company.

19. Guaranteed home sale (GHS) - The offer by the relocation services contractor to purchase an employee's principal residence. The offer amount is typically based on the average of two or more appraisals with a fixed acceptance period.

20. Home that cannot be financed - A home that does not meet applicable industry criteria for a mortgage loan, as determined by a reputable institutional lender, such as a bank, savings and loan, or mortgage company authorized to conduct business in the area. Criteria for mortgage loans are not limited to particular types of loans, such as Federal Housing Administration, Veterans Administration or loans eligible for repurchase under guidelines established by other organizations.

21. Home that is not insurable - A home that does not meet applicable industry criteria for the issuance of a standard homeowners’ insurance policy as determined by a reputable insurance company authorized to conduct business in the area or a home in which the employee does not hold insurable title, as determined by a reputable abstract or title company authorized to conduct business in the area.

22. Inspection - A professional examination of a home’s major components which may include, but are not limited to, exterior, foundation, framing, plumbing, septic, electrical system, heating, air conditioning, fireplace, kitchen, bathroom, roofing and interior.

23. Legal description - A description of land recognized by law; a description by which property can be definitively located by reference to government surveys or approved recorded maps.

24. Listing agreement - A contract between a seller and broker authorizing the broker to perform services involving the seller’s property or to secure persons to buy, lease or rent property.

25. Marketing time - The average list-to-sell time for residential property in the area, calculated according to industry standards as published by the applicable Multiple Listing Service (MLS) or other appropriate organization.

26. Multiple Listing Service (MLS) - A marketing database set up by a group of cooperating real estate brokers to provide accurate and structured data about properties for sale and for rent.

27. Property management - Services provided by the relocation services contractor that cover renting and maintaining property at the old post of duty.

28. Property management counselor - The individual assigned by the relocation services contractor who works with the employee and the rental agent throughout the term that the home is in the program.

29. Re-evaluation process - An opportunity afforded to the employee to contest the GHS offer by providing additional objective information. The additional information will be evaluated by the original appraisers that could result in a higher, equal or lower GHS offer.

30. Relocation appraisal - The established process by which the anticipated sale price of a residential housing unit, using the market data approach to value, for a relocating employee’s residence. The purpose of this appraisal is to establish the anticipated sales price for a transferee's residence.

31. Relocation services contractor - A third-party supplier under contract with an agency to assist a transferred employee in relocating to the new official station.

32. Relocation services counselor - The individual designated by the relocation services contractor to serve as the primary liaison between the relocation services contractor and the relocating employee.

33. Sales comparison analysis - An assessment that compares a property's characteristics with those of comparable properties that have recently sold in similar transactions.

34. Title - All interest held by the employee in the home. For purposes of the home sale portion of the relocation services contract, title means interest in real estate that is marketable and insurable under applicable state law.

35. Worldwide Employee Relocation Council (WERC) - Trade association representing the relocation industry. The Worldwide Employee Relocation Council (WERC) creates policy guidelines and provides a forum for continuing education on all aspects of relocation.

(1) The following acronyms apply to this program.

(1) IRM 1.32.12, IRS Relocation Travel Guide, provides information on the policies and procedures for employees who relocate in the interest of the government.

(1) Within one business day of referral by the CFO relocation coordinator, the relocation services contractor will provide the employee with a list of qualified independent appraisers with whom the relocation services contractor regularly does business in the area of the old residence. The employee must select three appraisers in order of preference. The relocation services contractor will order two independent appraisals based on the selection. The employee may choose from the relocation services contractor’s list, or the employee may choose appraisers who are not on the list. If the employee selects an appraiser that is not on the list, the relocation services contractor will verify the appraiser’s experience, qualifications and availability to complete the appraisals with the required time limits.

(2) Appraisers on the list are qualified local appraisers who have demonstrated a high degree of professionalism in researching and evaluating information to determine the most probable sales price.

