5.Lease Incentives

The following summarizes lease incentives by component as of September 30, 2018 and December 31, 2017 (in thousands):


		At September 30, 2018		At December 31, 2017
Non-contingent lease incentives	$	14,883	$	14,904
Contingent lease incentives		6,219		6,577
Total	$	21,102	$	21,481

The following table summarizes our lease incentive activity for the nine months ended September 30, 2018 and 2017(in thousands):


	Nine months ended September 30,
	2018				2017
		Funding		Amortization		Funding		Amortization		Write off
Non-contingent lease incentives	$	1,272	$	(1,292)	$	5,713	$	(1,181)	$	(1,205)	(1)
Contingent lease incentives (3)		—		(359)		—		(500)		(2,634)	(2)
Total	$	1,272	$	(1,651)	$	5,713	$	(1,681)	$	(3,839)

⁽¹⁾

Represents the write-off of lease incentives related to two MC communities due to negotiations to transition these properties to another operator in our portfolio.

⁽²⁾

Represents the write-off of lease incentive related to an ALF community due to change to the business model at the property that resulted in lower net operating income and the improbability of paying the earn-out.

⁽³⁾

Subsequent to September 30, 2018, we entered into an amended master lease agreement with Senior Lifestyle Management, LLC (“Senior Lifestyle”). Among the provisions of the amendment, the contingent lease incentive payable to Senior Lifestyle was removed. Therefore, subsequent to September 30, 2018, we will write-off the Senior Lifestyle contingent lease incentive of $6,219 and the related earn-out liability of $9,292 which will result in income of approximately $3,000.

Non-contingent lease incentives represent payments made to our lessees for various reasons including entering into a new lease or lease amendments and extensions. Contingent lease incentives represent potential contingent earn-out payments that may be made to our lessees in the future, as part of our lease agreements. From time to time, we may commit to provide contingent payments to our lessees, upon our properties achieving certain rent coverage ratios. Once the contingent payment becomes probable and estimable, the contingent payment is recorded as a lease incentive. Lease incentives are amortized as a yield adjustment to rental income over the remaining life of the lease.