One of the nation’s top homebuilders plans to buy its own homes and rent them out.
Beazer Homes introduced its “Pre-Owned Homes Division” today, which will acquire, improve, and rent out recently built and previously owned homes in markets where the company operates.
“Homes targeted for inclusion in the Pre-Owned Homes program will have been built since 2004 by a reputable builder, including homes built by Beazer Homes,” the company said in a release.
“All Beazer Pre-Owned Homes will receive necessary repairs and upgrades to bring them up to strict Company standards.”
Beazer expects to acquire homes at a discount as most will be distressed sales, including foreclosures and short sales.
And Phoenix seems to be the test market, with more than 100 homes expected to be purchased in fiscal year 2011.
Beazer said it chose the desert metro because the rental market for recently-built homes is strong, with an estimated vacancy rate below five percent.
If things work out, Beazer may expand the program to include homes in Nevada or California.
The company said it will target consumers who have elected not to become homeowners, along with those unable to fully qualify for mortgage financing.
The move should help Beazer on a number of fronts, as they’ll be able to remove eyesores in the very neighborhoods they created, which should boost home prices and investor/homeowner confidence, while reducing foreclosures and upping home sales.
Those who rent the properties will eventually be given the option to buy as well.