The short-term rental market in Barnstable, Massachusetts, is thriving, with a median occupancy rate of 59%, average daily rates of $325, and annual host revenues of $70,000, making it a highly profitable and stable investment opportunity.
Thriving Short-Term Rental Market in Barnstable, Massachusetts
The short-term rental market in Barnstable, Massachusetts, is experiencing a period of robust growth and profitability. With a median occupancy rate of 59%, indicating that typical listings are booked for 215 nights a year, the demand for short-term rentals remains strong.
The average daily rate for these rentals stands at $325, contributing to an average annual revenue of $70,000 per host. This performance is bolstered by the lenient regulatory environment, which has facilitated the expansion of the short-term rental sector. The market's stability and profitability are further enhanced by the option to transition properties to long-term rentals if needed, ensuring a consistent income stream. Overall, Barnstable's short-term rental market is a vibrant and lucrative segment of the local economy, particularly within the broader context of Cape Cod's $1.5 billion tourism industry.
Short-Term Rental Regulations in Barnstable, Massachusetts for 2024
Registration Requirements
- Annual Registration: Short-term rental owners must register their properties annually with the Town of Barnstable Health Division. This can be done online through the Town of Barnstable Online Permitting System or by mail.
- Registration Fee: The annual registration fee is $90 for the first unit and $25 for each additional unit on the same parcel. Fees can be paid online or by mailing a check payable to "Town of Barnstable".
Required Documents
- Rental Registration Application: An online form collecting information about the rental property, owner, and local contact person.
- Proof of Ownership: A copy of the current deed or other legal document demonstrating ownership of the rental property.
- Floor Plan: A detailed floor plan showing room dimensions, smoke and carbon monoxide detectors, and emergency evacuation routes.
- Local Contact Person Designation Form: Designation of a local contact person available 24/7 to respond to issues within one hour.
- Proof of Insurance: A Certificate of Insurance showing liability coverage of at least $1,000,000.
- State-Level Registration: Registration with the Massachusetts Department of Revenue (DOR) for tax collection purposes, with a copy of the DOR certificate included with the town application.
Health and Safety Inspections
- Initial and Periodic Inspections: Properties may undergo health and safety inspections when first registering and every few years thereafter.
Tax Requirements
- State and Local Excise Taxes: Operators must collect and remit a total of 14.45% in taxes, including a 5.7% state excise tax, a 6% local excise tax, and a 2.75% Cape Cod and Islands Water Protection Fund excise tax.
Occupancy Limits
- State and Local Limits: State law caps occupancy at 2 persons per bedroom, up to a maximum of 6 people total, excluding children under 12. Local limits may be more restrictive.
Rental Period and Exemptions
- Short-Term Rental Definition: Rentals of 31 days or less are considered short-term and subject to the room occupancy excise tax. Properties rented for 14 days or less per calendar year are exempt from state tax but may still be subject to local rules.
Compliance and Penalties
- Compliance Checks: The Health Division conducts periodic compliance checks and responds to complaints received through the short-term rental complaint hotline.
- Penalties for Non-Compliance: Failure to register can result in a non-criminal citation and a fine of $100.
Complaint Hotline
- 24/7 Complaint Hotline: Available online or by phone at 508-504-9779 for reporting any issues related to short-term rental properties.
Top Neighborhoods Generating Airbnb Revenue in Barnstable, Massachusetts
1. Hyannis
- Appeal: Hyannis is a central and vibrant area in Barnstable, known for its easy access to downtown dining, shopping, and the Hyannis harbor. Guests are attracted to its proximity to beaches, ferry terminals to Martha's Vineyard and Nantucket, and a variety of restaurants and shops. Properties like the "Harborside Haven - Walk to Beach, Ferry & Main St" and "Cozy Cape Cod Beach House With Central A/C" are highly rated for their location and amenities.
2. Hyannis Port
- Appeal: Hyannis Port is renowned for its stunning waterfront views and exclusive private beaches. The area is particularly appealing for those seeking a luxurious and romantic getaway, with properties like the "Beautiful Private Beach House" offering spectacular ocean views and private beach access.
3. Centerville
- Appeal: Centerville is favored for its family-friendly atmosphere and close proximity to Craigville Beach. Guests appreciate the quiet neighborhoods, spacious homes like "Midori On The Cape" and "Luxury House 0.25 mi from Craigville Beach," which offer amenities such as fenced yards, fire pits, and easy beach access.
