This is the second of a two-part series on expatriate housing. The first looked at preparing for relocation; this part will review more nitty-gritty information, including housing allowances and how to negotiate leases.

Anne and her family have agreed to move to Beijing to help her company expand its operations into China. After an initial visit to the country, Anne identifies two neighborhoods as possible options, and now she and her husband are ready to make a second home-finding trip. Anne is unclear about her exact price range and how to negotiate a lease without incurring too many legal obligations in unfamiliar terrain.

Housing Allowances

Before beginning a housing search, it is important to know what the housing allowance will be, and don't be afraid to ask how it's calculated. It is also helpful to ask about the typical apartments or homes you might get in this price range, so you will have appropriate expectations.

"Expatriates should keep in mind that companies generally expect employees to contribute to the cost of housing in the assignment location," says Sheri Gaster, manager of international human resources at KPMG LLP. "The idea is that an employee should pay no more for housing while living in the assignment location than they would pay with the same base salary and family size in the home location. If the cost of housing is higher in the assignment location, most companies provide a housing allowance to alleviate the cost difference."

Anne's company hired a consulting firm to provide cost of living data comparing Beijing and San Francisco, where Anne currently resides. This helps the company develop a fair compensation package and appropriate housing allowance. Once Anne has her housing allowance, she can tell the relocation company assisting her what price range she can afford. The relocation company will set up appointments with its Chinese partners so Anne and her husband can view a number of apartments matching their criteria.

Leases

Leases can be spots for potential trouble. Documents are often written in another language and contain different legal jargon than you might be used to. "If possible, have a local assist you with the leasing process," recommends Gaster. "Tenement laws as well as who (the landlord or tenant) is responsible for what, can vary between countries."

Many expatriates have found out the contents of their leases the hard way; don't let this happen to you! Read the lease carefully, and ask your company to have a lawyer or real estate agent review it and translate it if you have any questions. Gaster, who previously managed a major relocation company's department of destination services and dealt with expatriate housing on a global scale, reminds expats: "In a lot of countries, it is difficult for an expatriate to have the lease in his or her name if there is no credit history in that country. In those cases, it is usually necessary for the company to put the lease in its name."

Anne is relieved to learn the lease will have to be in her company's name. This assures her that she will not be legally responsible for the property or dealing with any issues that might arise if her assignment comes to a close earlier than expected.

Anne's relocation company also informs her about the expectations the Chinese have regarding landlord-tenant relationships. Gaster emphasizes this issue, noting that each country has a different view on a landlord and tenant's roles and responsibilities. It is very important for expatriates to investigate the laws and code of conduct surrounding rental properties in their host countries.

Anne also finds out that in order for her lease to be legal, it has to be signed in Chinese and her company wants a copy in English. This is common; often a country requires that a lease be in its primary language. Her relocation company will be able to get the lease translated so all parties can understand the agreement. This eliminates much of the confusion and paves the way for a smooth signing of the deal.

Expatriate housing is a complicated issue, involving important work that should be done prior to relocation. Most organizations cannot provide such services in-house, so a global relocation firm will need to be hired to provide compensation data and assist with pre-departure visits and appointments with realtors. They also provide services like lease review and translation. With a bit of preparation and forethought, a complicated relocation can be made simpler, at least with regard to housing. This leaves employee free to deal with the move's personal aspects and the new professional responsibilities he or she will be assuming.