The opportunity for relocation with work is often presented quickly and without much planning time. There is a large range of considerations that need to be carefully thought through to ensure the move is viable for you and your family. When evaluating a job offer, there are three major aspects to consider before saying yes: Salary, Learning and Development, and Cost. We’re going to focus on the cost equation today.
Relocation costs will vary depending on the distance, the amount of belongings, and whether you hire professional movers or handle the move yourself. Besides the direct cost of moving, there are several phantom costs to be prepared for. Here are some common expenses to consider.
Cost Of Actually Moving
Hire Professional Movers
Hiring a moving company can be convenient but expensive. My last move was within the same apartment complex, took them 6 hours and cost me $1400 before tip. The move before that with the same company took 3-4 hours and cost me $600.
There are some pros and cons to using professional movers, my biggest concern is the inconsistency of the staff hired by the company. We felt taken advantage of on the most recent move, and won’t be using them again. Next time, I’ll be speaking up quicker and doing more due diligence before hiring a company.
DIY Moving
Renting a moving truck and doing it yourself can be cheaper but involves more physical labor and time. Costs include truck rental, gas, and potential storage of belongings or if it’s a longer move hotel stays.
In my early twenties, this was always my go-to. Rent a Uhaul and grab whatever family was willing to travel and help. These days we are older, and not all our furniture is light IKEA build-it-yourself. Going this route, I would hire day laborers to help with the packing and unpacking of the truck. Price it carefully though, because it can creep up to the “professional movers” cost quickly.
Sell Everything and Start Over
Through pictures of everything you own online marked at a reasonable price, and sell everything that is not sentimental. Be ruthless. Only take what can fit into your vehicles.
This could work for you if you determine the cost of moving (DIY or Professionally) is higher than the cost of replacing your belongings with items of similar quality. After my various 6 moves in 10 years, this might be the route I take next!
Gas, Food, and Hotel Stays During The Move
Transportation
Consider all costs of transportation: Will you be flying or driving? If you are driving, think about the time cost as well, how many hours is it? How many miles? How many times will you need to fill up your tank?
Personally, all of my moves have involved me driving to the new location. When doing so I always evaluate the long-term cost of adding more mileage to our vehicles. If we make another move (only a matter of time) we have one vehicle that is over 200K miles and still running. But because of the age and high miles, I’ll be ponying up the money to have it shipped as insurance so that we won’t have to replace it once we move. Which would be even more of an expense.
Think about ALL of the costs associated with this.
Additional Accommodations
Will you need a hotel to split the trip? Do you have pets that will need to stay with you? Again, add this to your list of expenses. It’s better to pay for a hotel for one night than to get into a wreck on the highway because you were too cheap to get some rest.
Road Trip Meals
Eating out during the move can also contribute to travel expenses. Don’t just think about the 3 squares (breakfast, lunch, and dinner).
When you stop for gas are you grabbing snacks and drinks? Gum or mints? Put a buffer into your budget to allow room for these “luxuries” that make this type of trip easier for all.
Temporary Housing
If you need temporary housing while searching for a permanent home, this can be a significant expense. Short-term rentals, extended-stay hotels, or Airbnb accommodations can provide solutions but will be costly.
Utility Connection Fees
Setting up new utilities such as electricity, gas, water, internet, and cable can incur connection fees. Additionally, you may need to pay for the disconnection of utilities at your old residence.
These little fees add up and are like flies buzzing around you those first few days. Look up the cost in the area you are considering and be prepared to be annoyed.
Storage Fees
If there is a gap between your move-out and move-in dates, you may need to store your belongings. Storage unit costs can vary based on the size and duration of the rental.
If you go the DIY moving route, U-haul offers one month of free storage. I definitely took advantage of that when I moved from Tennessee to Georgia. (Finding housing was a nightmare).
Rental Deposit or Mortgage Down Payment
If you are renting or buying, you’ll have to put something on the line. I have never purchased a home, and it turns out that when you move as much as we do, buying is not the best option.
But from our experience with rentals, you can expect a deposit on an apartment to range from $200 – 1 month’s rent, depending on your credit score. A house rental will typically be much higher, with 1 – 2 months of rent upfront.
If you have pets, expect those deposits and increased rents as well.
Packing, Cleaning, and Misc. Supplies Needed For The Move
We all know that packing supplies are not free, although you could find some old boxes outside of department stores and liquor stores (they are the sturdiest), most people will want to buy new ones.
The cost of this will depend on how much you are packing. For our 3-bedroom apartment, with an ungodly amount of junk, I’d estimate a minimum of $500 was spent at Home Depot. Boxes, tape, furniture wrap, etc.
Don’t forget smaller costs like cleaning supplies, new household items, or repairs and maintenance needed for your old or new home.
Knowing What To Expect
Relocating for a new job or role, whether it’s within the same company or a new one, often means uprooting your life. It’s essential to prepare for all anticipated expenses to make the transition as smooth as possible.
Even a move across town can be stressful. Add in greater career responsibilities and a completely new geographic location, and it’s easy to feel overwhelmed.
Having a clear understanding of the overall financial cost of relocation can help alleviate the uncertainty and clear the mental space for you to focus on “kicking butt and taking names” in your new role.