(3) All appraisers must have professional designation or certified through nationally recognized organizations such as the American Institute of Real Estate Appraisers or the Society of Real Estate Appraisers. The appraisers follow the guidelines of the WERC to assure independence and impartiality. The requirements for an appraiser:

1. The appraiser has no financial interest in the property.

2. The appraiser has not appraised the property within the previous six months.

3. The appraiser derives their primary source of income from the appraisal of single-family homes rather than brokerage or commercial appraising.

4. The appraiser is not designated as the listing real estate broker.

(4) All contact with an appraiser shall be in writing and transmitted via fax, e-mail or U.S. mail. The appraiser provides copies of all correspondence to the relocation services contractor and, upon request, to Travel Policy and Review.

(1) The relocation services contractor orders appraisals with the first two selected appraisers. These appraisers will call the employee to schedule appointments, which will be executed within 10 business days, if possible.

(2) The relocation services contractor provides the appraisers with written instructions regarding the appraisal assignment. These instructions cover time frames for a verbal and written report, parameters for the appraisal based on the IRS contract and billing information. In addition to the contract parameters, the appraisers follow the WERC guidelines, as outlined on page one of each appraiser’s report.

(3) The appraiser is responsible for estimating the anticipated sales price for a relocating employee’s residence. The anticipated sales price may or may not be the same as the market value of a property. See IRM 1.32.13.19, Exhibit III, Differences Between Mortgage and Relocation Appraisals, for a chart which outlines the distinctions between these types of appraisals. The appraiser is not evaluating what it would cost to construct the residence (cost approach) or for what it would rent (income approach).

(4) The appraiser considers the following factors when preparing the report:

1. Overall market conditions, including economic

2. Supply and demand of available housing

3. Available financing and terms

4. Property assessments

5. Zoning

6. School district

(5) More specific to the home, the independent appraiser takes into consideration the following:

1. Neighborhood

2. Proximity to services and schools

3. Location

4. Interior and exterior condition

5. Decorating

6. Functional appeal and other factors listed in the WERC appraisal guidelines

7. Home size

(6) The appraiser uses comparable sales data that is contiguous to the property. The comparable selected by the appraiser must be in the same neighborhood, development, subdivision or complex. If an appraiser, in their opinion, cannot identify an acceptable comparable within those parameters, they are required to notify the relocation services contractor prior to completing the appraisal. The relocation services counselor will discuss this with the employee.

(7) The appraiser can use foreclosures, distress sales or auctions as comparable should this situation arise.

(8) The appraiser compares the home and features to recently sold comparable homes. Starting with the sales price of each comparable, the appraiser adjusts up or down on each applicable factor and then arrives at an adjusted sales price for each comparable. Using this data, as well as considering the listing data, the appraiser uses their judgment to determine the value that reflects the price upon which a typical seller and buyer are most likely to agree.

(1) The relocation services contractor property specialist reviews the completed appraisal reports for mathematical errors or errors of fact. Errors of fact include material mistakes regarding items such as dates and prices of comparable sales, measurements of properties, and other objective data.

(2) If the two appraisals differ by more than 5%, the relocation services contractor arranges for a third appraisal. See IRM 1.32.13.11.4, Guaranteed Home Sale Offer, for additional information.

(1) Upon completion of the appraisal process, the relocation services contractor may or may not make a GHS offer to purchase the property. The relocation services contractor must make every effort to make the offer within 30 days from date of the selection of appraisers. There are reasons why this time-period is not always sufficient (for example, if a third appraisal is required).

(2) The relocation services contractor calculates the offer amount by averaging the two appraisals. If the relocation services contractor obtains a third appraisal, the contractor calculates the offer amount by averaging the two closest appraisals.

(3) The relocation services contractor delivers the GHS offer by phone and email within two business days. The written offer includes copies of all appraisal and inspection documents. The employee must continue to market the residence until the relocation services contractor acquires the home.

(4) The employee has 60 days from the telephone offer to accept or reject the GHS offer. The relocation services contractor and the Contracting Officer’s Representative can mutually agree to extend the acceptance period for an additional 15 calendar days.

(5) If the employee is currently renting the home, the tenant must vacate the property prior to the acceptance of the offer.

