When an organisation is responsible for housing an overseas employee, the aim is to provide a high quality, cost-effective service. The first priority in ensuring a smooth transition process for expatriate assignees is to search for the right type of accommodation. Depending on your assignees’ needs and circumstances, serviced apartments may be the most attractive, and cost-effective housing option.
A cross between a hotel room and a home, the concept of serviced apartments aims to provide apartment facilities with hotel services. Some of these perks include a kitchen area, maid services, furnishing and building security. Serviced apartments are usually promoted as a “one-stop shop” experience, with space and comfort being a key advantage over hotel stays.
A major factor to consider when deciding the type of accommodation for your expatriate is the expected length of stay. If you’re considering long-term accommodation for the employee, renting a regular apartment could be more advantageous. Besides saving costs, it will also give the tenant more freedom to make their new dwellings feel like home.
In Singapore, most condominiums provide amenities and high security which match the scale of luxury found at most hotels. Domestic help is available inexpensively, so tenants can enjoy the same level of convenience offered by serviced apartments, at their own cost. In fact, according to Andrew Soon, Regional Director, Corporate Services, Crown Relocation Worldwide, some landlords of private apartments are throwing in cleaning services to market them as serviced apartments to tenants, at more reasonable prices.
However, if an international employee’s term is temporary – one to six months – and there is a toss-up between housing them in a serviced apartment or a hotel, the serviced apartment is usually the better choice. Relocation experts explain that this is not just about comfort. The technicalities and arrangements associated with short-term assignments create definite roadblocks for apartment rentals. There are limited options in Singapore for intermediate-term accommodation, as minimum leases for permanent accommodation are usually set at twelve months.
Even if the employer manages to negotiate a short-term lease in permanent accommodation, shipment terms throw another spanner in the works. Short term assignees are not usually entitled to shipment allowances, hence the advantage of fully furnished accommodation, which serviced apartments provide. International assignees who will be staying in Singapore for a longer period will benefit from the convenience of having a temporary home. Soon says serviced apartments are ideal places to stay upon arrival. It gives expatriates and their families the feeling of a real home while waiting for large furniture shipments to arrive.
Soon reminds employers that serviced accommodation does require a higher level of self-sufficiency on the tenant’s part. But if the tenant is happy to arrange his or her own meals and laundry, the employer is spared the higher cost of a long-term hotel room. Most challenges that come with renting a serviced apartment have to do largely with expenses. In many serviced apartments, a one month deposit is required upfront even if the rental period is only one month. “Some companies find this a bother as they have to follow up on deposit returns,” explains Soon. He also warns of caps on utilities services and other chargeable items such as broadband internet and cable television, and tokens for common area laundry facilities.
An additional advantage of serviced apartments is space. The value of space isn’t just beneficial for tenants’ comfort – it is also economical when companies are looking to house more than one executive. Alfred Ong, Senior Vice President, The Ascott Group, says companies which house two or three people in a multiple-room service apartment manage to save the cost of a hotel room while providing tenants the privacy of individual bedrooms. “We are in fact seeing more business from companies as they look for greater value in the economic downturn,” he says.
What residents want
If both employers and employees find that the benefits of serviced apartments outweigh the setbacks, they should definitely opt for this type of housing. Half the battle in relocating expatriates is their transition process, and if the accommodation choice is suitable to employer’ budget while catering to the employee’s needs, then it’s a win-win scenario for both parties. It’s one part of a complicated process that can be signed off on early.
Besides impressive physical features, international assignees also crave comfort and a sense of belonging when they are working and living in a foreign country. The “home away from home” aspect of the serviced residence appeals to jet setting residents who place importance on seeing familiar faces and welcoming surroundings. The staff at Ascott’s serviced residences are dedicated to making life less hectic for guests. Arrangements for services such as courier, dry cleaning, grocery shopping and babysitting are not uncommon, and they convey to tenants that they are willing to go the extra mile.
Anthony Fitzpatrick, Director, Quantitative Analytics Group, Royal Bank of Scotland, says his current stay at Ascott Singapore Raffles Place has been ideal. He praises the staff and owners for the wide range of services, from the availability of appliances and the central location to the level of service professionalism. “For me, it represents the best stress-relief system around,” he says. Having a relaxed and private home to come back to after the daily challenges of work, particularly in the current economic climate, is a constant benefit.
Although there is definitely a serviced residence choice for every type of guest, employers must consider several challenges in choosing a suitable provider. Selecting accommodation is like a smaller-scale version of developing a full relocation package – employers have to consider what employees want after they leave the office.
Lourdes Juco, director of sales and marketing, Shangri-La Hotel, Singapore reminds employers that everyone has different preferences and priorities. Some might consider it very important to be close to the fashion and shopping of Orchard Road while others would place proximity to good schools at the top of their list. Other key considerations include the need for food and beverage amenities, meeting and function space, health and recreational facilities, and the extent of housekeeping and security services.
Make a deal
A good serviced residence provider will be flexible in packaging its products. For companies feeling the crunch of the financial crisis, it is even more important that they find a reasonable deal to help them stretch their relocation dollar. Different packages fitting executives’ requirements can be tailored for the duration of their stay, and save the company a considerable amount of money. For instance, some guests may only require high speed internet but not daily housekeeping. Others may require breakfast (usually provided) but only on certain days.
One deterrent for employees staying at serviced apartments can be the limits on certain facilities, like restaurants, within their premises. For employers, this is another factor to consider – is the serviced apartment connected to a larger hotel enterprise? If so, guests generally have access to the full facilities and services of the hotel. This is the case with Shangri-La Apartments, directly linked to the namesake hotel.
Tan emphasises that the global reach of a serviced residence provider is a highly important factor to consider as well. A large international serviced residence provider tends to provide consistent standards and services across borders and continents. That’s a definite plus when it comes to staff who will take on several international assignments over the course of their careers. Staff will associate the company’s brand name with their unique services and enjoy a familiar experience every time, despite their distance from home.