Running properties smoothly depends on having the right people when you need them most.
But staffing isn’t always straightforward. Some days, operations slow down and a full-time staff feels unnecessary. Other days, demand picks up quickly and you need additional support to stay on track. That’s where temporary staffing comes in. It gives you the flexibility to adapt without carrying the full cost of permanent hires.
While full-time hiring and overtime have their place, strategically using temporary professionals offers a smarter way to manage workload spikes, control costs, and strengthen your core team without overextending resources.
The Real Costs of Overtime and Full-Time Staff
Before deciding if temp workers save money, it’s important to understand the actual costs of your other options: overtime and full-time hires.
Overtime
In the U.S., most hourly (non-exempt) employees must be paid 1.5 times their regular salary for hours worked over 40 a week.¹ That means each overtime hour costs 150% of the standard hourly wage, and overtime can quickly inflate your payroll expenses.
Moreover, employee output tends to fall sharply after about 40 hours a week, and productivity per hour drops once people work beyond that mark.² Those expensive overtime hours may yield diminishing returns as tired employees become less efficient. Beyond dollars and cents, burnout and fatigue from excessive overtime can lead to mistakes or safety issues, which are costly in their own right.
Full-Time Hires
Bringing on another full-time employee has its expenses beyond just salary. You’ll incur benefits, taxes, and insurance costs – roughly an extra 30% on top of wages on average.³ The U.S. Bureau of Labor Statistics reports that benefits account for about 29.5% of total employee compensation in the private sector. For instance, a full-time leasing agent with a $50,000 salary might cost around $65,000+ after including health insurance, 401(k) matches, paid time off, and other benefits.
Hiring also involves recruiting and training costs. Industry estimates put the average cost-per-hire at several thousand dollars when you factor in advertising the job, HR time, onboarding, and initial training. If your workload only justifies that extra person during peak months, a full-time hire could leave you paying for unused capacity during the slower times or facing tough layoffs later.
Are Temporary Staff a Cost-Saving Alternative?
Temporary (or contingent) staffing, which involves using workers from a staffing agency or on a short-term contract can indeed offer cost-saving advantages when used correctly. Here’s why:
Pay for What You Need
When you use a temp, you typically pay an hourly bill rate to a staffing firm and only pay for the hours worked. The agency officially employs the temp worker, meaning the agency covers their benefits and insurance costs. You avoid the year-round expense of benefits that a full-timer would incur.
This can significantly reduce overhead for seasonal or sporadic work. You’re not paying a full salary during slow periods or covering healthcare costs; the staffing firm handles that as part of their rate.
Lower Hourly Cost than Overtime
Compare your in-house employee’s $30/hour overtime rate to what a temp might cost. Even with agency mark-ups, a temporary maintenance tech or leasing assistant might bill at $25–$28 per hour. In this scenario, each hour of work by a temp costs less than your regular staff’s overtime hour.
During a busy month, those savings add up. For example, if you need 10 extra hours of work in a week, paying your employee overtime at $30/hr is $300, while a temp at $25/hr would cost $250, saving $50 per week per employee. Multiply that across multiple properties or weeks, and the financial advantage becomes clear.
Avoiding Burnout and Mistakes
There’s also value in giving your core team a breather. As mentioned earlier, hourly productivity drops once people exceed 40 hours weekly. Using temporary employees to handle the overflow, your full-timers can stick closer to 40 hours and stay fresh and focused. That means the work (both by your regular team and the temps) is more likely to be done right the first time, preventing costly errors or rework.
In property management, one mistake (like a rushed repair that fails) can become an expensive problem later. Temps can relieve overwork and help maintain quality service.
Trial Run Before Commitment
If you suspect you might eventually need another full-timer but aren’t 100% sure, temps let you “try before you buy.” You can observe the workload and the temporary worker’s performance. If the need persists and the person is excellent, you can offer them a permanent role.
If not, you part ways when the contract ends – no severance, no hard feelings. This avoids the risk of hiring someone permanently and finding you don’t have enough work (or that the person isn’t the right fit). Using a temp as a trial can save the cost of a bad hire, which can be substantial.
Ultimately, Does Temp Staffing Save Money?
