Year-round lake and beach access, nearly 300 days of sunshine, and a variety of outdoor activities make the Lake Havasu area a popular destination for adventurers of all group sizes — with Lake Havasu City as its shining Arizona hub.
Between the 835,000 visitors who come every year and the rising popularity of local attractions, Lake Havasu City and its surrounding towns hold major opportunities for investors hoping to generate extra income with a vacation rental property.
To help you understand the revenue potential Lake Havasu presents, we created a free, downloadable vacation rental market analysis. Inside you’ll find:
The findings in this analysis are based on Evolve’s Lake Havasu rental market averages in the last year and provide a general baseline for performance potential. They’re designed to help inform smart buying decisions when purchasing a Lake Havasu investment property.
Easily-accessible from Las Vegas, the SoCal area, and Phoenix, Lake Havasu draws crowds from all over the western United States (with particular love from Californians in recent years), many of whom become loyal returners. It also gets a lot of attention from families looking for a wide variety of kid-friendly things to do. Guests are able to enjoy lakeside fun in Lake Havasu State Park during summer months, while temperate winter and spring weather make for ideal hiking, festival-going, and downtown exploration.
That’s why — while owners in many vacation rental markets rely on a single high season for the majority of their income — owners in the Lake Havasu rental market can attract a steady stream of eager travelers in multiple seasons. This means there’s potential for higher occupancy and daily rates for longer spans of the calendar year, translating to more chances for five-star reviews and additional income.
The median list price in Lake Havasu City currently averages just under $460,000, putting the area in fairly affordable territory for investors when compared to other western lake hotspots like Lake Tahoe. There’s also a lot of available inventory, giving interested buyers plenty of purchase options that fit a variety of home types, sizes, and price tags.
As a hub for tourism with loyal visitors, multi-season interest, and family demand, Lake Havasu offers major profit potential and the chance for owners to earn long-term guest trust and repeat bookings. To gauge just how much you might earn in this market, consider these important factors.
Five-bedroom properties rake in the most yearly revenue by a decent margin in the Lake Havasu rental market, thanks to their ability to accommodate up to 12 guests, set the highest nightly rates, and capture the high demand coming from family travel. However, homes of this size make up a very small percentage of local inventory, so interested buyers must act fast if they find one available for purchase.
While four-bedroom homes see the most nights booked on average of any property size, two- and three-bedroom homes are other great options to consider. They are the most common on the market (and therefore more readily-available for purchase), and do well to attract couples, snowbirds, and smaller families.
As a result, owners who opt for these more modestly-sized alternatives can still earn solid occupancy throughout the year at lower upfront costs. Plus, our top-performing home for annual nights booked happens to be a two-bedroom.
Though Lake Havasu’s footprint is fairly spread out, our real estate experts say properties close to downtown Lake Havasu City provide travelers with the most convenience. Look for homes within walking distance of (or a short drive to) popular restaurants, shops, and local attractions like the London Bridge. These to-dos are often top priority for guests, particularly in winter and spring months when swimming at the lake isn’t as favored.
Of course, close proximity to Lake Havasu itself still tops the list of must-haves for the majority of area travelers. While direct lake access is not common (Lake Havasu State Park has the vast majority of waterfront real estate), properties with easy public lake access and water views are often highly-booked. What’s more: top restaurants and the London Bridge also have lake proximity, so exploring your options close to the shoreline can help you check every guest-approved box.
While property size and location play a large role in performance, the experience guests have in your home is equally important.
With such great weather and the local preference for outdoor fun, look for homes that let guests soak it all in without leaving the premises. Value-adds like private pools, updated outdoor spaces, hot tubs, and firepits are some of the key amenities travelers look for in a vacation rental. Cater to families, too, by offering helpful kid-friendly perks. Stock your home with entertainment options like board games and family movies, and add intel around Lake Havasu’s best family-friendly activities and restaurants to your welcome book.
Of course, your guests will explore outside the property, so it’s important to make that breezy as well. Consider providing kayaks for some epic lake fun, plus beach amenities like towels, chairs, and toys for relaxation along its sandy shores.
Flourishing tourism, an appealing climate, and easy access to outdoor recreation are just a few of the things that make the Lake Havasu rental market a top choice for investment.
Whether you’re a first-timer in the industry or hoping to add to a growing portfolio, download our free Vacation Rental Market Analysis today for an expert look at how a Lake Havasu investment property can perform.
Inside you’ll find key insights like:
Buying a property in the Lake Havasu area doesn’t have to be stressful. Use our report to make a splash with informed, income-driving investment decisions.