Backpacking Lakes District in February

My lady and I are going to spend February backpacking around northern Patagonia in 2017. I think we're going to be in the lakes district- our itinerary is pretty rough but looks like this:
Around 10 days split between Petrohue and Entre Lagos hiking around Vicente Perez Rosales and PN Puyehue (probably the puyehue traverse).
5 ish days in Valdivia
Another 10 days split between the Pucon/Villarica area and Curacautin hiking in PN Villarica and PN Conguillio

My first question is how far in advance should I make arrangements for hostels and buses?
Also any revisions to that itinerary would be greatly appreciated

Yes, in February, the accomodation in tourist resorts is full, and also expensive. But if you're going to do multiday hikes, i guess you will camp.
It is possible to descend from Puyehue NP to Lake Rupanco and then continue to thr Termas (hot springs) de Callao, before returning by public boat on L. Rupanco then bus to Osorno (boats to Petrohue are too expensive).
You can do the complete Villarica NP traverse.
It is difficult to visit NP Conguillo by public transport, but Malalcahuello is an alternative, you can clilb volcan Lonquimay.

Most hiked are described on the wikiexplora website.

In Petrohue, just do the dayhike to Paso Desolacion.
Valdivia you just need 2 days or so to enjoy the coastline.
There are also many excellent treks further North towards Santiago in Central Chile. Think about it in case there is a spell of bad weather in the Lake District. From Chillan northwards excellent weather is almost 100% guaranteed. The top hike would be in Vilches, circuit of the Altos de Lircay reserve and the Decabezado Grande base camp. The Valle de Aguas Calientes, a short trek from Termas de Chillan, is also a top sight (many undeveloped hot springs in the middle of the mountains).

Ok thanks that's really helpful. By tourist resorts do you mean hostels? The lonely planet book lists a bunch of hostels that allow people to camp for less money- do even those fill up in February? Also how far in advance should I make bus arrangements

By tourist resorts, i mean places like Pucon or Puerto Varas, for any type of accomodation. Local busses either can't be booked or only a few hours beforehand. For the nightbusses Santiago Lake District , yes very exprnsive and full begin February, and even more so for the returns around end February, when all Chileans return to Santiago.

In hostels you would be competing with the hundreds of local university students who head south in February. But you can have better luck in less iconic places (with less night life). If stuck for a place, go to the local tourist office which often has a list of rooms in private homes. Chile has become more economical for Argentine tourists so there should be a lot of them around next summer, although they prefer January.

Will lesser visited towns like Entre Lagos, Petrohue, Villarica and Curacautin also be completely booked in February? And If I'm planning on staying in areas that will have full hostels how far in advance do you think I should plan to make arrangements?

To be honest, i never stay in Chile in February (but it is already difficult to find a room in Pucon in January). Towns like Puerto Montt have more availability. Most accomodation is in family run small places, named hostal, hospedaje, residencial, ... not in hostels aimed at foreigners (and generally more expensive).

OK thanks a lot. My last question is is any of the Villarica traverse technical and how reliable are the water sources along the way?

No not technical, excellent trek as long as you have good weather. On the eastern part of the traverse there is water, on the trail that goes round the Villarica volcano water is scarse, you have to get it from stagnant ponds at one point.

The Lonely Planet book says the only way to access the park is by renting a car or taking a taxi. In your experience, is it easy to get a taxi to the park? Also would there be taxis at the park to take me back to Villarrica?

And do you feel comfortable leaving your backpack in a hostel while going out to explore the town for a few hours or is there too big of a risk of something getting stolen?

I have never used a taxi neither a rental car in Chile. Only bus and yes, frequently, hitchhiking on the small ruralroads. It worls well. But sometimes i must hike further kilometers ...i don't stay in hostels either, i have left stuff in family run hospedajes, hostales, ... while trekking for several days.

So after finishing the Villarrica Traverse do you usually hitchhike from the CONAF station in Puesco? I'm also wondering if I should change my itinerary. I was thinking about spending 2 days in Villarrica before the hike and one day after. Then spending 3 days in Valdivia, 2 days in Entre Lagos before doing the first half (3 days)of the Puyehue traverse, spending 4 days in Petrohue hiking in Vicente Rosales and exploring the area and then 2 days in Osorno. Do you think it would be worth it to spend more time in Villarrica to have access to all of the national parks, guides, nightlife, and other activities in the area? And if so, what would you recommend cutting out of my itinerary?

Yes, i have hitchhiked in Puesco.
I much prefer Pucon to Villarica, but only outside the peak season.
There isn't much to do in either Entre Lagos or Petrohue. The only hike in Petrohue is the excellent Paso Desolacion. If you want a further trek in that area, go to Cochamo and hike to La Junta. To reach the Termas de Callao, it is a hugely expensive boat trip from Petrohue. I already mentionned an alternate itinerary earlier in this discussion to combine volcan Casablanca on the Puyehue ridge and Termas de Callao in one trek.
Also in Osorno there is nothing for tourists.
If you have extra days, you could go to NP Conguillo or Reserva Malacahuello, for instance.

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