4. Cotuit
- Appeal: Cotuit is a historic seaside village that attracts guests with its charming atmosphere, scenic ocean views, and amenities like private pools and fire pits. Properties such as the "Home in Cotuit" with its private gated pool and proximity to Ropes Beach are highly rated.
5. Barnstable Village
- Appeal: Barnstable Village offers a close-knit neighborhood experience with easy access to Barnstable Harbor, Millway Beach, and local restaurants. Guests enjoy the historic charm and the convenience of being close to various attractions, as seen in properties like "The Cape House - Beach House on Barnstable Harbor".
These neighborhoods are highly appealing due to their combination of scenic beauty, convenient locations, and a range of amenities that cater to different types of travelers, whether they are looking for a family vacation, a romantic getaway, or a relaxing beach stay.
Creating an Inviting Airbnb in Barnstable, Massachusetts: Design and Furnishing Tips
Define Your Property's Aesthetic
- Align your property's aesthetic with the local Cape Cod style, which often features a blend of modern and classic elements. Emphasize beachy, coastal aesthetics to reflect the area's maritime history and natural beauty.
Choose Functional and Comfortable Furniture
- Invest in high-quality, stylish furniture that prioritizes comfort and functionality. This includes comfortable bedding, such as new mattresses and designer linens, to ensure a restful stay for guests.
Incorporate Local Themes
- Use nautical themes with navy and white color schemes, and incorporate rustic wooden accents to reflect the local vibe. Light, airy furnishings paired with antiques can also enhance the historic character of the area.
Highlight Outdoor Spaces
- Since Barnstable is known for its pleasant coastal weather, emphasize outdoor spaces such as decks, patios, and fenced-in yards. These areas should be equipped with amenities like fire pits, grills, and outdoor seating to enhance guest experience.
Provide Fully-Equipped Kitchens
- Ensure that the kitchen is fully equipped with modern appliances, quality cookware, and essential amenities like dishwashers, microwaves, and coffee makers. This makes meal preparation easy and convenient for guests.
Add Cozy Touches
- Include cozy features such as fireplaces, which are particularly appealing during the cooler months. Also, consider adding amenities like central air conditioning and heated pools for year-round comfort.
Enhance with Local Amenities
- Offer amenities that reflect the local culture and activities, such as beach chairs, towels, bikes, paddle boards, and kayaks. These additions can make the stay more enjoyable and memorable for guests.
Consider Pet-Friendly Features
- Since many guests travel with pets, consider adding pet-friendly amenities like large fenced-in yards and pet-friendly furnishings to cater to this demographic.
Maintain Cleanliness and Hygiene
- Ensure that the property is meticulously maintained with extreme COVID sanitation protocols and regular deep cleanings to provide a clean and safe environment for guests.
Reflect the Neighborhood's Charm
- If your property is in neighborhoods like Hyannis, Barnstable Village, Centerville, or Osterville, incorporate elements that reflect the unique charm of these areas. For example, Hyannis properties can emphasize proximity to the ferry terminal and beaches, while Barnstable Village properties can highlight the charming New England atmosphere.
Discover Barnstable, Massachusetts: Local Attractions and Insider Tips
Historic Landmarks and Museums
- Sturgis Library: The oldest building housing a public library in the United States, built in 1644. It features the Lothrop Room, where religious services were held, and is a must-visit for history enthusiasts.
- Olde Colonial Courthouse: Now home to "Tales of Cape Cod," this historic courthouse is one of the oldest in the U.S. and played a significant role in American history, including protests against the King's bill of attainder in 1774.
- Coast Guard Heritage Museum: Located in the historic Customs house, this museum showcases the Cape’s military history and navigational information. It offers an informative audio tour and is ideal for those interested in military and nautical history.
Cultural and Entertainment Venues
- Barnstable Comedy Club: The oldest and longest-running community theater in Massachusetts, offering a variety of performances throughout the year.
- Trayser Museum: A former county custom house now housing a Coast Guard Heritage Museum, complete with a historic jail and inmates' graffiti dating back to 1690.
- Crocker Tavern: Built around 1754, this historic tavern served as a stagecoach stop, inn, and meeting place for American patriots during the Revolutionary War. It is listed in the National Register of Historic Places.
Outdoor Activities and Beaches
- Barnstable Harbor: Explore the waterfront, enjoy the beautiful beaches, and take part in Barnstable Harbor Ecotours, which provide insightful commentary on the area’s history and ecosystems.
- Sandy Neck Beach: An eight-mile long barrier beach in West Barnstable, known for its dramatic scenery and the 8,000-acre Great Marsh, perfect for canoeing and spotting wildlife.
