Commitments and Contingencies

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Lease Commitments

The following table sets forth our fixed lease payment commitments as a lessee as of March 31, 2024, for the periods below:


Year	Operating Leases		Finance Leases

Remainder of 2024	$	3,472	$	1,345
2025	3,156		1,597
2026	2,029		1,575
2027	1,341		1,305
2028	661		120
Thereafter	158		—
Total lease payments	10,817		5,942
Less: imputed interest	(722)		(336)
Total lease liability	$	10,095	$	5,606

The components of lease expense for the three months ended March 31, 2024 and 2023 are as follows:


	For the Three Months Ended March 31,

	2024		2023
Operating lease cost:
Fixed lease cost	$	837	$	893
Variable lease cost	475		326
Total operating lease cost	$	1,312	$	1,219

Finance lease cost:
Amortization of ROU assets	$	919	$	622
Interest on lease liabilities	152		56
Total finance lease cost	$	1,071	$	678

New-Build Commitments

We have entered into binding purchase agreements with certain homebuilders for the purchase of 1,970 homes over the next four years. Remaining commitments under these agreements total $629,351 as of March 31, 2024.

Insurance Policies

Pursuant to the terms of certain of our loan agreements (see Note 7), laws and regulations of the jurisdictions in which our properties are located, and general business practices, we are required to procure insurance on our properties. As of March 31, 2024, there are no material contingent liabilities related to uninsured losses with respect to our properties.

Legal and Other Matters

We are subject to various legal proceedings and claims that arise in the ordinary course of our business as well as congressional and regulatory inquiries and engagements. We accrue a liability when we believe that it is both probable that a liability has been incurred and that we can reasonably estimate the amount of the loss. We do not believe that the final outcome of these proceedings or matters will have a material adverse effect on our condensed consolidated financial statements.

In August 2021, we received a letter from the staff of the Federal Trade Commission (“FTC”), requesting information as to how we conduct our business generally and how business was conducted during the COVID-19 pandemic specifically. We have been cooperating with this request and have commenced preliminary discussions with the FTC related to a potential resolution of their inquiry; however, there can be no assurance that any current or future discussions with the FTC to resolve this inquiry will be successful. We are unable to predict the duration, scope, cost, or outcome of these preliminary discussions with the FTC or the ultimate outcome of the FTC inquiry and its effect on our business, prospects, operating results, and financial condition.

Given the preliminary stage of these discussions and the uncertainty as to their ultimate outcome, we are not currently able to the estimate of the amount or range of possible loss that may be incurred in the resolution of this matter.