Why Do Owners Want a MTM Property Manager, but 12 Month Leases?

[Drew Sygit]

It seems the majority of rental property owners want to lock tenants into 12-month leases. Yes, there are more than a few that insist a Month-To-Month (MTM) lease gives them more flexibility in getting rid of problem tenants, but isn't that what lease violations are for?

Given this, we're curious as to why so many SFR rental property owners are turned off by a 12-month management agreement? Is it just a case of wanting the "best of both worlds", where they can lock in tenants while keeping their own freedom?

Or is there some deeper reason?

[Michael King]

What if it doesn't work out and the PM is a shister? I've seen a couple of people here having trouble with their PM of choice, but when the PM doesn't pull their weight and the owner is locked into a contract....they're stuck. Why would you want to force an LL to have a 12 month agreement? I would want a PM that works hard enough so I don't have to waste my time managing my properties AND the PM at the same time. Then the business is earned. 

Kind of like a government handout - why would anyone work harder for something that's guaranteed? At least, this is my opinion after having had good and bad property managers. I find the bad ones always push the 12 month agreement, the good ones don't.