(6) If the employee rejects the offer, the employee may be able to reenter the home sale assistance program. However, the IRS requires the employee to repay the IRS for all relocation-related costs, such as for appraisals or inspection fees, before the employee can reenter the program.

(7) If an employee cancels services or allows the offer to expire, the IRS pays the relocation services contractor for any justifiable direct costs incurred, such as for appraisals and inspection fees. If the employee decides to sell the residence independently for direct reimbursement, copies of the appraisal and inspection documents will be provided to the employee from the relocation services contractor. The employee may use the documents to complete the independent sale of the property, providing that the time for using the documents has not expired. If an employee elects not to use the documents and incurs additional expenses for the same or similar services, this will be at the employee’s expense. If the time for using the documents has expired, the employee may claim reimbursement for these or similar expenses through the direct reimbursement method.

(8) If the GHS offer is contingent on repairs, the employee has 30 days from the receipt of the offer to have the repairs completed by a qualified contractor. The relocation services contractor will inform the employee of the required repairs. The employee is solely responsible for ensuring that the home is brought up to standards set by the applicable law, ordinance or code and providing all repair receipts to the relocation services contractor. See IRM 1.32.13.11.5, Inspection and Repairs, for additional information.

(1) The relocation services contractor may order an inspection of the property even before the appraisal process begins and later if recommended by the appraisers.

(2) The IRS is not liable for any part of the cost of the repairs or re-inspection and may not be billed for such, either directly or indirectly.

(3) The inspections are primarily to determine if the property meets eligibility requirements of the contract and if the property is in conformity with federal, state, county, or local customs and/or laws.

(4) Depending on the circumstances, some examples of inspections ordered for the property include, but are not limited to, a structural inspection, a roof inspection, a well inspection, inspections of the property's various systems such as heating, electrical, plumbing and septic. Some inspections are to detect the presence of various substances including, but not limited to, termites, radon gas, urea formaldehyde foam insulation, asbestos insulation and fire retardant treated plywood.

(5) As the property owner, if the township or municipality requires an occupancy inspection, the employee must arrange with the appropriate local agency to inspect the property for any repairs and re-inspections to pass title.

(6) If an inspection report reveals that repairs are necessary, the relocation services contractor will contact the employee directly to discuss which repairs the employee must complete.

(7) The relocation services contractor can obtain estimates of costs from established, reputable repair service firms or the employee can obtain repair estimates on their own and bear all costs associated with the repairs and re-inspection.

(8) The relocation services counselor will contact the employee if an inspection reveals a condition that makes the home no longer eligible for the GHS program. The employee will be given the opportunity to correct the condition. The employee has five calendar days to elect one of the following:

1. Delay receipt of the GHS offer for up to 30 days of receiving verbal notice from the relocation services contractor of the ineligible condition and correct the condition within this 30 day period. The relocation services contractor will provide the employee with estimated repair costs.

2. Receive the GHS offer contingent upon completion of the repairs by a qualified repair contractor. The contingency requires the completion of repairs within 30 days of receipt of the GHS offer.

(9) The employee may personally complete the repairs or hire someone else to complete them. Repairs completed by the employee, or by someone else on the employee’s behalf, are subject to re-inspection to determine if they have been satisfactorily completed. The employee must provide the relocation services contractor with copies of all paid receipts for completed repairs.

(1) If an employee disagrees with the amount offered by the relocation services contractor for purchase of the residence, the employee may request in writing that the relocation services contractor reconsider the offer.

(2) The employee should file the written request for reconsideration as soon as possible after carefully reviewing the written appraisal reports, but not later than 30 days after the relocation services contractor made the offer.

(3) The relocation services contractor will provide the employee with written instructions for submitting a reconsideration request with the GHS offer.

(4) The CFO relocation coordinator or Travel Policy and Review cannot adjust an appraisal value or a GHS offer. The CFO relocation coordinator or Travel Policy and Review cannot initiate the reconsideration process on the employee’s behalf.

