Cost-Saving Strategies for Managing Temporary Housing in Global Mobility

As one of the highest costs of a mobility program, temporary accommodations are a regular topic of discussion for most global mobility teams, cost center owners, and relocation management companies (RMCs). There is always significant pressure on mobility teams to accurately project temporary living costs at the outset of a relocation, and on providers to manage cost control. 

We’ll discuss how to establish cost parameters around temporary accommodations, what to consider during a policy review, and why some property offerings may seem like a cost-effective option on the surface, but could result in higher costs in the long run.

Five Ways to Establish Temporary Accommodations Cost Parameters

There are five ways a company can establish and manage parameters around the cost of temporary accommodations in their mobility programs. These include: 

1. Fixing Rates: Fixing housing rates in certain or all locations can provide certainty for budgeting purposes and may achieve savings against the market during the year. However, this approach can restrict an organization’s market options, as not all property agents and providers will want to rent at a fixed price. Depending on the time of the year, this may also eliminate some options, as agents will prefer to rent at the highest price possible for the greatest return. 
2. Capping Rates: By determining a capped market rate for local markets, or particular properties with defined attributes, companies will have a better handle on budgeting but also build flexibility into their programs. 
3. Spotting Rates: With no budget rates, caps, or fixed amounts, ‘spot rates’ rely on the provider to offer any properties with the right availability and the required attributes in the search location. This can result in a vast range of property types being offered, from studio apartments to five-star housing, so to achieve parity and fairness of choice to all employees, a clear scope should be defined with an organization’s service provider before any properties are offered to relocating employees. 
4. Setting Budgets: Setting budgets based on information from reputable housing data providers allows for fairly accurate cost projections and gives the provider a guideline for the price point. Searching for properties based on budget will return varied attributes and, while this may result in more choices, the choices might not be in line with employee expectations. 
5. Lump Sum Payments:Considerations and Cautions. In some regions, companies offer a lump sum instead of full temporary housing support. While this is a good way to ensure the policy component remains within budget, asking an employee to source, book and pay for their own accommodations may not result in a positive experience and does not align with duty of care best practices. The most common method for budgeting is to use housing cost tables from data providers or accommodation partners. However, accurate budgeting requires a deeper look at property attributes that influence cost, including:

• Star rating and number of bedrooms
• Location, access to public transport, and safety features
• Refurbishment age, cleaning frequency, and on-site amenities
• Family and pet-friendliness

Organizations must define which features are standard to ensure budgets align with real market availability. While more than 80% of global bookings are estimated to be corporate, market rates remain beyond corporate control. Local property values are influenced by factors like seasonal demand, major events (e.g., the Olympics), sudden group moves, or global disruptions like COVID-19. Because of this volatility, budgets should be reviewed every 6-12 months to stay aligned with current market conditions and avoid unexpected cost overruns.

Reviewing Your Temporary Accommodations Offering

For companies that would like to improve upon their temporary accommodations provision, a program review is highly recommended in two areas: temporary accommodations as a provision including market and budget reviews, and policy positioning to enhance cost control and employee experience.

Temporary Accommodations as a Provision 

The following five considerations can prove to be useful when assessing and redefining a company’s temporary accommodations provisions for best results: 

	1. Review budgets if they have not been examined in the last three years, allowing time to review market conditions in all applicable destination locations and the preferred attributes for each areas’ property inventory.
	2. Set expectations and communicate with business stakeholders that budgets are meant to be a guide; they are not absolute, as local market and real-time events can impact property costs beyond anyone’s control.
	3. Define the purpose of temporary accommodations and communicate that purpose clearly to relocating employees so they understand that the accommodations are temporary; setting clear rules and parameters around the purpose of accommodations will go a long way in achieving this.
	4. Understand key differences between serviced apartments and properties that are listed on popular vacation/holiday rental websites such as Airbnb, Booking.com, or HomeAway.  Serviced apartments offer professional management, including 24/7 maintenance, security, cleanliness standards, pest control, and cancellation policies. Vacation rentals (e.g., Airbnb) often lack these safeguards and consistency. Serviced properties provide essential documentation like landlord letters for immigration. Though more costly, serviced apartments ensure employee safety, comfort, and compliance, which are critical to supporting successful, low-stress relocations.
	5. Set expectations for both the business and employees, since housing inclusions, exclusions, conditions, and standards will all differ from location to location.

Policy: Enhancing Cost Control and Employee Experience

When exploring cost-control opportunities in mobility programs, reviewing the positioning of temporary accommodations policies is essential. Clear communication that temporary housing is a short-term solution, typically not exceeding one month, can significantly enhance the employee experience and manage expectations effectively.

Temporary accommodations should be positioned as a transitional solution, not a permanent residence. Framing them as a soft landing that supports a smooth entry into a company-sponsored relocation helps set the stage for a productive assignment. This approach encourages collaboration and enables employees to focus on securing a long-term residence that aligns with both their needs and company objectives.

Best Practices for Managing Temporary Housing Costs and Experience Set clear parameters early: Define expectations for both short- and long-term housing from the outset of the relocation. Simplify choices: Limit employee housing options to the three lowest-cost choices that meet predefined quality and location criteria. This avoids decision fatigue and streamlines the selection process. Communicate policy boundaries: Prevent unnecessary or inflated expenses by specifying what types of accommodations are acceptable.

Risks of Non-Vetted Housing Options

As mentioned earlier, platforms like Airbnb may appear cost-effective, they often do not offer the same standards or safeguards as vetted corporate housing options, introducing risks such as:

• Lack of compliance with immigration documentation (e.g., no official proof of residence)
• Insufficient property management and cleanliness standards
• Inadequate cancellation policies and maintenance support
• Absence of pest control measures, including inspections for bed bugs
  

These issues can lead to unexpected costs, administrative burdens, and compliance violations—ultimately costing more than initially anticipated. Importantly, a subpar temporary housing experience can distract employees from their assignments, elevate stress, negatively impact perceptions of your mobility program, and in extreme cases, contribute to talent attrition.

Smart policy design, proactive communication, and thoughtful option curation are essential in managing temporary accommodation costs while delivering a seamless, human-centered relocation experience. Sirva supports organizations in aligning mobility policies with strategic goals to ensure cost efficiency, compliance, and employee satisfaction across every move.

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Want to learn more about how Sirva can help you manage the costs of your temporary accommodations? Contact us at concierge@sirva.com or reach out to your Sirva representative.

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