A lake house escape is the kind of getaway that never goes out of style — and it’s a vacation rental investment that you should consider right now.
Buying a lake house poses a massive income opportunity, and it’s no surprise why: from lazy summer days on the water to cozy nights snuggled around a fire pit, lake trips make for a truly relaxing vacation. Most travelers agree, with trips to waterfront vacation rentals coming in as the top vacation experience in 2022.
Before buying a lake house, though, it’s important to ask the right questions and familiarize yourself with the market. Here’s everything you need to know about making a smart and profitable lake property purchase.
In This Article:
Questions to Ask When Buying a Lake House
Questions to Ask When Buying a Lake House
Set yourself up for investment success by knowing what to ask when buying a lake house. The answers will guide your next steps on the road to putting in an offer.
1. What Are My Investment Goals?
It might be most important to enjoy your lake home with loved ones while covering expenses like a mortgage and upkeep, or you may decide that earning revenue is your top priority.
Whatever goal you establish upfront, making sure benefits outweigh costs can help you better understand the pros and cons of buying a lake house. It’s also a good idea to gain a thorough understanding of the industry, especially if you’re new to vacation rental.
Once you’ve worked out the bigger picture, keep in mind where you’re hoping to buy and that area’s cap rate (the key metric that sets expectations around return on investment), as these details factor into how easily you’ll achieve your goals.
2. How Much Does a Lake House Cost?
Lake home list prices fall on a broad spectrum, and largely depend on the market you want to buy in. On average, lake houses in top locations can cost anywhere from about $200,000 to $715,000.
Proximity to the lakeshore is another factor here, but one with long-term trade-offs: our real estate experts say vacation rentals right on the water come at higher price points, but can often earn higher rates and occupancy percentages.
On the flip side, purchasing a home set back from the lake can lower your upfront investment — and you may even save on additional costs that lakefront homes tend to require (like flood insurance, and maintenance repairs for weather-related wear and tear).
Regardless of which direction you go, our team says you should amp up the interior design and prioritize the amenities guests book most to give lake-loving travelers a reason to book your home over another.
3. What Type of Lake House Should I Buy?
The kind of lake house you buy doesn’t just come down to whether it’s lakefront or not. Think about the property type that’ll best suit your goals and markets of choice.
For example, you might have the budget for a sprawling, luxury home with enough room for large families — or you may decide that a cozier cottage better fits the bill. Cabins are another popular option, as this type of lake house tends to further boost the mood and scenery travelers are looking for when booking a lake house vacation. (If that fits your vacation rental vision, check out the best places to buy one in today’s market.)
From rustic A-frames to modern townhomes, evaluate the benefits and downsides of different property types to figure out how their construction might factor into your investment.
Did you know? Constantly-changing market trends can also play a role in where your lakefront investment property’s profits sail.
4. How Accessible Is the Area?
It can be easy to keep your main focus on the actual lake house you’re searching for, but it’s also important to take a closer look at the body of water it has access to.
If it offers sought-after recreational activities like power boating and water sports, find out where the closest marina or boat launch is to help you identify the most conveniently-located homes for sale. If you’re not right on the shore, it’s also helpful to note how easy it would be for guests to walk to the nearby lake.
Next, consider the surrounding area. Travelers want vacation to feel easy, so having grocery stores, shops, and restaurants nearby is a plus. If the town is well-suited for families or guests with pets, figure out how close local attractions (like amusement parks or dog-friendly cafes) are to the property you’re interested in. And if you really want to “wow” future guests, be sure to include details for getting to your favorite local treasures in the welcome book you provide.
Lastly, it’s important to confirm whether a lake house has reliable cell phone service and the ability for high-speed internet. Most vacationers want to unplug without losing access to the outside world, and some may even plan to work remotely. (If you’ve decided you want your lake house to be more off-the-grid, though, the right marketing and bonus touches can still grab guests’ attention.)
5. Is There Year-Round Demand?
Peak months for lake house bookings are July and August, and while seasonality can impact occupancy in areas where summer is the only time for high demand, many lake properties have the potential to be profitable all year.
