Vacation rentals on Cape Cod have been undergoing significant changes in the past 9 months.  Here is a quick update on the recent developments.  For more information we encourage you to visit the Massachusetts website of FAQs here 

What is a short-term rental?

According to the Commonwealth, "A short-term rental is an occupied property that is not a hotel, motel, lodging house or bed and breakfast establishment, where at least 1 room or unit is rented out by an operator through the use of advance reservations. A short-term rental includes an apartment, house, cottage, and condominium. It does not include property that is rented out through tenancies at will or month-to-month leases. It also does not include time-share property. A short-term rental is a rental that is not for more than 31 consecutive calendar days. The new law imposes state and local excises on short-term rentals of property for more than 14 days in a calendar year, starting July 1, 2019 for which a rental contract was entered into on or after January 1, 2019.  "

Taxes can be as much as 17.45%

All municipalities in the Commonwealth are subject to the 5.7% room occupancy tax.

Towns can choose to impose two additional taxes.  First is the local excise tax which can be anywhere from 0 to 6%.  Second is a Community Impact fee which can be anywhere from 0 to 3%.  Check the database here for your town or see below for all 15 Cape Towns.  Additionally the Cape Cod and Islands Water Protection Fund excise is 2.75% (currently no town on Nantucket or the Vineyard are subject to this).

Owner Requirements

Owners are now obligated to carry $1 million in liability insurance on each property.  Each property must be registered BY THE OWNER through MASS tax connect and tax must be remitted by the 20th of each month for the previous month's stays.  A full list of owner requirements is listed here.

What's being considered for the future?

As of right now (11/7/2019) Community Impact Fees have not been implemented in any Cape Cod Towns. However it behooves owners to read the First and Second Local Options of this FAQ from the State.  In these instances towns can add up to 3% Community Impact Fees if units are professionally managed.  If a tax of 17.45% sounds unreasonable, please consider speaking with your local representative to share your opinion.

Municipality	Current Rooms Tax Rate	Current Rooms Tax Effective Date	Pending Rooms Tax Rate	Pending Rooms Tax Effective Date	Short-term Rental Community Impact Fee Rate	Short-term Rental Community Impact Fee Effective Date	Short-term Rental Professionaly Managed Option	Short-term Rental included within 2-3 Family Home	Cape & Islands Water Protection Fund Tax Rate	Cape & Islands Water Protection Fund Effective Date
Barnstable	0.06	10/1/2010							0.0275	7/1/2019
Bourne	0.06	7/1/2019							0.0275	7/1/2019
Brewster	0.06	7/1/2010							0.0275	7/1/2019
Chatham	0.04	7/1/1988							0.0275	7/1/2019
Dennis	0.06	1/1/2020							0.0275	7/1/2019
Eastham	0.04	1/1/1987							0.0275	7/1/2019
Falmouth	0.05	1/1/2020							0.0275	7/1/2019
Harwich	0.04	1/1/1987							0.0275	7/1/2019
Mashpee	0.06	10/1/2019							0.0275	7/1/2019
Orleans	0.06	7/1/2019							0.0275	7/1/2019
Provincetown	0.06	7/1/2010							0.0275	7/1/2019
Sandwich	0.04	7/1/1986							0.0275	7/1/2019
Truro	0.04	12/1/1985							0.0275	7/1/2019
Wellfleet	0.04	7/1/1986							0.0275	7/1/2019
Yarmouth	0.06	7/1/2010							0.0275	7/1/2019

 

Curious about finding a rental management partner in Chatelain Real Estate, contact us today. 

Take a look at what is for sale throughout Cape Cod here. 

Looking for a vacation rental on Cape Cod, click here?

 

In October Barnstable County saw more of the fall slowdown with a significant reduction in new listings compared to this time last year.  Additionally new listings are down 5% year-to-date continuing the trend of historically low numbers of homes for sale.  Despite this the October market largely kept pace finishing with 5.7 months supply of inventory available.  Remember that 6 months is the magic number for a sustainable market between buyers and sellers.    Single family homes have not seen significant gains in median price since June and the affordability index has gained 20% since the start of the year signaling good news for buyers.  In addition continued low mortgage rates (~3.625% at time of writing) helps buyers looking to get into the market.  

  We will continue to keep our eyes on the amount of inventory as well as the months of supply available Cape-wide.  However we can't stress enough how the entire County is not representative of market niches.

