MilesBuzz! - Employer Sponsored Mortgage??

On Friday, I found out that my employer will be changing my territory. I used to travel to many different cities throughout the US. Based on this new position, I will be required to spend approx. 10 nights per month in Atlanta.

So, based on this change, I'll still earn the FF miles and I can always continue my hotel programs. However, I may consider actually buying a home in the Atlanta area. This would not be my primary residence, but merely a place to live during my business trips to ATL.

Now, my employer pays for all my travel expenses and at $200 per night, the monthly hotel expense will be a minimum of $2000.

I wonder if I could convince them to reimburse me for a portion of my mortgage at a discounted rate of $100 per night. To me, it's a win-win situation. My company saves $100 per night or $1000 per month and I receive $1000 per month towards my mortgage in Atlanta.

Has anyone ever proposed a similar idea to their employer?

Does anyone currently have an agreement like this with the company that they work for?

Thanks

Though it is not especially common, companies have been known to negotiate housing allowances. It is more common for a full time assignment, especially when living offshore, but it does occur sometimes for part time travel as you've described. Unlike standard hotel expense, I believe these allowances are taxable as income if the residence is domestic so confirm the tax status prior to discussing any numbers. The real risk though is that unless provisions are made in an employment contract (which sounds unlikely in your case) you have the full risk of covering the second mortgage should your travel needs change or if you are separated from the company.

There are definitely taxable consequences to what you’re suggesting. I wonder could you make the following suggestion: have a target for expenses, customer related. For every dollar you save, you get a certain percentage. The mortgage idea is interesting, but since the company sees benefit to you, it behooves them to capture value for the company: try to offer you 50 cents on the dollar, something like that. It's what I would do. ;) Whatever option you choose, you are going to pay taxes.

I spent 5 years in Rio on an assignment with a Fortune 50 organization. They paid for local accommodations, auto, driver, etc. My question is what is the policy of your company re temporary relocations. A variation of that policy might get you what you are seeking.

Please keep us advised regarding your outcome.

Good luck :)

747LWW

It can vary greatly company to company... some large companies can be very inflexible as to official policy and exceptions.

Your best bet may be to try and negotiate some sort of per diem, say $150/night (including food?) where both of you can make out in the long run.

Do be wary of home ownership costs such as closing costs, taxes, insurance and upkeep, and what happens if the employment (or assignment/contract) falls through?

Definetly try. And Im sure you can get more than 1000, go for 1500

Your best bet may be to try and negotiate some sort of per diem, say $150/night (including food?) where both of you can make out in the long run.The current US Government per diem rate for Atlanta (including food) (http://www.gsa.gov/Portal/gsa/ep/contentView.do?queryYear=2006&contentType=GSA_BASIC&contentId=17943&queryState=Georgia&noc=T) is $164. This assumes a lower nightly lodging rate ($115) than you'll probably find without being eligible for a Government rate.

Just be reasonably sure that your frequency of travel will be sufficent to make this work out for you.

You might want to talk to an accountant about this. Perhaps there is some way you can bill them per night you stay there at the going hotel rate. I would think that most companies would prefer to just get a corporate apartment for you. Personally, I would rather have someone to clean things up every day and have enough hotel points to have a nice free vacation once a year.

Now, my employer pays for all my travel expenses and at $200 per night, the monthly hotel expense will be a minimum of $2000.

I wonder if I could convince them to reimburse me for a portion of my mortgage at a discounted rate of $100 per night....

This sounds kind of risky, as you might be locking yourself into this job--particularly as the real estate market declines you might not be able to sell.

My employer offers a mortgage subsidy (basically they lend me the money at a much lower-than-market rate), but I have no intention of using the benefit until I'm absolutely sure I want to stay there for at least 5 years. (I'm also happily watching San Francisco real estate prices slowly decline...)

Why don't you ask if they would just rent an apartment for you? Same convenience, much less risk, and probably much less tax liability.

On Friday, I found out that my employer will be changing my territory. I used to travel to many different cities throughout the US. Based on this new position, I will be required to spend approx. 10 nights per month in Atlanta.

So, based on this change, I'll still earn the FF miles and I can always continue my hotel programs. However, I may consider actually buying a home in the Atlanta area. This would not be my primary residence, but merely a place to live during my business trips to ATL.

Now, my employer pays for all my travel expenses and at $200 per night, the monthly hotel expense will be a minimum of $2000.

I wonder if I could convince them to reimburse me for a portion of my mortgage at a discounted rate of $100 per night. To me, it's a win-win situation. My company saves $100 per night or $1000 per month and I receive $1000 per month towards my mortgage in Atlanta.

Has anyone ever proposed a similar idea to their employer?

Does anyone currently have an agreement like this with the company that they work for?

Thanks

Buuut whaaat abooout the pooooiiinnnnts?!?!?