Often, yes, especially for short-term or variable needs. By aligning labor costs precisely with workload, companies eliminate paying for excess idle hours and reduce overtime premiums. In fact, flexibility is one of the biggest reasons businesses turn to staffing agencies.
Rather than overstaffing “just in case” or burning out a small team when things ramp up, you can tap into a pool of qualified temps when needed and scale back when things are quiet. This on-demand approach keeps your labor costs optimized.
Read more: Temporary Staffing as a Savings Engine: Cutting Costs While Driving Business Productivity
Tips for a Cost-Effective Temporary Staffing Strategy
Now that we’ve examined how hiring temps can be cost-effective, let’s talk about how to implement a contingent staffing strategy wisely. Here are some practical tips for property management companies to get the best value out of temp staffing:
1. Analyze Your Workload and Overtime Patterns
Start by looking at your operations over the past year. Identifying these patterns will highlight where a temp could have helped. For example, if you’re paying a ton of overtime for landscaping and pool prep at your properties every spring, that’s a cue to plan for seasonal temp hires.
Set an overtime threshold as a guideline. For example: “if we’re consistently hitting 10+ hours of overtime per employee per week, we’ll bring in extra help.” This analysis ensures you use temps where they impact cost savings the most.
2. Look Into Specialized Staffing Services
Not all temp agencies are the same. Look for ones that specialize in property management or real estate staffing. There are staffing firms dedicated to providing leasing professionals, maintenance technicians, front-desk concierges, and other roles relevant to our industry.
A specialized partner will understand the skills and certifications needed (for instance, HVAC repair knowledge or Fair Housing training for leasing agents). They’ll have a pipeline of pre-vetted candidates.
Meet with the agency, explain your needs and busy periods, and establish a relationship. This way, when you call them for an emergency or seasonal staff, they already know your company and can find a good match quickly.
3. Plan Onboarding for Temps
A temporary worker might be with you for only a few weeks, but they should still get a warm welcome and a crash course in how your property runs. To maximize their productivity (and get your money’s worth), prepare a quick orientation or training cheat-sheet. For example, if you bring on a temp leasing agent, have a one-pager on your apartment layouts, basic pricing info, and the key selling points of the community.
Ensure temp maintenance techs know the safety procedures and where to find supplies. Assign a team member to be their go-to for questions on day one. Investing a small amount of time to orient temps will pay off in their becoming effective faster. They’ll spend less time “figuring things out” and more time adding value.
4. Consider Temp-to-Perm Opportunities
Keep in mind that a temporary hire can become your next great full-time employee. In property management, where trust and reliability are paramount, finding a temp who fits your company culture and performs excellently is a win-win situation. You save on recruiting costs for that position and get someone proven.
Many companies use temporary assignments as an “extended audition” where the temp gets to know the property and team, and you get to evaluate their skills. If the ongoing workload justifies it and the budget allows, you can convert a high-performing temp to a direct hire. If not, you can still benefit from their help and request them again next busy season. This approach mitigates the risk of hiring “blindly” and potentially saves the cost of a bad hire or a mis-hire.
Need extra support without the stress of full-time hiring? Trust The Liberty Group to handle it!
The Liberty Group helps property management companies find skilled temporary staff—whether you manage multifamily communities, commercial properties, or both. We connect you with experienced leasing agents, maintenance techs, and office support, so you can stay fully staffed without stretching your team or your budget.
Let’s make staffing simple for you. Contact us today to get the right people, exactly when you need them.
References:
- Hyatt, Diccon. “Overtime Tips and Car Loans: These Are the Tax Breaks Congress Is Mulling.” Investopedia, 27 Feb. 2025, www.investopedia.com/overtime-tips-and-car-loans-these-are-the-tax-breaks-congress-is-mulling-11687116.
- “The Relationship Between Hours Worked and Productivity.” Stanford University, cs.stanford.edu/people/eroberts/cs181/projects/crunchmode/econ-hours-productivity.html Accessed 28 Apr. 2025.
- “Employer Costs for Employee Compensation.” U.S. Bureau of Labor Statistics, 14 Mar. 2025, www.bls.gov/news.release/ecec.nr0.htm#:~:text=Total%20employer%20compensation%20costs%20for,See%20tables%201%20and%204.