VPM Solutions Blog

The Real Cost of a Bad Hire in Property Management

Written by Ross Gilbert | Dec 15, 2025 2:30:01 PM

Hiring the wrong person is expensive in any industry, but in property management, the impact hits harder and faster: residents need quick responses, owners expect consistent communication, and maintenance issues can escalate in hours. Every role matters. A bad hire doesn’t just slow down a process, it puts pressure on the entire operation.

This is why structured hiring matters. And it’s why VPM Solutions created the new VPM Academy course, Build a Hiring System that Attracts Top Talent, built specifically for property management teams that want predictable hiring outcomes. 

Bad hires are preventable when the right systems are in place.

 

Why Bad Hires Hurt Property Management Companies More Than Most Industries

Property management moves fast. Vacancies, maintenance, resident concerns, and owner communication all require accuracy and urgency. When the wrong person is in the seat, performance slips quickly.

Even one underperformer can slow task completion, increase resident frustration, and damage the trust that owner relationships depend on.

The Direct Costs of a Bad Hire

A bad hire drains time and money long before the company realizes the mistake. These costs are visible, measurable, and immediate.

Salary and Onboarding Expenses

Salary is only the beginning of what a bad hire costs. The U.S. Department of Labor estimates that a single bad hire can cost up to 30% of that employee’s first-year salary, making the financial impact significant even before you factor in lost time or performance issues. (Nelson Connects) In property management, this number is often higher because slow response times, communication mistakes, or workflow delays affect both residents and owners.

A few common cost factors include:

  • Salary paid during training
  • Supervisor time spent teaching workflows
  • Tools, software seats, and onboarding materials

Even in the best-case scenario, replacing that hire doubles the expense.

Training Time and Lost Productivity

Property management teams can’t afford inefficiency. A new hire who can’t keep up delays communication, slows internal processes, and forces experienced team members to step in and fix work.

This leads to reduced productivity across the entire team, not only the individual.

Replacement Hiring Costs

Once the wrong person exits, the company must restart the process. This often means additional job ads, resume screening, interviews, and onboarding the next candidate, which multiplies the original cost.

The Hidden Costs Most Teams Don’t See Right Away

Direct expenses are only part of the story. The more damaging effects of a bad hire show up in resident satisfaction, owner retention, and team culture.

  • Resident Experience Declines: Slow responses, scheduling errors, or unresolved issues can frustrate residents and lead to negative reviews or unnecessary move-outs. For example, a maintenance coordinator who fails to process a request within 24 hours can turn a simple work order into a resident complaint and poor management reviews. 
  • Owner Trust Weakens: When owners notice missed updates, late reports, or communication gaps, they lose confidence. In a competitive market, trust is everything.
  • Team Stress and Culture Impact: When a new hire underperforms, the team compensates. Workloads increase, stress rises, and burnout grows.

This environment makes turnover even more likely and often begins a costly cycle of repeatedly onboarding new people.

Why Bad Hires Happen in Property Management

Many hiring mistakes aren’t caused by a lack of effort. They happen because teams are overwhelmed and reactive.

Reactive Hiring and Limited Talent Pools

Most companies start hiring only when workloads are already overwhelming. When the team is buried in tasks, the focus shifts from finding the right person to finding any person who can start quickly. Local talent pools are often small, which creates even more urgency and pressure. 

This combination leads to rushed decisions, minimal screening, and a higher chance of choosing a candidate who isn’t equipped for the demands of property management.

No Standardized Screening Process

Without a structured hiring system, teams rely heavily on resumes and quick conversations. This leaves out deeper insights into how a candidate communicates, how they solve problems, and whether they can handle the pace of property management. When every interviewer is using a different approach, important details slip through the cracks. 

Rushed Decisions Without Role Clarity

When a job description is vague or outdated, it’s difficult to evaluate applicants consistently. The team may focus on general strengths instead of the specific qualities needed for success. As a result, candidates are placed in roles that don’t match their skills or work style. 

How a Strong Hiring System Prevents Expensive Mistakes

A structured process reduces hiring risk, improves consistency, and increases the chances of placing the right person in the right role. A strong hiring system is built on a few core elements that make every hiring decision clearer, more consistent, and far less risky.

  • Clear Job Descriptions and Expectations: A good hiring system starts with clarity about the role, performance targets, and the type of candidate that fits.
  • Multi-Step Screening for Skills, Behavior, and Attitude: Property management is highly people-driven. Technical skills matter, but behavior and attitude determine how successful someone will be in a fast-moving environment.
  • Pre-Hire Training and Talent Pipelines: The new VPM Academy course, Build a Hiring System that Attracts Top Talent, teaches PM leaders how to build a hiring pipeline before the need becomes urgent. When your next hire is already trained and ready, the risk goes down and performance goes up.

How VPM Solutions Helps Property Managers Avoid Bad Hires

A good hiring system becomes even more powerful with the right platform behind it. VPM Solutions gives property management companies access to skilled global talent and tools that improve hiring accuracy.

Better Sourcing Through Affordable, Skilled Talent

VPM Solutions gives property management companies access to a wider and more qualified talent pool than traditional local hiring. Many virtual assistants on the platform already have experience with leasing, maintenance coordination, resident communication, accounting support, or other PM-specific workflows. This means companies spend less time training on the basics and more time integrating the new hire into their systems. 

Because the talent is global, it’s also significantly more affordable, allowing teams to scale with skilled support without increasing payroll pressure. The result is stronger candidates, more predictable performance, and a smoother hiring process from the very beginning.

Better Screening With Video Tools and Assessments

Most hiring mistakes happen when teams don’t have enough information about a candidate before the interview. VPM Solutions solves this with built-in screening tools that help companies evaluate communication skills, personality fit, work style, and role readiness. Hiring teams can review:

  • Self-interview videos that show how clearly and confidently a candidate communicates
  • DiSC profiles that reveal behavioral tendencies and team compatibility
  • Hiring for Attitude assessments that highlight work ethic, motivation, and problem-solving approach
  • Skill-based evaluations that measure technical abilities relevant to PM tasks

These insights let teams focus their interviews on high-quality candidates who are already aligned with the role.

Better Onboarding With the VPM Academy

Onboarding is one of the most time-consuming parts of hiring, especially when new employees lack foundational PM knowledge. With the VPM Academy, talent can complete role-specific certifications before their first day. This includes courses on property management operations, communication best practices, software tools, and workflow fundamentals. 

When a new hire arrives already trained, teams can move straight into practical instruction instead of spending hours on the basics. 

For additional recruiting insights, watch the VPM webinar, Great Hiring Starts With Great Recruiting.

Have a Strong, Consistent Hiring Process With VPM Solutions

Bad hires are costly, not just in salary, but in service quality, team stability, and owner satisfaction. The good news is that most hiring mistakes are preventable with a structured process, better screening, and the right support.

VPM Solutions gives property management teams a clear path to better hiring outcomes, stronger candidates, and long-term stability.

Want to start hiring with confidence? Get expert guidance with a free consultation from our recruiting team.