Lake Havasu City Short-Term Rental Regulations

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Permit & Licensing

Lake Havasu City Vacation Rental Permit

This permit type does not require primary residence.

Application Process

Step 1: Register with the State of Arizona by obtaining an Arizona Transaction Privilege Tax (TPT) License; the city permit cannot be issued without a valid TPT number. Step 2: Create an account on the Lake Havasu City Citizen Portal, complete the registration form and signature acknowledgements, then submit the Vacation Rental Permit application with the property address, property owner contact, and 24-hour Emergency Contact information. Pay the non-refundable $250 annual permit fee online. The application is then reviewed for approval. Permit adopted under Ordinance No. 16-1142, Chapter 5.20, effective March 1, 2023.

Tax Obligations

Combined rate: 10.5% of gross rental income.

Collection: Owner/operator self-reports and remits Transaction Privilege Tax (TPT) to the Arizona Department of Revenue via the TPT License at aztaxes.gov; ADOR collects the State, Mohave County, and Lake Havasu City lodging tax through centralized licensing and reporting.

Rental Limits

Lake Havasu City does not impose an annual cap on the number of nights you can rent. Each individual stay must be less than 30 days.

Zoning & Restrictions

Arizona law (A.R.S. § 9-500.39, SB 1168) bars municipalities from using zoning to prohibit or restrict short-term rentals, so Lake Havasu City imposes no zoning-based STR restriction.

Insurance & Safety

Insurance

Operators must maintain at least $500,000 in liability insurance covering the property's use as a short-term rental.

Safety & Operating Requirements

• Comply with all applicable fire, building, health and safety codes, including functioning smoke and carbon monoxide alarms and a fire extinguisher (Code 5.20.050)
• Display a required notice on the inside of the front door and the primary door to the backyard or in a conspicuous location near each door, printed in 14-point or larger bold font on laminated or protected paper
• Designate a 24/7 Emergency Point of Contact who responds to complaints or emergencies in-person, telephonically, or by electronic mail (Code 5.20.040)
• Maintain liability insurance of at least $500,000 in the aggregate, or offer the rental through an online lodging marketplace providing equal or greater coverage (Code 5.20.050)

Penalties for Non-Compliance

• First verified violation: $500 or one night's rent as advertised, whichever is greater
• Second verified violation (same calendar year): $1,000 or two nights' rent as advertised, whichever is greater
• Third and subsequent verified violations (same calendar year): $3,500 or three nights' rent as advertised, whichever is greater
• Failure to provide required contact information: $1,000 for every 30 days
• Failure to apply for a permit within 30 days: $1,000 per month

Compliance Checklist

Follow these steps to legally operate a short-term rental in Lake Havasu City:

1. Meet safety requirements. Comply with all applicable fire, building, health and safety codes, including functioning smoke and carbon monoxide alarms and a fire extinguisher (Code 5.20.050). Display a required notice on the inside of the front door and the primary door to the backyard or in a conspicuous location near each door, printed in 14-point or larger bold font on laminated or protected paper. Designate a 24/7 Emergency Point of Contact who responds to complaints or emergencies in-person, telephonically, or by electronic mail (Code 5.20.040). Maintain liability insurance of at least $500,000 in the aggregate, or offer the rental through an online lodging marketplace providing equal or greater coverage (Code 5.20.050).
2. Obtain liability insurance. $500,000 minimum.
3. Apply for Lake Havasu City Vacation Rental Permit. Submit application + $250 fee.
4. Register for tax accounts. Set up lodging tax accounts with Arizona Department of Revenue.
5. Collect and remit taxes. 10.5% on all bookings.
6. Renew annually. $250 renewal fee.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Lake Havasu City?

Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Lake Havasu City requires a Lake Havasu City Vacation Rental Permit.

How much does a short-term rental permit cost in Lake Havasu City?

A Lake Havasu City Vacation Rental Permit in Lake Havasu City costs $250 per year.

Does Lake Havasu City require a short-term rental to be your primary residence?

No. Lake Havasu City allows non-owner-occupied short-term rentals, so investment properties can qualify provided you hold the required permit.

How many days a year can you short-term rent in Lake Havasu City?

Lake Havasu City does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.

What taxes do you pay on a short-term rental in Lake Havasu City?

Short-term rental stays in Lake Havasu City are subject to a combined 10.5% in lodging taxes. This combines 5.5% Arizona Transaction Privilege Tax (TPT) — State & County + 2% Lake Havasu City Sales Tax (Hotel) — City Code 3.04-444 + 3% Lake Havasu City Additional Hotel/Bed Tax — City Code 3.04-447. The host is responsible for collecting and remitting them.

What happens if you run a short-term rental without a permit in Lake Havasu City?

Operating without a permit can cost up to $3,500 or three nights' rent (whichever is greater) for third and subsequent violations.