(5) Since the relocation services contractor must make an offer based solely on appraisals by independent appraisers, the success of a request for reconsideration depends on whether or not the employee’s request convinces the appraisers to change the appraised value.

(6) The employee should focus on identifying any factual errors in the appraisal reports by identifying each specific error, with an explanation why the item is in error. The appraisers will reconsider the value based on the correct information.

(7) The employee may also submit information on additional comparable properties that have sold within the last six months or as recently as those sales used by the appraiser.

(8) The employee should never contact the appraiser directly to try to obtain a change in value or answers to questions regarding the appraisal.

(9) The relocation services counselor explains the appraisers' decisions to the employee and then sends the employee a copy of the written appraisers' explanations. If one or both appraisers agree with the reconsideration and increase the appraised value(s), the employee will receive a new contract of sale reflecting the higher offer. If, upon review, one or both appraisers determine a lower appraisal value or that no change in value is warranted, the GHS offer and contract of sale will not change.

(10) The reconsideration process is completed prior to the expiration of the 60 day acceptance period. An extension of the acceptance period of up to 15 calendar days may be granted to complete the reconsideration process; however, the employee must have complied with the time-period for submission of the request for reconsideration.

(1) The vacate date is established when the employee accepts the GHS offer and is no later than 45 days from the date of acceptance.

(2) After accepting the relocation services contractor's offer, the employee is responsible for:

1. Maintaining the property in substantially the same condition as at the time of appraisal.

2. Paying all maintenance, utility, insurance, mortgage and related costs for the property until the employee vacates.

3. Leaving the property in broom-clean condition when they vacate. A representative of the contractor may inspect the property within three calendar days of vacating to identify damage. All costs incurred by the relocation services contractor in connection with removing debris will be billed back to the employee.

(3) Upon vacating, employees are relieved of all further maintenance and carrying costs on the property. If, after vacating the residence, they receive a bill for taxes or any other expenses for which they are no longer responsible, they should notify the relocation services contractor immediately.

(4) The employee is responsible for canceling the homeowners' insurance and all utility services as of the vacate date or acquisition date, whichever is later.

(5) When the relocation services contractor acquires the property, a deed transferring the title to the contractor is completed.

(1) Upon acquiring the property, the relocation services contractor pays off the mortgage within 31 days of acquisition. In most cases, the relocation services contractor pays off all mortgages or other obligations secured by the residence, except as required by a higher offer transaction. The relocation services contractor reserves the right to review this provision in the event interest rates rise substantially and result in an adverse cost effect for the relocation services contractor and the IRS. If this should occur, the relocation services contractor will notify the employee in advance.

(2) The relocation services contractor will protect the employee’s credit rating through its prompt payment of the mortgage. If the relocation services contractor makes a delinquent mortgage payment, the relocation services contractor bears the cost of any late charges. In addition, the relocation services contractor promptly responds to any adverse credit reports with written mortgage payment indemnification notices. If the employee makes any delinquent mortgage payments, then the employee must bear the cost of any late charges.

(3) Should the offer involve the assumption of the existing mortgage on the property, the employee must sign a written release of liability that protects the relocation services contractor, should the purchaser of the property default in any way on the assumption loan at any time in the future. The relocation services contractor will not indemnify the employee if the purchaser defaults. The ultimate responsibility for the assumption loan lies with the employee. The employee remains responsible for the mortgage (in the event of default by the outside buyer) as with any other assumption.

(1) Upon the employee’s acceptance of the GHS offer, the relocation services contractor prepares a statement of equity, prorating all debits and credits applicable to the property through the vacating date.

(2) When the relocation services contractor calculates the equity in the home, it uses the FTR to determine reimbursable expenses and does not reduce the employee’s equity in the home by the amount of any items reimbursable under the FTR.

(3) The relocation services contractor disburses up to 100% of the equity in the home, normally within five business days after the relocation services contractor receives and signs the employee’s contract of sale (the acquisition date) if the employee has vacated the property. If the employee has not vacated the property, the employee receives 90% of the equity.

