Signing two-year leases is a large part of our investor funds optimization strategy. We work with quality residents who are looking to be in the home for a longer period of time. There are many financial incentives for a two-year lease term. One major incentive is reducing turnover expenses. Once a property is leased out, cash reserves have no direct impacts because the rental property income takes care of any costs. Another major incentive is that two-year leases allow for consistency in rental income and dividend payouts for our investors.
In this video from a previous webinar, Arrived VP of Investments, Cameron Wu, explains why Arrived signs 24-month leases with tenants.