When housing costs go beyond rent: the hidden legal expenses of US relocations

When planning a US relocation, housing budgets are often built around one main assumption: monthly rent.

In reality, the US rental market involves a series of legal and contractual costs that go well beyond rent and that are increasingly unavoidable.

For HR and Mobility teams, understanding these hidden expenses is essential to control budgets, timelines, and employee experience.

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🔍 What is often underestimated

Many companies assume that once a rental budget is approved, the housing process will run smoothly.

However, in many US cities, securing a lease now requires multiple upfront and non-refundable payments, driven by landlord risk policies and highly competitive markets.

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⚖️ The hidden legal costs HR teams should anticipate

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🛡️ Paid guarantor services

When international assignees do not yet have a US credit history, landlords increasingly require third-party guarantor services.

These services typically cost one month of rent or 7–12% of the annual rent, paid upfront and non-refundable.

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🧾 Application and administrative fees

Each adult applicant may be subject to:

• Application fees
• Credit and background checks

These fees apply even if the application is ultimately declined.

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🏢 Board and building approval fees

In condos and co-ops, additional requirements may include:

• Board application packages
• Processing and move-in fees
• Mandatory insurance documentation

All subject to fixed timelines outside HR control.

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🔐 Security deposits and upfront obligations

While capped in some markets, security deposits remain legally required and must be paid before keys are released, alongside the first month’s rent.

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📊 Why this matters for HR and Mobility teams

• Many of these costs are non-recoverable
• Late identification leads to budget overruns
• Unexpected charges increase employee stress
• Housing timelines can be significantly extended

In tight rental markets, cost transparency upfront is now as critical as housing availability itself.

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🛠️ What we recommend

• Integrate hidden housing costs into relocation budgets from the start
• Address guarantor strategies before launching housing searches
• Align HR, finance, and mobility teams on approval thresholds
• Prepare assignees early to avoid last-minute pressure

Anticipation remains the most effective cost-control tool in US relocations.

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📌 Key takeaway

In the US rental market, rent is only part of the equation.

Legal and contractual costs increasingly determine whether a relocation moves forward or stalls.

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🤝 How Expat US Supports Your US Expansion?

We play a central role in your relocation strategy :

• Coordination with your immigration attorney
• Strategic guidance on US market entry
• Full support for executives, employees, and families through our expat services
• Seamless relocation services to ensure a smooth transition
• Answers to your operational and mobility questions at every step

If you need support or have questions regarding US relocations, the Expat US team is here to help
📩 relocations@expat-us.com

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