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Big Players Entering the Single Family Housing Rental Business: A Good Thing?

Unless you're in the real estate business or a big RE nerd, it's not likely your weekend conversations were dominated by the announcement late last week that Atlanta-based Beazer Homes has partnered with investors led by the private equity powerhouse Kolhberg Kravis Roberts in a new venture: Beazer Pre-Owned Rental Homes Inc. With KKR's cash and Beazer's personnel, expertise and assets, the new company immediately became a major player in a business with an increasing amount of big players. This is notable because previously, single family rental properties were usually the province of individuals or small investor / property management groups. The entrance of big money and major home builders into the rental business is sure to rankle smaller investors (courthouse steps auction prices are likely to increase), but the phenomenon could be a positive development in the interminably-long housing slump / excruciatingly-slow housing recovery. Excess inventory could be moved-through faster (which is good for house prices overall), a more standardized market for single family rental homes could emerge, offering more (and better) options and some of those lost construction jobs could reappear with more haste, as the very carpenters who helped build houses could be brought in to renovate them. But this is only one way to look at the situation; realtors, mortgage folks, tenants, investors, what do you think? To the Comments section!

· Beazer Announces Launch of Pre-Owned Rental Homes Business [official release via Beazer]