 

Recent Market Summary

	Aug	Sept	Oct
Closed Sales	382	339	379
Inventory	2,082	2,090	1,975
Median Sales Price	$431K	$452K	$440K
Avg Days on Market	90	98	103
Avg % of Original Price	94%	94%	94%

September Review:

  The fall market is looking lackluster now that the September numbers are in.  With new listings, closings, and inventory down we did not see as significant an amount of activity in the market as this time last year.  With inventory countywide at a 6 month month level,  neither buyers nor sellers see a great advantage currently.  Not all markets are seeing this balance though so don't hesitate to check in if you are curious about a certain subset of the market (i.e. towns or price ranges).  Additionally, the lack of new listings may lead to a further drop in supply of inventory but fewer buyers in the market may not result in much change going into the usually slower holiday season.  Nationally a strong economy and low mortgage rates are helping to keep the real estate market active.

For more market data check out our blog category Real Estate Trends.

Recent Market Summary

	July	Aug	Sept
Closed Sales	341	382	339
Inventory	2,044	2,082	2,090
Median Sales Price	$435K	$431K	$452K
Avg Days on Market	101	90	98
Avg % of Original Price	94%	94%	94%

 

Check out these two blogs for more valuable insight into real estate on Cape Cod

 

5 Things to do before listing your home	Shellfish Season is Here!

Fall is a great time for shellfishing on Cape Cod.  The water is still relatively warm and the weather, if you aren't in the middle of a Nor'Easter, is generally crisp and beautiful.  A lot reopens in October and November so time to get the rake out of the shed and start digging.

Each town has unique regulations and areas that are open and closed depending on the season.  Check out the listings below for more details on your town.  We also provide one or two suggestions of our favorite places but we suggest you find your own!

Town information	Our Favorite Spot (but check for seasonal closures)
Bourne	Buttermilk Bay
Sandwich	Mill Creek
Falmouth	Waquoit Bay
Mashpee	Great River south of the landing
Barnstable	Scudder Lane or West Bay
Yarmouth	Gray's Beach
Dennis	Cove Rd (West Dennis Side)
Brewster	Ellis Landing
Harwich	Wychmere Harbor
Chatham	Mill Creek or Oyster Pond
Orleans	Little Pleasant Bay
Eastham	Boat Meadow Creek
Wellfleet	Indian Neck or Chipman's Cove
Truro	Pamet River
Provincetown	West of the Breakwater

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Photo courtesy of C. Dannhauser

The Cape Cod real estate market has heated back up this fall as many second home owners list their homes after the beach season.  Here is our list of 5 things to do before you list your home.

Fix Those Long Overdue Punch-list Items

 We always come back to this because it can't be emphasized enough.  Little repairs go a long way.  Replace sprung window sashes, plane doors that are sticking, fix locks that don't quite work correctly (here is a lock mid-adjustment in a settling home).  There is a reason why you haven't done these things yourself (that reminds me, I need to fix that sticking door!) so imagine how nice it would be as a buyer to walk into a potential home with minimal punch-list items!  These small repairs can often payback in dividends and ease of negotiation further down the road.

Have your Septic Inspected and Serviced

It has to happen to convey a property so getting it done up front is a big help.  Also buyers are keen on hearing the words "Title V in hand" when walking in to see your home. Besides, it is best to be prepared and address an issue with the septic prior to being a hitch during negotiations.

Have Your Chimney Cleaned and Gas Fireplaces Serviced

We could tell you horror stories about sellers waiting until the final walk-through to light a pilot or test a gas insert.  Needless to say it all end with more anxiety and cost for the seller than needed.  Even if you never use a wood-fire chimney you should get it inspected (and cleaned if needed) to reassure potential buyers of the status of this potentially costly feature.

Get a Pest Inspection

Just because you have never seen anything yourself doesn't mean that a home inspector won't find evidence of termites, mice or other pests.  By having an inspection done before listing property the savvy seller will be able to address any problems before they become a negotiating hangup further down the road.

Service the Heating and Air Conditioning Systems

Too often we overlook little problems in these systems in our own homes, but buyers are enticed when major components like heating and cooling just work, full stop.  An older system with a recent inspection can reassure a buyer enough to make an offer and demonstrates that other parts of the home are likely in good order too.

So what are you waiting for?  Go and get your home ready to sell, or, do these things anyway and rest easy in the knowledge that your home is in excellent working order and you'll be able to enjoy it for many years to come.  If you are thinking of selling contact us today for a conversation about how your home may perform in today's market and for help finding excellent local vendors who can help you with these five items.

