Microsoft Relocation Assistance vs Lump Sum
Got an offer from the Redmond office. The relocation options are: A lump sum of $18,500 grossed up for taxes or Full relocation assistance (flights, temp housing, boxing-shipping-storing-unboxing stuff, a relocation allowance of $2000 etc) I don't have a family so I don't feel like the whole shipping of things will count for me so the lump sum looks like a better deal. But then again the temp housing is tempting especially because I'll be moving across continents and it's not possible to properly find a place to live while not in WA. Which option would you pick and why? Thaaanks! :)
Do the maths with how much you need for relocation and see if you would have any money left! Not rocket since.
Thanks. I'm trying to do my math and weigh the pros and cons. Hence the post. :)
$18,500 gross will probably end up around $9000 post-tax. Do you think relocating will cost you $9000?
Gross up means the company takes the hit for the tax so you actually get $18,500.
Oh I totally misread that. Seems like a no-brainer to take the lump sum then.
Lump sum works fine for most of the people. But you have to figure out the stay part.
Any ideas on how to go about the stay part? Are there any temp housing providers near the redmond area at a reasonable cost? Or is it easier to look for a short term lease on an apartment?
Extended stay America is close to campus and walkable. 156th has many brand new apartments coming up. Use maps to check out campus and surrounding areas.
Thanks! 😊 Are these temp housing options? Or just normal apartments with the longer lease options?
Just use the lump sum, stay at an airbnb for the first 2 weeks, and you'll get a nice >10k starting bonus
This is what I'm heavily considering 👌 Thanks!
You can come out slightly ahead with the lump sum but then you have to deal with the hassle of moving. It isn't worth the $$$. You get a free apartment for a whole 2 months so you can explorenthe area to figurenout where you want to live
Thing is, I currently live with my parents so I'm not exactly moving with my things. Probably a couple of suitcases and a carry on. That's why I am considering the lump sum instead. But the 2 month period to figure out which places I like makes a good case for the other option. 😊 If I could find some temp housing for say a month or so for a reasonable price, then lump sum would be the obvious choice.
If you don't own anything then yeah, lump sum is the way to go. It cost me $40k to move a 3br house, but we had a TON of stuff plus we shipped 2 cars.
Ask your coworkers or locals for advise on apartments. There isn't much to see if others vouch for it and you are alone. Narrow down on a couple of places, and sign a lease in advance or on the day you move. Any hit you take on an apartment is only when you move out. You will have to show bank balance worth the full lease/ rent in absence of any US credit history. Your offer letter helps. Take the cash and bank it!
Wow. Hadn't even thought about the credit history bit. Thanks for the heads up! :)
Do this. With rents so high, very few apartments will be sloppy. Ask around and take this off your checklist!
Level/Role and TC please!
SWE. I guess the lowest level since its an entry level job straight out of uni. TC 189k.
Is this a good TC BTW?
Lump sum all day. Temporary housing will probably be lousy and stressful because you’ll need to go apartment hunting in Seattle, Bellevue, Redmond, wherever. Take a trip out to WA for the weekend and evaluate some potential places to live ASAP. Then you’ve got somewhere to land and be ready. You can pay for the rest of the operation on your own and be as thrifty or fancy as you need. Plus $18.5K is great for relo.
Might be a little tricky to fly to WA for a weekend just to house hunt since I live in a completely different continent. Maybe it'd be easier to come one week or so before start date and use that time to settle down... But thanks for the feedback! :)
If it’s just you, I’d go with the lump sum. It’s more work to coordinate your own move but you’ll make out $ wise even if you opt to stay in a hotel / Airbnb for a week +. Moving yourself should also motivate you to get rid of stuff you don’t need.
This is exactly what I was thinking.. But I am not sure how long it would take to find a place once in the hotel/Airbnb. Wouldn't want to stay in one too long. Wouldn't want to settle for a place too fast and get stuck with a 1 year lease in a neighbourhood I'll end up hating.. 😭 (The temp housing they're offering is 2 months)
When I relocated, I scheduled 5 apartment tours for the day I arrived. Stayed one night in a hotel. Signed a lease and moved in the next morning.