(4) The relocation services contractor sends the equity payment via electronic funds transfer or wire transfer, whichever method the employee prefers.

(5) Final equity is reduced if any trash, debris, firewood, paint or chemicals remain in the house after the employee vacates the premises.

(6) If the outstanding mortgage balance and any other encumbrances on the property exceed the GHS offer, the employee must remit the difference to the relocation services contractor via electronic funds transfer or wire transfer at the time the employee accepts the GHS offer. The relocation services contractor estimates the deficit at the time it makes the purchase offer. The relocation services contractor sends any refund upon final computation of the equity within five business days of the acquisition.

(7) The relocation services contractor will send the employee’s Form 1099S, Proceeds From Real Estate Transactions, for the calendar year that includes the date of closing for a real estate transaction, as required by the Internal Revenue Code, Return Required in the Case of Real Estate Transactions, section 6045(e). If the employee receives Form 1099S, Proceeds From Real Estate Transactions, for any other reason, the employee should contact the CFO relocation coordinator immediately.

(1) During the 60 day GHS offer period, the relocation services contractor may advance up to 100% of the available equity in the home (as established by the GHS), for the purpose of closing on a residence at the new location. The relocation services counselor confirms the signed purchase agreement on the new home by either requesting a copy of it or by contacting the real estate agent.

(1) An equity deficit occurs when the total amount of the outstanding mortgage balance, property taxes and homeowner’s association dues exceed the offer amount.

(2) In order to process acquisition of the property, a relocation services counselor will request a certified check for the equity deficit to accompany the acceptance paperwork.

(3) The employee must remit any deficit amount to the relocation services contractor within five business days of the acquisition of the property. The relocation services contractor will not complete the acquisition of the property until it receives the deficit funds owed.

(1) This sale may occur when the employee receives an acceptable bona fide offer from an outside buyer prior to the completion of the appraisal process conducted through the relocation services contractor.

(2) Since the relocation services contractor has not received the appraisals, it obtains a broker’s market analysis to benchmark the reasonableness of the outside offer. At this point, the employee cannot enter into a contract or sign any agreement document with the outside buyer.

(1) This sale may occur when the employee receives an acceptable bona fide offer from an outside buyer after the relocation services contractor has completed the appraisal process. The relocation services contractor may have also tendered the employee a GHS offer.

(2) If the employee is successful in finding an independent buyer willing to pay a net purchase price equal to or greater than the GHS offer, then the employee should not sign any documents (including counter-offers) or accept earnest money. The relocation services contractor cannot work with the sale if the employee has done either.

(3) The relocation services contractor will ask the employee and their agent to submit information relative to the purchase offer and the buyer's qualifications.

(4) The relocation services counselor reviews the offer:

1. To determine if it is bona fide and if the buyer is qualified based on the written information submitted. The counselor uses the GHS offer as a benchmark to evaluate the reasonableness of the outside offer price.

2. For any expenses or concessions that are deemed non-reimbursable under the Federal Travel Regulation. A few examples of non-reimbursable items include repairs as a result of a buyer’s inspection, points, homeowner’s warranty, real estate commission in excess of the standard for the area, decorating allowance and buyer closing cost allowance.

(5) If the offer involves the assumption of the existing mortgage on the property, the employee is required to sign a release of liability that protects the relocation services contractor should the purchaser of the property default in any way on the assumption loan at any time in the future. The ultimate responsibility of the assumption loan would lie with the employee.

(6) Once the relocation services contractor receives and reviews all the required documents and any non-allowable contingencies have been removed, the relocation services counselor will instruct the employee to amend the GHS offer to the value of the independent offer and complete acquisition of the property.

(1) The relocation services contractor contacts a local agent to meet with the employee at the property to evaluate the rental value. The local agent determines rental value by reviewing recent rentals and current available listings along with property and general market conditions. These factors, viewed together, allow the agent to formulate an estimated rental value. The local agent assists with the rental marketing of the home through the applicable MLS or local newspapers.