10 nights a month is nothing; I wouldn't buy another house/condo for that. I would push for the company paid corporate apartment. The upside is that you can leave toiletries there. :rolleyes: ^

Buuut whaaat abooout the pooooiiinnnnts?!?!?

Yeah, no kidding. :D

I think the rental idea is better than buying. You should be able to get a decent apartment for the whole month for under the $2000 cost. In this scenario, it probably avoids taxable income because you're only there part of the time (not your main residence), but I am not an accountant. We used to rent apartments for employees, and it was a touchy thing as far as whether or not it was really allowed to be a simple expense for the company vs taxable income to the employee.

If you said you wanted to buy a house because you're eventually going to move to Atlanta, that's different. Perhaps then it would make more sense. But it won't save the company as much as you think. If you say $1000 allowance, that will be taxable to you, and taxable to them for various purposes (FICA, unemployment, etc). So you won't get $1000, and they won't get $1000 of savings. And if you got to where you had a net of $1000, they would get very little or no savings.

Yeah, no kidding. :D

I think the rental idea is better than buying. You should be able to get a decent apartment for the whole month for under the $2000 cost. In this scenario, it probably avoids taxable income because you're only there part of the time (not your main residence), but I am not an accountant. We used to rent apartments for employees, and it was a touchy thing as far as whether or not it was really allowed to be a simple expense for the company vs taxable income to the employee.

If you said you wanted to buy a house because you're eventually going to move to Atlanta, that's different. Perhaps then it would make more sense. But it won't save the company as much as you think. If you say $1000 allowance, that will be taxable to you, and taxable to them for various purposes (FICA, unemployment, etc). So you won't get $1000, and they won't get $1000 of savings. And if you got to where you had a net of $1000, they would get very little or no savings.
If the company is paying, get the hotel. Then you get enough points to pay for a vacation for the family. AND if you don't have as much of a workload in Atlanta, you don't have the condo burden.

If the company is paying, get the hotel. Then you get enough points to pay for a vacation for the family. AND if you don't have as much of a workload in Atlanta, you don't have the condo burden.

Yeah, but with the condo you get to leave your toothpaste, deodorant, shaving cream, even clothes there, which means you can travel with barely any luggage and not check anything.

If you are really spending 1/3 of your time in Atlanta, I'd think having "your place" there would make life a lot easier.

What does any of this have to do with Discussion of the latest 'frequent flyer program' buzz...only! ?

What does any of this have to do with Discussion of the latest 'frequent flyer program' buzz...only! ?The option the OP is considering involves the loss of opportunity for hotel points. I agree that the OP has not considered this trade off very thoroughly.

Yeah, but with the condo you get to leave your toothpaste, deodorant, shaving cream, even clothes there, which means you can travel with barely any luggage and not check anything.

If you are really spending 1/3 of your time in Atlanta, I'd think having "your place" there would make life a lot easier.
I agree with the sense of having a home. BUT THE POINTS! :(

First of all, thank you to everyone who took the time to respond. Sorry that Quokka didn't like the location of this discussion, but, if there is a better forum to use, I'll difer to the mods.

I realize that this proposal was not going to be popular with my fellow travelers who crave the POINTS!! However, if I could have 50% of a third home financed by my employer, I was willing to earn my points through other travel.

After all, it would be very nice to sleep in your own place during these business trips. As ftweb pointed out with the recent travel restrictions, having my toiletries at this location would be a great convenience.

As for the tax implications, my proposal was that my company would simply view this as an expense similar to their reimbursement of my current hotel costs. The other way to look at it would be an increase in a per diem as suggested by johnndor.

As for suggesting a corporate apartment, I wouldn't give up the points without the benefit of help with a mortgage. I also wouldn't suggest this idea unless I was certain of my status with the comany. I have worked with this company for 20+ years and feel that in my position, that my job is pretty secure.

With all that said, I made a nice proposal today, and was essentially shot down. The company will only consider the hotel route and may be consider sharing in the corporate apartment concept. No real explanation, just the infamous quote of "Thats our policy".

So, you'll see me hanging out at the nearest Hyatt, Hilton or SPG property in ATL. For my fellow point fiends, I hope you'll welcome me back to the fold.

Thanks again for all your great responses!

I agree with the sense of having a home. BUT THE POINTS! :(

Really, the big names need to combine some of their programs. Wouldn't it be great if you could convert your points into a down payment on one of those "vacation club" property ownership schemes? :)

While I agree that in most cases such an arrangement should be a taxable situation for the employee, consider the case of a colleague who purchased a condo in the city where he's been assigned for the past 6 years -- rather than pay $2100 a month for a corporate apartment, his company went along with his suggestion that a $50 per diem for housing costs was appropriate. He gets $50 every day of the month, and reimbursement comes through his normal expense reporting procedure. For all intents and purposes, his company is building equity for him, and he'll take 100% of that equity with minimal out-of-pocket expense whenever he decides to sell. Yes, I know, no points, but he lives in South Beach to begin with! :D