Owning a second home in Lake Havasu City

Why it works, and when it does not

Lake Havasu is close enough to several large metro areas that people use a home here often, not once a year.

It tends to work when:

• You already come several times a year and would come more if it were easier.
• You are paying for hotels or rentals, plus storage, plus fuel to tow both ways.
• You want your own things here: the boat, the gear, the stocked kitchen.

It is a harder fit when:

• You would use it two or three weekends a year.
• Nobody will check on the house between visits.
• You are counting on rental income to make the payment.

What weekend and seasonal owners should prioritize

Part-time owners use a house differently. These are the features that keep coming up, in rough order.

1. Storage that fits what you bring. If the boat lives here, it needs a garage or a legal place to sit. Read the guides to boat garage homes and RV garage homes.
2. Lock-and-leave. Desert landscaping on drip irrigation. No lawn. A simple pool or none. Fewer things that can fail while you are gone.
3. Shade outside. A covered patio you can use at 4 p.m. is worth more than a large uncovered one.
4. An easy route to your ramp. You will drive it with a trailer every time you come.
5. Room for guests and their rigs. Friends bring trucks and trailers. Look at the driveway and the street, and at any rules about parking on it.
6. A layout that sleeps people. A bunk room or a den with a door often matters more than a formal dining room.

The empty-house plan

The biggest difference between a second home here and one in a mild climate is the heat. Set this up before your first long absence.

• Someone local checks the house. A home-watch service, a neighbor or a property manager, on a schedule.
• Cooling stays on at a higher setting. Ask an HVAC company what they recommend for your system.
• A smart thermostat and leak sensors. So you know about a failed unit or a leak the day it happens.
• Water off at the house when you leave, if your plumbing and irrigation are set up to allow it.
• Weekly pool service. A pool turns quickly in summer.
• Irrigation checked. A broken drip line can run for weeks unnoticed.
• Pest control on a schedule.
• Your insurance agent knows it is a second home. Some policies have conditions for homes that sit vacant.

Which areas part-time owners look at

There is no single second-home neighborhood. Buyers usually sort into one of three camps.

The Lake Havasu neighborhoods guide compares them side by side.

House, condo or lot?

• A house gives you the garage and the yard. It also gives you the roof, the pool and the landscaping to look after.
• A condo is the least upkeep. Ask where a boat or trailer can be kept, because the answer is often "somewhere else."
• A lot lets you build the garage you want. It also means a build timeline, design rules in some communities, and carrying land while you plan.

Taxes and paperwork for part-time owners

A few things work differently for a home that is not your main residence.

• Property tax class. Arizona puts a primary residence in one class and a second home or rental in another. Both are assessed at the same ratio, but a primary residence gets a state reduction on school taxes that a second home does not. The Mohave County Assessor can confirm how a parcel is classed.
• Your loan. Second-home loans have their own rules. Tell your lender the truth about how you will use the property.
• Residency. Owning a house here does not by itself change where you are a resident. If you plan to change states, see moving to Lake Havasu from California and talk with a tax professional.
• Boats and vehicles. Where a boat, trailer or vehicle must be registered depends on where it is kept and where you live. Ask before you assume.

If you might rent it out sometimes

Lake Havasu City requires a permit for every vacation rental. The city rules took effect on March 1, 2023.

• You need an Arizona transaction privilege tax license first.
• You apply for a city permit for each property. The city lists the annual fee at $250.
• You must name an emergency contact who is available at all hours.
• Noise, trash and parking rules apply, and neighbors can report problems.

An HOA can be stricter than the city. Some communities set a minimum stay. Some do not allow short stays at all. Read the recorded documents for the exact home.

Paige does not project rental income, and you should be careful with anyone who does. Buy a home you would be glad to own with no renters.

Buy now or keep visiting?

Nobody can time the market for you. A better way to decide is to run your own numbers.

• How many nights did you spend here in the last 12 months?
• What did you pay for lodging, storage, and fuel to tow?
• Would you come more often if the boat and gear were already here?
• What would the full cost of ownership be each month, including the empty-house plan above?
• Is anything in your life likely to change how often you can come?

If the answers point toward owning, the next step is working out what to buy. That is what the Buyer Assessment is for.

Mistakes part-time owners make

• Buying more house than they use. Extra rooms are extra cooling and cleaning for a home that is empty most of the month.
• Underestimating the garage. They planned for the boat they have. Then they bought a longer one.
• A pool nobody is watching. A beautiful pool with no service plan is a problem by August.
• Skipping the HOA parking rules. Then finding out guests cannot leave a trailer in the driveway overnight.
• No one with a key. When the alarm goes off or the AC quits, someone local needs to get in.

Questions buyers ask

Is Lake Havasu a good place to own a second home?

It suits people who already visit several times a year, bring a boat or RV, and can drive here in half a day or less. It is a harder fit if you would only come twice a year, or if you do not want to manage a house in extreme summer heat from a distance.

Can I leave my boat at the house when I am not there?

In a garage, yes. In a driveway or side yard, it depends on the neighborhood. Much of the city has no HOA and owners keep boats on their lots. Gated and master-planned communities often limit how long a boat or trailer can sit in view. Check the rules for the specific home.

Do I turn off the air conditioning when I leave for the summer?

Most part-time owners leave it running at a higher setting instead of turning it off, because a closed-up house in this heat is hard on cabinets, flooring, electronics and seals. Ask a local HVAC company what setting they recommend for your system.

Will I owe Arizona income tax because I own a home here?

Owning a second home does not by itself make you an Arizona resident. Rental income from an Arizona property is a different matter. Tax rules depend on your situation, so talk with a tax professional who works with both states.

Is a second-home loan different from a regular mortgage?

Yes. Lenders treat primary homes, second homes and investment properties as three categories with different down payment and rate rules. Tell your lender exactly how you will use the home so you are approved for the right one.

Can I rent my second home when I am not using it?

Lake Havasu City allows vacation rentals with a city permit and a state tax license. Some HOAs restrict or ban short stays. Read both sets of rules before you count on rental use, and do not buy based on a projected income number.