Retained vs. Contingent: Which Real Estate Staffing Model is Right for Your 2026 Budget? 🏢💰

As we navigate the complexities of the 2026 property market, real estate firms are facing a unique crossroads. With the mortgage rate average stabilizing at 6.3% and active listing growth up by 8.9%, the demand for high-performing talent is surging. However, the cost of a "bad hire" has never been higher.

Choosing the right hiring solution is no longer just an HR decision; it is a critical fiscal strategy. Whether you are expanding a multifamily portfolio, seeking commercial real estate executive recruiters, or stabilizing senior assisted living staffing, the model you choose will dictate your ROI.

1. The Contingent Model: No-Win, No-Fee Recruitment ⚡

The contingent model is the most common form of real estate executive recruitment. In this "success-based" structure, the recruiter is paid only when a candidate is successfully hired and starts the role.

How it Works:

• Payment Terms: Typically 20% - 35% of the candidate’s first-year base salary, paid upon permanent placement.

• Exclusivity: Usually non-exclusive; a firm might engage multiple headhunters for the same property management role.

Pros for your 2026 Budget:

• Low Initial Risk: You pay nothing upfront. If you find a candidate through a referral, you owe the agency $0.

• Speed for Mid-Level Roles: Ideal for high-volume apartment management headhunter needs or facilities management staffing where the talent pool is broader.

Cons to Consider:

• Lack of Depth: Since contingent recruiters only get paid if they "win" the race, they may prioritize speed over a deep culture fit.

• The "Resume Bomb": You may receive a high volume of semi-qualified resumes, increasing the administrative burden on your internal team.

2. The Retained Model: The Executive Search Standard 🎓

Retained recruitment (or "Search") is a premium service where the firm is hired exclusively to fill a specific, often senior-level, position.

How it Works:

• Payment Terms: A "retained" fee is usually paid in three installments: 1/3 at the start, 1/3 at the short-list stage, and 1/3 upon completion.

• Fee Structure: Often 30% - 35% of the total first-year compensation.

Pros for your 2026 Budget:

• Guaranteed Results: Retained headhunting for real estate roles typically boasts a 90% - 100% completion rate.

• Access to "Passive" Talent: This model is designed to hunt for the asset management leader who isn't looking at job boards but would move for the right opportunity.

• Confidentiality: Essential for C-suite residential recruitment or replacing an underperforming incumbent.

Cons to Consider:

• Upfront Investment: Requires a budget commitment before a single interview takes place.

• Time Intensive: These searches are thorough, often taking 60 - 90 days to reach a final offer.

3. Comparing the Models: A Budgetary Breakdown 📊

Feature	Contingent Staffing	Retained Executive Search
Typical Fee	20% - 25%	30% - 35%
Payment Timing	100% on start date	Milestone-based (Upfront)
Exclusivity	Non-exclusive	Exclusive
Best for	Mid-level / High-volume	Senior / C-Suite / Niche
Risk	Firm risks time	Client risks upfront fee

4. Which Model Fits Your Property Sector? 🏘️

Choosing a hiring solution in 2026 depends heavily on the complexity of the role and the scarcity of the talent.

• Multifamily & Apartment Portfolios: For hiring apartment managers or regional VPs, the contingent model is often sufficient due to the high volume of active candidates in the sector.

• Commercial & Asset Management: When asset management recruiting for institutional portfolios, a retained search ensures you find a leader with specific financial modeling and capital markets expertise.

• Senior Assisted Living & Healthcare: Because senior assisted living recruitment is highly regulated and requires a specific personality, a retained approach often yields better long-term retention.

• Facilities Management: For facilities management recruitment at a single-site level, contingent is standard. For a National Director of Facilities, retained is recommended.

5. The True Cost of a Bad Hire in 2026 💸

According to 2026 industry data, the cost of replacing a mid-to-senior level real estate professional is roughly 1.5x to 2x their annual salary.

• Direct Costs: Recruitment fees, relocation expenses, and signing bonuses.

• Indirect Costs: Lost productivity, decreased team morale, and potential damage to investor confidence.

If a direct hire for a $150,000 Asset Manager role fails within six months, the total loss to your firm could exceed $250,000. In this context, paying a retained fee for a guaranteed "perfect fit" is often the more conservative financial move.

6. How Executive Property Staffing Solves the Dilemma 🤝

At Executive Property Staffing, we understand that every real estate budget is unique. We don't believe in a one-size-fits-all recruiting approach. Instead, we act as a strategic partner to help you determine the most cost-effective path for your specific needs.

We provide a comprehensive range of hiring solutions across the commercial and residential sectors:

• Hybrid Models: For certain multifamily staffing or property management headhunting projects, we offer "Contingent-Exclusive" models—the speed of contingent with the dedicated focus of retained.

• Expert Headhunting or Recruiting: Whether you need senior living recruitment or residential property management staffing, our headhunters are deeply embedded in the industry.

• Permanent Placement Focus: Our direct hire services are backed by rigorous vetting. We don't just send resumes; we send solutions.

• Asset & Facilities Management Specialists: We maintain one of the largest databases of asset management and facilities management professionals, allowing us to pivot between search models based on your budget.

In 2026, talent is the ultimate asset. Whether you choose retained for your next CEO or contingent for your regional management team, Executive Property Staffing ensures your investment results in a high-performing, long-term hire.