 

August Review:

   The trends in the Cape Cod market this year seem to be delayed approximately a month compared to last year.  In other words, August this year compares more closely with July last year.  We felt this in the Spring and now again in the late Summer as the August data seemingly reflects what is typically the July slowdown (whereas July was as busy as June the year before).  We see this normal seasonal slowdown reflected in the chart at right in that closed sales were up while new listings and inventory were all down.  We don't think it is worth ringing any alarm bells but the lack of new listings in August could lead to a more competitive market for buyers in the fall.  The most relevant factors influencing the real estate market right now are: historically low interest rates, overall economic trends looking favorable (at least in the near term), Barnstable County inventory at a healthy level of 6 months.  On another note we were pleased to see the affordability index move towards improving affordability in the single family home market in August, an increase in affordability of 7.5% compared to this time last year.  For more market data check out our blog category Real Estate Trends.

Recent Market Summary

	June	July	Aug
Closed Sales	361	341	382
Inventory	2,067	2,044	2,082
Median Sales Price	$450K	$435K	$431K
Avg Days on Market	106	101	90
Avg % of Original Price	95%	94%	94%

 

Check out these two blogs for more valuable insight into real estate on Cape Cod

 

Storm Preparation on Cape Cod	Our Take: Are sharks really taking a bite out of the Cod Cod Summer Rental Market?

With the 2019 hurricane season in full swing and the memory of the bizarre July Tornadoes still fresh in our minds, preparing for a storm should be a concern before winter hits.  Late summer and fall hurricanes do pose serious concerns for the Cape, winter Nor'easters are often just as damaging with the additional possibility of freezing temperatures.  To make sure you and your house are prepared to weather any storm here are some specific recommendations to consider.  

Landscaping

  Trees are a major threat to structures, cars, and people in storms.  In particular Cape Cod has a lot of pitch pines that tend to snap off large limbs or drop entire tops in large wind events.  If you have them, make sure they are far away from your house so that, if they do fall, they won't land on anything important (see right.  This was the 'Freaky Friday' storm in December 2005.  Luckily no one was hurt but the driver had only returned home ten minutes before).  Obviously it is important to take a good look at any tree that is close to a structure, not just pines.  Additionally limbs that overhang the roof cause more lichen to grow, shortening its life, and leaves and needles clog up gutters adding to drainage issues in heavy rains and ice issues in the winter.

Make a prep bag

  We are big fans of self reliance.  To that end preparing for the worst is a good way to make the best of a bad situation.  Have a grab bag ready in case you lose power for several days.  Here is the FEMA website with good instructions too. Crank flashlights and radios are great since they don't need batteries, also make sure you have some way to eat.  Your gas may work in a storm but your electric sparker won't so don't forget matches.  Also have enough canned food in the pantry for a few days in case cooking isn't an option.  Also if you don't want to live rugged at home without power, your bag should include what you need at a shelter, bedding, toiletries, medications and some personal items (games and books!) will make smart additions to a prep bag.  During major storms emergency services are already stretched to the max so make sure to get to a shelter before travel gets dangerous or you become an emergency yourself.  In winter this becomes a serious decision since power loss often means loss of heat as well.  If you have a working fireplace or wood stove stock up on plenty of good dry wood.  And get out all those ugly old wool sweaters and down comforters!  

Prepare your house

If you are planning on being out of town or leaving your home for a shelter, turn off the water.  This is true even in the summer but especially in the winter.  We can't stress this enough.  With no heat in your house there is nothing keeping your pipes from freezing and turning your house into a skating rink.  Even if your pipes do burst, with the water off, there is a limited amount of damage that can be done.  Boarding up windows is a good idea for people who leave for long periods of time.  We see it less and less these days since windows are more durable, but it won't hurt.  If you aren't boarding up and high winds are expected, consider taping your windows or drape sheets against the inside to reduce broken glass damage.  Mind you, those sheets will blow away if a window breaks but they'll also help keep the glass contained.  Here is a fun anecdote.  Off the coast of Maine, where many small private islands exist with seasonal cottages, many people intentionally leave their door unlocked.  Why you may ask?  This not-so-secret secret is well known among the fishing and maritime community as a means of survival.  Homeowners leave food and blankets on the kitchen table in case a stranded fisherman (or a wrecked one) needs some help.  Our favorite part of this story, no one betrays this trust and loots - ever.  The lesson here is don't forget to help your neighbors.

We hope you found these tips helpful.  If you need recommendations for good local landscapers or tree professionals please contact us. 

