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 $465,503, and homes have appreciated by 1.28% 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 4.85% 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.
