Running the numbers on a marina-adjacent vacation rental can feel tricky. The water draws strong demand, but seasonality, HOA rules, and operating costs can swing results fast. If you want to invest in The Friendly Riviera in Maricopa, you need a clear, data-backed plan that shows what the asset can really earn. This guide gives you a practical underwriting playbook so you can set realistic expectations and make confident decisions. Let’s dive in.
Why marina-adjacent rentals perform
Water access is a powerful draw for weekenders and week-long travelers. Guests book for boating, fishing, and easy access to slips and ramps. Event weeks and holidays stack demand, which often lets you command higher rates. The flip side is that off-peak periods can be slower, so you need to plan for peaks and troughs.
Seasonality to expect
In Arizona, similar marina markets like Lake Havasu show strong spring and winter shoulder seasons, a high-demand summer holiday window, and softer weeks in the hottest months or coldest stretches. Your property near The Friendly Riviera may follow a similar arc, but you should confirm with local comps. The key is to model month by month, not just an annual average. Monthly ADR and occupancy curves will help you price confidently and forecast cash flow with more accuracy.
Confirm rules, taxes, and HOA limits
Before you rely on any revenue model, validate what is allowed:
- Short-term rental rules. Check permit requirements, occupancy limits, quiet hours, and parking standards in Maricopa and with your HOA.
- Lodging taxes. Identify transient lodging, sales, and tourism taxes. Decide if taxes are a pass-through to guests or absorbed as an expense.
- HOA and marina covenants. Confirm whether STRs are permitted, how slip access works, any special assessments, and required insurance.
- Platform remittance. Some platforms handle part of the tax collection. Match your bookkeeping to how taxes are actually remitted.
Build your revenue model
ADR from true comps
Start with a comparable set within 5 to 10 miles that match bedroom count, guest capacity, quality, and slip access. Note rate differences for premium views, updated finishes, and included boat slips. Build a baseline ADR, then adjust up or down based on your property’s amenities.
Occupancy by month
Create a 12-month occupancy curve from multi-year comp data. Highlight holiday weeks and event periods with premium pricing and minimum stays. Plan for slower months with lower occupancy and rate floors that still meet your goals.
Channel mix and fees
List your booking sources, such as Airbnb, Vrbo, direct bookings, or repeat guests. Apply each channel’s commission or credit card fee to the bookings that come through it. If direct bookings are part of the plan, include website or marketing costs.
Ancillary revenue
Itemize add-ons you can offer. Common items include cleaning fees you retain, boat slip rentals if allowed, pet fees, late checkout, or equipment rentals. Be clear on what the HOA and marina permit.
Tax treatment
Decide whether guest-paid taxes pass through outside of your gross revenue or are collected and remitted from your proceeds. Keep this consistent to avoid overstating revenue.
Model your operating costs
Variable costs that scale with stays
Include per-stay cleaning, laundry, guest supplies, and per-occupied-night utilities. Marina-adjacent homes can run higher electricity and water in peak heat, especially if guests use A/C heavily or there is a spa.
Fixed costs you cannot ignore
Budget for property taxes, insurance suited for vacation rentals, HOA dues, permits, accounting, and security monitoring. If you pay marina slip fees or assessments, model them explicitly.
Management and pricing support
Full-service management often ranges from a percentage of booking revenue to hybrid models with fixed fees. Clarify whether the fee is charged on rent only or on all guest charges. Include any booking-only or guest acquisition fees if you plan an a la carte approach.
Reserves and capital planning
Set aside a reserve for replacement for furniture, appliances, dock or slip maintenance, and future refreshes. A simple approach is a fixed percentage of gross rental revenue, reviewed annually.
Financing choices and risk
Debt service and DSCR
Underwrite with your actual interest rate, amortization, and loan-to-value. Calculate the Debt Service Coverage Ratio by dividing NOI by annual debt service. Many lenders target DSCR above 1.2 to 1.4 for short-term rentals, so run scenarios to confirm you clear that requirement.
Insurance and liability
Marina-adjacent use requires the right coverage. Seek quotes that include vacation rental exposure, general liability, and any endorsements for slip use or water-related guest activities as required by your HOA or marina.
