In a housing market inundated with potential buyers who can’t qualify for mortgages, some builders are offering a rent-to-own option on selected single-family homes. Rent-to-own (also known as lease-to-own or lease-purchase) can be a good source of supplemental income for builders. It also reduces carrying costs on unsold inventory and helps convert more homes to sales.

Some builders have a separate division to handle the rental side of their business, while others prefer to work with customers on a case-by-case basis. T&M Building Co. of Torrington, Conn., and Classic Communities Corp. of Harrisburg, Pa., are two examples.