Our team recommends looking at regions with year-round activities to really maximize occupancy rates. A location with boating, hiking, leaf-peeping, and ice fishing, for instance, can capture the interest of different guests and result in more income.
If that all-season draw isn’t available in the places you really want to buy a lake house, our team suggests aiming for an area with at least two high seasons. (This tends to be spring and summer, or summer and fall.)
Of course, one really strong season can still offset booking lulls. It’s all about aligning with market expectation, and using a dynamic revenue management strategy to make sure you’re always priced competitively.
With the right pricing and policies in place, your lake house vacation rental could make a financial splash all year long.
The Best Time to Buy a Lake House
Winter months are the best time to buy a lake house, as our team says it leaves the most room in your timeline to make sure your property checks all the boxes for five-star guest stays before peak seasons hit. The home might require renovations or upgrades, new furnishings, or routine maintenance work, so you’ll need sufficient time to prepare before listing on top booking sites.
If your preparation starts too late — our team says to give yourself at least three months — you risk not getting in front of eager travelers in time for a wave of bookings. That means losing out to competitor listings who are ready and able to host guests, and missing the chance to earn money and trust-building five-star reviews.
That said, the best time to buy a lake house for you will ultimately come down to your personal goals and timeline. If your dream lake property happens to hit the market as summer approaches, don’t feel like you need to hesitate — just make sure your revenue expectations for that year are accurately managed in light of purchase timing.
Where to Buy a Lake House
From rural hideaways to traditional all-American lake towns, there are tons of options available all across the country when figuring out where to buy.
If you’re leaning toward an all-season rental, our experts recommend narrowing your search to areas that provide more than just lakeside fun. Homes close to bustling metros, like Table Rock Lake in the middle of Branson, keep the tourists flowing in with year-round activities. Or lean into ski season when the lake is frozen over with places close to resorts like the Poconos in Pennsylvania. There are also locations like Lake Havasu City in Arizona and Granbury in Texas that never take a break from the sun when other parts of the country cool down.
The question of where to buy a lake house also goes beyond the destination. As you explore homes in top markets, consider these other important features.
Our real estate experts have crunched the numbers and these are the best places to buy a lake house right now.
1. Photo-Worthy Views
Buying a lake house with unobstructed views not only offers great scenery and the feeling of more private space, but our team says it can also significantly increase the value of the home. Consider investing in floor-to-ceiling or picture windows to put that view front and center. (And if you decide to pursue short-term rental with Evolve, your property will be professionally photographed to make sure that wow factor isn’t missed).
2. Lake Access Luxuries
When buying a lakefront property, look for homes with docks and boat slips, or make sure it’d be possible to install these perks to maximize your home’s potential. Providing recreational amenities like kayaks and paddleboards also helps guests enjoy their vacation to the max.
3. Profit-Driving Amenities
Since peak season typically happens during summer months, updated outdoor spaces are major selling points for potential guests. Adding top-requested amenities like a gas grill, comfortable outdoor seating, and a wood-burning fire pit can help you win bookings. Investing in a private hot tub can also drive success — searches for homes with private hot tubs are some of the most popular among Evolve travelers.
4. Family-Friendly Perks
Our team says lake homes are often booked by families, so it’s important to have kid-friendly amenities available like cribs or entertainment systems.
Be sure to lean into the area’s general “traveler profile” (the primary age range or group type most often visiting) as well. Some lake locations might also attract older crowds or young couples, and catering to those guests can help give your property a competitive edge.
How to Buy a Lake House
Even after learning the right questions to ask when buying a lake property and what to look for in a home, taking the next step can feel intimidating. Our team can help you:
- Define your personal and financial goals
- Understand the ins and outs of your favorite markets
- Connect with local real estate agents for area-specific assistance
You can also browse our listings for sale — from rentals already managed by Evolve to homes vetted for their investment potential, the perfect property for your business goals could be waiting.
With waterfront getaways being a top trend for travelers, there’s no time to waste in making a lake house investment. Start a conversation with our team today for a tailored look at how we can help make buying a lake house nothing but smooth sailing.