Ownership and taxes
Your after-tax outcome depends on your structure and participation. Depreciation schedules and potential cost segregation can impact your returns. Speak with a tax professional to plan before you buy.
Metrics that keep you honest
- Gross rental revenue. Total rent before expenses and after removing pass-through taxes.
- Net Operating Income. Revenue minus operating expenses, excluding debt service and income taxes.
- Cash-on-cash return. Annual cash flow after debt service divided by your cash invested.
- DSCR. NOI divided by annual debt service.
- Cap rate. NOI divided by purchase price or current value.
- Break-even occupancy. The occupancy needed to cover all fixed costs and debt service at your assumed ADR.
A simple pro forma template
Use this structure and drop in verified local numbers:
- Available nights per year
- Monthly occupancy curve and ADR curve
- Gross rental revenue by month = Nights available × Occupancy × ADR
- Ancillary revenue = Retained cleaning + slip or equipment fees + other add-ons
- Platform and payment fees by channel
- Variable costs = Cleaning per stay + utilities per occupied night + supplies
- Fixed costs = Property tax + insurance + HOA + permits + marina fees + accounting + security
- Management fee = Percent of eligible booking revenue or hybrid model
- Reserve for replacement = Percent of gross rental revenue or fixed annual amount
- Net Operating Income = Gross rental revenue + ancillary − fees − variable − fixed − reserve
- Debt service = Per your lender
- Levered cash flow = NOI − Debt service
Keep a monthly view to see peak and off-peak cash flow clearly. Roll up to annual totals for your lender and investment committee.
Sensitivity tests to run
- ADR up or down by 10 to 20 percent.
- Occupancy up or down by 10 to 20 percent.
- Management fee variations and platform fee changes.
- Utility cost spikes during extreme heat.
- Event risk, such as lower water levels or temporary marina restrictions.
- Platform dependency risk, including algorithm changes or policy shifts.
Next steps to validate your deal
- Pull 24 to 36 months of monthly ADR and occupancy for true comps near The Friendly Riviera.
- Review 10 to 12 comparable listings to note pricing patterns, cleaning fees, minimum stays, and review velocity.
- Confirm STR rules, licenses, and HOA requirements for Maricopa and your community.
- Request recent utility bills and any marina invoices for a similar property.
- Get multiple quotes for insurance and cleaning to price your operations accurately.
- Obtain lender pre-approval to model debt service and DSCR requirements.
- Build best, baseline, and worst-case scenarios and calculate break-even occupancy.
Get local, hands-on support
Underwriting a marina-adjacent rental is part art, part science. You need real comps, clear rules, and practical operating plans to protect your downside and capture peak season upside. If you want experienced guidance from a broker and management team with deep Arizona resort-market experience, reach out to Michelle Morgan. We can help you source comps, validate rules, set pricing, and plan day-to-day operations so you invest with clarity and confidence.
FAQs
What is ADR for a marina-adjacent rental in The Friendly Riviera?
- ADR is your average nightly rate; set it from true local comps that match size, quality, and slip access, then adjust monthly for seasonality and event weeks.
How should I model occupancy for Maricopa, AZ short-term rentals?
- Build a 12-month occupancy curve using 24 to 36 months of nearby comp data, with separate assumptions for holidays, event weeks, and slower off-peak periods.
Which operating expenses are easy to miss in a marina location?
- Include HOA and marina fees, higher summer utilities, required permits, STR insurance, and a reserve for dock or slip maintenance.
What management fee should I expect for a vacation rental near a marina?
- Full-service management commonly charges a percentage of booking revenue or a hybrid model; clarify whether the fee applies to rent only or all guest charges.
How do I calculate break-even occupancy for my Riviera rental?
- Add up all fixed costs and expected debt service, then solve for the occupancy level at your projected ADR that covers those totals after variable costs and fees.
What risks should I stress test for a marina-adjacent property?
- Test for ADR and occupancy swings, utility cost spikes during extreme heat, HOA or marina restrictions, platform changes, and water level or event-related impacts.