- Craigville Beach and Kalmus Beach: Popular beaches with Kalmus Beach being a favorite among windsurfers.
Tours and Cruises
- Whale Watching Cruises: Departing from Barnstable and Hyannis, these cruises offer a chance to see whales in their natural habitat from mid-April to October.
- Bay Spirit Tours: Enjoy sunset or evening tours of Hyannis’s inner and outer harbor, complete with a full bar and historical insights into the region’s lighthouses.
- Hyannis Harbor Cruises: Learn about the history of Hyannis and landmarks like Great Island, the Kennedy Memorial, and Squaw Island on these 1-hour trips.
Insider Tips
- Best Time to Visit: For pleasant summer temperatures without the crowds, visit in May-June or September-October.
- Family-Friendly Activities: Enjoy indoor water parks like the one at Cape Codder Resort, Pirate Adventures Hyannis, and various outdoor activities suitable for all ages.
- Local Dining: Explore Hyannis Main Street for a variety of restaurants serving fresh seafood, Italian, Brazilian, Thai, and French cuisine.
- Cultural Districts: Visit the Barnstable Village Cultural District, which includes artists' studios, a third-generation blacksmith, and a monument to women's rights pioneer Mercy Otis Warren.
Additional Recommendations
- Cape Cod Rail Trail and Cap Cod Canal Bikeway: Popular cycling trails offering scenic views and historical significance.
- Salt Pond Visitor Center: A gateway to Cape Cod National Seashore's natural beauty, providing information on ecosystems, history, and recreational opportunities.
By sharing these attractions and tips, you can help your guests make the most of their visit to Barnstable, Massachusetts.
Practical Tips to Run a Successful Short-Term Rental Business in Barnstable, Massachusetts
To ensure a smooth and enjoyable experience for both you and your guests in Barnstable, Massachusetts, several practical tips can be implemented:
Noise Regulations and Quiet Hours
Inform your guests about the local noise regulations and quiet hours to maintain a respectful environment for neighbors. Include this information in your digital and physical house manual to avoid any misunderstandings.
Comprehensive House Manual
Create a detailed digital and physical house manual that includes essential instructions, such as Wi-Fi passwords, appliance usage, and emergency contact information. This manual should also outline the house rules, including noise regulations, to ensure guests are well-informed.
Simplified Check-in Process
Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide clear instructions on how to use the smart locks and include photos to help guests navigate the property.
Parking Instructions
Include detailed parking instructions with photos in your house manual to avoid confusion. This is particularly important in areas where parking can be limited or has specific regulations.
By implementing these measures, you can enhance the guest experience, reduce potential issues, and ensure your short-term rental business in Barnstable operates efficiently and successfully.
Here is a brief list of house cleaning services available in Barnstable, Massachusetts:
House Cleaning Services
The Maids
- Offers reliable and trustworthy housekeeping services using a 22-Step Healthy Touch Deep Cleaning System.
- Uses environmentally friendly cleaning products and HEPA filtration vacuums.
- Provides various cleaning plans, including deep cleaning, one-time cleaning, and recurring cleaning services.
Merry Maids of Cape Cod
- Provides comprehensive cleaning services with 40 years of experience.
- Offers services in Barnstable, Falmouth, Yarmouth, and Sandwich.
- Restores balance to your life by taking care of your home with proven processes.
Prestige Cleaning
- A locally owned and operated cleaning service serving Barnstable, Yarmouth, Falmouth, and Sandwich.
- Specializes in eco-friendly cleaning methods and products.
- Offers customized cleaning services, including vacation home maintenance, and is known for dependable and courteous staff.
Additional Options
- There are also other local house cleaning services listed on platforms like Care.com, which provide various cleaning options starting at $26/hr, with an average experience of 8 years for the cleaning services in the area.
Managing Short-Term Rentals in Barnstable, Massachusetts: Fees and Services
In Barnstable, Massachusetts, the management fees for short-term rentals can vary significantly, typically ranging from 10% to 30% of the rental revenue, depending on the level of service provided. Full-service management, which includes comprehensive tasks such as guest communication, marketing, and maintenance, tends to be on the higher end of this spectrum. In contrast, basic services that may only include listing and booking management might incur lower fees. Additionally, property owners may need to account for extra fees related to cleaning, repairs, or design services, which can further impact the overall cost of managing their short-term rental properties. Understanding these fee structures is crucial for property owners to effectively budget and maximize their rental income.