(1) An employee’s homeowner's insurance policy may not allow for vacancy periods greater than 30 or 60 days. The relocation services contractor offers owner/landlord/tenant coverage that would cover any vacancy period.

(1) The relocation services contractor works to secure a qualified tenant and runs a credit check on each prospective tenant to ensure that the tenant is credit worthy and can make the monthly payments.

(2) If the relocation services contractor cannot find suitable tenants within a reasonable period (usually within two months), the employee may withdraw from the agreement.

(1) The relocation services contractor negotiates the lease on the employee’s behalf. The contractor provides a copy of the standard lease to the employee in advance to review. Both the employee and the relocation services contractor approve any major changes to the lease. Once the terms of the lease have been agreed upon and the lease signed, the relocation services contractor’s property management counselor forwards a copy to the employee. Please note that state and local regulations may require modification or provisions to be added to some aspects of the lease.

(2) The relocation services contractor then administers the lease on the employee’s behalf, including:

1. Collecting rent

2. Communicating with the tenant

3. Notifying the employee of any delinquency problems

(3) The relocation services contractor acts as a single point of contact for repairs, maintenance or requests by the tenant.

(1) The property management counselor provides the employee with a quarterly statement of receipts and disbursements that reflect the rental income received and any mortgage, insurance, utility, tax or repair payments the relocation services contractor makes on the employee’s behalf. The statement reflects income received and expenses incurred and paid for the period, as well as any credit or deficit balance (the amount owed to the employee by relocation services or the amount, if any, owed by the employee to the relocation services contractor). If a balance is due to the employee, the property management counselor will deposit it in the employee’s account. If a balance is due from the employee, the relocation services contractor expects prompt payment.

(1) Before the tenants move in, the property management counselor contacts the employee to arrange the first property inspection. After the employee’s belongings have been removed, the inspector will photograph the home and complete a room-by-room report of the property’s condition. During this first inspection, the inspector records the:

1. Condition of the home before it is occupied by tenants.

2. Inventory of items the employee will leave in the property such as appliances and window treatments.

3. Need for further repairs, cleaning, or cosmetic work to improve the home's marketability.

(2) The property management counselor coordinates four property inspections per year to ensure that the home is in good condition. These inspections alternate between complete (interior and exterior) and exterior-only. During an inspection, the property management counselor and/or broker record the condition of the property in detail, using written reports and photographs as necessary. If needed, the property management counselor and/or broker conduct additional inspections to determine if major repairs are required or to check completed repairs.

(3) In an emergency, the property management counselor and broker immediately inspect the home and contact the employee as soon as an assessment of the condition is prepared. The property management counselor forwards to the employee a full report of all inspections, along with the recommendations, comments and photographs.

(4) When a lease ends, the property management counselor and broker arrange for an inspection at the time the tenant vacates to determine if a full or partial return of the tenant’s security deposit is appropriate.

(5) Upon the employee’s request, the property management counselor and inspector can coordinate repairs and cleaning and issue a final statement to the employee.

(1) The relocation services contractor provides the employee a home finding kit and refers the employee to a rental agency.

(2) Depending on the locale, the rental agent or real estate agent showing rental properties may charge the employee a fee. The relocation services contractor notifies the employee if there is a charge, prior to placing the employee with that agency. This fee is a non-reimbursable item, which means the employee is responsible for the payment directly to the rental agency should they use the service.

(1) As with the home renters’ assistance program, the relocation services contractor provides the employee a home finding kit along with a list of homes in the new area.

(2) The relocation services contractor identifies a qualified real estate agent to provide the employee with an orientation to the area and help the employee locate communities and neighborhoods for the employee to visit during the house-hunting trip.

(1) The relocation services contractor assigns a loan specialist to assist the employee in understanding the types and amounts of loans available in the new area, as well as referring the employee to local sources.

(2) A national mortgage lender in the new area will assist the employee in the search of market rate financing.

(3) The relocation services contractor provides general information regarding the real estate market, advice on planning a home search, referral to national mortgage lenders and research on family requirements (including schools, child care, community life) for major cities when available.