Every summer, the population on Cape Cod nearly triples. Vacationers from across the country flock to the area to spend a week on The Cape with its windswept marshlands, quiet beaches, fresh seafood, and classic coastal charm.
The vacation rental industry has thrived here because many Cape Cod owners only use their properties for a few weeks out of the year. To offset the costs of seaside vacation homes, financially savvy owners rent them out to visitors the rest of the time. It’s a lucrative business, and one that’s quickly growing.
We wanted to give existing owners and prospective buyers in the area a better understanding of their earning potential, so we analyzed thousands of vacation rental listings and compiled our Vacation Rental Performance Report for Cape Cod, Martha’s Vineyard and Nantucket. The report will give you insight into the area’s average rental income, occupancy rates, booking windows, and much more.
Some of the key factors we’ve identified that are contributing to the region’s immense success are:
- Huge seasonal demand
- Long booking windows
- Plenty of great beachfront real estate
- Long stays on The Cape
Why Cape Cod Area Vacation Rentals Are So Successful
The demand for summer vacation rentals in Cape Cod, Nantucket, and Martha’s Vineyard is so stalwart that most properties, small or large, will rent out months in advance. You don’t need to have a beachfront mansion to be successful with vacation rental. Smaller, inland homes typically perform just as well.
Within driving distance of major New England cities, it’s easy for travelers from across the Northeast to plan vacations to The Cape and its coastal islands.
What makes those getaways even more enjoyable and memorable is the luxury of a home where guests can spread out. Vacation rentals make it possible for families to travel together comfortably without having to share hotel rooms or book multiple accommodations. They get to enjoy the privacy of a vacation home and have their own slice of paradise, if only for a week.
This leaves the homeowners in the favorable position of being able to fill their homes all summer long, if they want, while offsetting the costs of owning a property in some of the most desirable vacation locations in the Northeast.
How much owners can earn with Cape Cod area vacation rentals
In our report, we found that three-bedroom properties are the most common size for vacation rentals in this area.
Three-bedrooms represent 33% of the inventory and generate $23,900 in annual revenue at the median of the market. Meanwhile, three-bedroom properties in the 75th percentile generate as much as $35,743 per year.
Four-bedroom homes fall just behind in terms of inventory, making up 20% of all the vacation homes in this area and have a higher starting-point for rental income potential.
The median yearly revenue for a four-bedroom home is $30,958, and properties in the 75th percentile generate $47,698 or more.
Cape Cod is an area where you can count on filling your calendar with bookings year after year. But the true test of performance is whether you’re in the upper echelon for earnings and occupancy.
How to Make Your Cape Cod Area Vacation Rental Even More Successful
What makes some owners earn income at the top of the market, while others stay at the median? There are many factors that contribute to performance, including:
All owners can expect to book up during high season, but those in walking distance to the beach or a village will be in greater demand. They can afford to command higher nightly rates and secure bookings sooner than their competitors.
For summer travelers, certain amenities can make or break a booking. Air conditioning, wifi, and parking are non-negotiables. Other amenities that can make your property more appealing to travelers include private beach rights, outdoor showers, pools, etc.
Another factor that can make or break your performance is your property listing’s debut. If you own a home in this area, it shouldn’t surprise you that 25% of Cape Cod vacation rentals are booked more than 125 days in advance. If you don’t have your property up on listing sites and ready with attractive photos by late winter or early spring, you’ll lose out on booking opportunities.
If you run into this challenge, there are a few things you can do to help score last-minute bookings.
Download our full report for additional details
With consistent demand and strong returns, the Cape Cod area is proving to be one of the top markets for vacation rental ownership.
Are you thinking about buying a vacation rental in this area? Already own a second home in the area and want to outperform the competition?
Download our free 2018 Vacation Rental Performance Report for Cape Cod, Martha’s Vineyard and Nantucket to find out about:
- Rental income potential by property size
- Average occupancy by property size
- Average daily rate by property size
- Average days booked in advance
- Average length of stay
- Vacation rental inventory by property size
- Occupancy rate by month
Want to earn more from your second home without all the hassle? Evolve has helped more than 7,500 owners throughout North America earn over $300 million in rental income. Click here to learn how.
The Cape Cod Area
Vacation Rental Performance Report
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