Lake Havasu City, located in Mohave County, Arizona, is a popular tourist destination due to its scenic beauty and the availability of water sports. This has made it a prime location for investors to enter the short-term rental market.
In this guide, we will analyze the trends and data points for the Airbnb rental market in Lake Havasu City.
Market Analysis
The average gross yield is 9.06%, which is a healthy return on investment. However, it is important to note that the average property tax rate in Mohave County is 0.70%, according to SmartAsset, which will impact the investor’s net yield.
Supply
The most popular homes are 3-bedroom homes, comprising 60.43% of inventory. This is followed by 4 and 2-bedroom homes at 14.92% and 14.54% of the total inventory, respectively.
Property Value
According to Zillow, the median home value in Lake Havasu City is $465,808, and homes have appreciated by 0.30% over the last year. The increase in home values may make it challenging for investors to enter the market, but the potential for high revenue from short-term rentals may make it worthwhile.
Average Daily Rate
The median ADR for the market is $305. The Average Daily Rate is the highest for 6 bedroom homes ($321) followed by 5-bedrooms and 4 bedrooms at $295 and $219 respectively.
Airbnb Rental Laws and Regulations
Lake Havasu City has a relatively investor-friendly short-term rental regulation. Property owners are allowed to rent out their properties for short-term rentals without a permit, and there are no occupancy or duration restrictions. This makes it easier for investors to enter the market and generate revenue from short-term rentals.
Demographics
The median household income in Lake Havasu City is $59,617, according to the United States Census Bureau. The population of the city is approximately 58,000 people, making it the largest city in Mohave County.
Hosts
The market is dominated by property management firms. The largest host is Evolve with 15.94% of the total inventory and an average review of 4.84⭐️s .
Climate
Lake Havasu City has a hot desert climate, with an average temperature of 78.6 degrees Fahrenheit. The summers are extremely hot, with average temperatures in the 100s, while the winters are mild, with average temperatures in the 60s. The city receives very little rainfall throughout the year, making it an ideal location for outdoor activities.
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Sports Teams and Colleges
While there are no major professional sports teams in Lake Havasu City, the city does have a number of amateur and recreational sports teams. These include the Lake Havasu City Heat, a semi-professional football team, and the London Bridge Rugby Club.
Lake Havasu City is home to one college, Arizona State University at Lake Havasu, which is part of the Arizona State University system. The college offers undergraduate programs in a variety of fields, including business, engineering, and the humanities.
Guests
The majority of the guests come from outside of Arizona. 5.08% of all guests are from Los Angeles followed by Las Vegas with 3.52%.
Crime Rate
According to NeighborhoodScout, the crime rate in Lake Havasu City is relatively low compared to other cities in Arizona. The city’s crime rate is lower than the national average, with property crimes being the most common type.
Tourism
Lake Havasu City is a major tourist destination, with visitors coming from all over the world to experience the city’s stunning scenery, exciting water sports, and unique attractions. According to the Lake Havasu City Convention and Visitors Bureau, the city receives over 775,000 visitors annually.
Tourist Attractions
The most popular tourist attractions in Lake Havasu City include the iconic London Bridge, which was brought over from England in the 1960s and reconstructed in the city, as well as Lake Havasu, which is known for its crystal clear water and ideal conditions for boating, jet skiing, and other water sports.
Other notable attractions include the Havasu 95 Speedway, which hosts regular car racing events, and the Havasu National Wildlife Refuge.
Peak Season
The peak season in Lake Havasu City is from March to September, with the busiest months being April and May. During this time, the city’s population swells with tourists and visitors, and hotel and rental prices may be higher than during other times of the year.
Conclusion
In conclusion, Lake Havasu City, AZ, is a promising market for investors looking to enter the short-term rental industry. The high demand for short-term rentals and the relatively relaxed regulations make it an attractive location for investors. However, investors should also consider property taxes and the appreciation of home values in the area when making investment decisions. With careful consideration and analysis, investors can make the most of the short-term rental market in Lake Havasu City.
