One of the key decisions you'll need to make is whether to invest in short-term or long-term rental. With Lake Havasu’s unique appeal, particularly around the famous London Bridge and its outdoor activities, understanding what works best can significantly impact your bottom line.
Both types of rentals offer distinct advantages and challenges, and what you choose largely depends on your goals, property size, and market conditions.
In this guide, we’ll walk you through the benefits of short-term and long-term rentals in Lake Havasu City and help you make an informed decision.
Short-Term Rentals: Capitalizing on Havasu City’s Visitors
Lake Havasu City attracts thousands of visitors every year, particularly for its outdoor activities and vacation rentals around the London Bridge. Short-term rentals have become a significant source of revenue for property owners in this area.
Short-term rentals benefit from high demand, particularly in peak months like January, when tourists seek warmer climates.
The average daily rate for short-term rentals in Lake Havasu City tends to be higher than the median rent for long-term properties, which means you can earn more over a shorter period. As a result, you may enjoy more flexibility in managing your property and setting prices based on market conditions. However, remember that the national average shows short-term rental revenue can fluctuate based on seasons and visitor traffic.
Furnished Rentals as a Lucrative Option
Furnished rentals provide significant opportunities for owners, especially in popular tourist spots like Lake Havasu City, where visitors appreciate fully equipped homes. These properties attract travelers seeking a hassle-free experience without needing furniture or household items. Your property can stand out by offering furnished spaces, giving guests immediate comfort and convenience.
Such rentals draw more visitors, including those on extended stays, business travelers, or families relocating temporarily. Furnished properties often command higher rates, providing value with stocked kitchens, cozy living areas, and modern amenities. The rise of remote work has also led many professionals to choose furnished rentals that offer a home-like work environment.
Managing Short-Term Rentals
Managing short-term rentals involves frequent cleaning, guest communication, and property maintenance. The average stay varies, making turnover a challenge. Last year, vacation rentals peaked in summer and during events but dropped in the off-season. Also, local regulations for short-term rentals can change, affecting owner responsibilities.
Long-Term Rentals: Stability and Predictability
In contrast, long-term rentals provide a more consistent and reliable income. These properties usually draw tenants searching for a permanent or semi-permanent residence in the community, making them an attractive choice for investors desiring a more passive investment. In Lake Havasu, houses offered for long-term rent typically attract individuals or families wanting proximity to amenities such as the London Bridge or those working in the local economy.
Long-term rentals usually have lower rates than short-term but provide steady monthly income with less volatility. Properties with attractive features, like water proximity or great views, can achieve higher long-term rents. Additionally, long-term tenants may accept rent increases due to inflation, boosting revenue. Managing one or two tenants makes long-term rentals less labor-intensive, avoiding constant turnover.
However, the key downside is the inability to capitalize on short-term demand spikes, and your income is often fixed for the duration of the lease. Additionally, long-term rental properties are more vulnerable to the local median rent changes in the area, as they depend on market trends and investment conditions.
Making the Right Investment Decision
So, what works best in Lake Havasu City? The truth is, there’s no one-size-fits-all answer. Short-term rentals provide higher revenue, especially if you can take advantage of the high demand during tourist season, while long-term rentals offer more stability and predictability.
It’s also worth noting that property size, location, and the potential for income in a particular area will affect your decision. Investors looking for flexibility and maximizing revenue may find short-term rentals appealing, while those seeking consistent income might prefer long-term options.
Finding the Right Strategy for Your Investment
Both short-term and long-term rentals fit the Lake Havasu City market. Your best choice depends on your goals, investment decisions, and management involvement. Arizona Living Rentals offers expert guidance to help you find the ideal rental strategy for your property.
Whether you're considering a vacation rental or a long-term lease, we have the expertise and resources to ensure your investment succeeds. Explore our services to make the most of your Lake Havasu City property today.
