Commitments and Contingencies

9 Months Ended

Sep. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Lease Commitments

The following table sets forth our fixed lease payment commitments as a lessee as of September 30, 2022, for the periods below:


Year	Operating Leases		Finance Leases
Remainder of 2022	$	1,188	$	671
2023	3,952		2,563
2024	3,675		857
2025	2,227		93
2026	1,117		6
Thereafter	500		—
Total lease payments	12,659		4,190
Less: imputed interest	(599)		(143)
Total lease liability	$	12,060	$	4,047

The components of lease expense for the three and nine months ended September 30, 2022 and 2021 are as follows:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,

	2022		2021		2022		2021
Operating lease cost:
Fixed lease cost	$	800	$	991	$	2,466	$	3,105
Variable lease cost	384		364		1,133		968
Total operating lease cost	$	1,184	$	1,355	$	3,599	$	4,073

Finance lease cost:
Amortization of ROU assets	$	675	$	699	$	2,055	$	2,115
Interest on lease liabilities	51		64		178		220
Total finance lease cost	$	726	$	763	$	2,233	$	2,335

New-Build Commitments

We have entered into binding purchase agreements with certain homebuilders for the purchase of 2,212 homes over the next five years. Estimated remaining commitments under these agreements total approximately $700,000 as of September 30, 2022.

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 September 30, 2022, there are no material contingent liabilities related to uninsured losses with respect to our properties.

Hurricane-Related Losses

During the third quarter of 2022, Hurricane Ian damaged certain of our properties in Florida and the Carolinas. We estimate that our homes incurred approximately $19,000 of hurricane damage which has been expensed as impairment and other on our condensed consolidated statements of operations for the three and nine months ended September 30, 2022 and is reflected in other liabilities on our condensed consolidated balance sheet as of September 30, 2022. Based on previous experience, we anticipate that additional damage, and thus costs, may be identified and incurred over the coming months. As such, our estimates will be adjusted as new information becomes available. Additionally, a portion of our losses may be recoverable through insurance policies that provide coverage for wind, flood, and business interruption, subject to deductibles and limits.

Legal 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.