 

Check out these open houses on Cape Cod this weekend.  If you are interested in any of these homes or to learn more about any other homes for sale on the Cape, contact us today.  Chatelain Real Estate agents are known for the excellent quality of service and professionalism they offer their clients and would love to help you find your dream home on Cape Cod.

 

109 Nottingham Drive, Yarmouth Port | Saturday 10-12

Bring your personal touches and enjoy one of the most sought after Yarmouth Port locations. This exceptionally spacious home offers one floor living and plenty of room for guests. The setting is private but not remote. The living room opens to the deck and has a fireplace. The kitchen and breakfast nook next to the formal dining room allow for easy entertaining. The den/home office is set apart for quiet use. The first floor master bedroom with en suite bath opens to the deck for morning coffee. The other two bedrooms each have sitting areas. The home is nicely sited on the lot. An opportunity not to be missed.

 

61 Cranberry Lane, South Yarmouth | Saturday 1-3

Charming 3 bedroom situated on .69 acres of privacy in a very convenient and sought after neighborhood with access to the Bass River. It offers warm wood accents, cathedral ceilings, large windows, sparkling hardwood floors and open floor plan. The living areas have vaulted ceilings. The living room flows into the dining and kitchen that has beautiful maple cabinets and new gas stove. The master bedroom has an en suite bath. The full basement is a walk out with a finished room that makes a great office or studio with plenty of light. Upgrades within 2 years include roof, siding, paint, water heater, door. Septic upgrade underway. A real gem.

37 Uncle Stephens Road, West Dennis | Sunday 10-12

A classic Cape Cod dune shack located directly on Nantucket Sound. Step in and enjoy the sun and sand or renovate and build your dream. Opportunities abound on this truly unique property with infinite potential.

 

 

 

 

15 Ocean Ave, Harwich Port | Sunday 1-3

This is an unbeatable sought-after location that features charming cottages, which share a love for summer fun. Nantucket Sound is merely 140 paces away and Harwich Port village center is less than a quarter mile for fine dining, shopping, art galleries, and more. This home an arts and crafts style bungalow renovated in 2013 , combines historic features, such as built-ins, charming decorative arched fireplace, carved brick mantle and dark wooden beams with modern bathrooms, kitchen, and infrastructure upgrades. The ocean is viewable from both up and downstairs porches and the master bedroom. It is a larger home with adequate room for large gatherings. Long standing solid rental history is available. The newly upgraded septic system makes this ready to go.

Check out these open houses on Cape Cod this weekend.  If you are interested in any of these homes or to learn more about any other homes for sale on the Cape, contact us today.  Chatelain Real Estate agents are known for the excellent quality of service and professionalism they offer their clients and would love to help you find your dream home on Cape Cod.

 

Saturday 10-12 | 15 Ocean Avenue, Harwich Port

This is an unbeatable sought-after location that features charming cottages, which share a love for summer fun. Nantucket Sound is merely 140 paces away and Harwich Port village center is less than a quarter mile for fine dining, shopping, art galleries, and more. This home an arts and crafts style bungalow renovated in 2013, combines historic features, such as built-ins, charming decorative arched fireplace, carved brick mantle and dark wooden beams with modern bathrooms, kitchen, and infrastructure upgrades. The ocean is viewable from both up and downstairs porches and the master bedroom. It is a larger home with adequate room for large gatherings. Long standing solid rental history is available. The newly upgraded septic system makes this ready to go.

 

Saturday 10-12 | 61 Cranberry Lane, South Yarmouth *First Look*

So new to market it isn't even listed in MLS yet!  Get a first look on Saturday!

 

 

 

 

 

Saturday 1-3 | 109 Nottingham Drive, Yarmouth Port

Bring your personal touches and enjoy one of the most sought after Yarmouth Port locations. This exceptionally spacious home offers one floor living and plenty of room for guests. The setting is private but not remote. The living room opens to the deck and has a fireplace. The kitchen and breakfast nook next to the formal dining room allow for easy entertaining. The den/home office is set apart for quiet use. The first floor master bedroom with en suite bath opens to the deck for morning coffee. The other two bedrooms each have sitting areas. The home is nicely sited on the lot. An opportunity not to be missed.

 

Check out these open houses on Cape Cod this weekend.  If you are interested in any of these homes or to learn more about any other homes for sale on the Cape, contact us today.  Chatelain Real Estate agents are known for the excellent quality of service and professionalism they offer their clients and would love to help you find your dream home on Cape Cod.

Saturday 10-12 | 37 Uncle Stephens Road, West Dennis

A classic Cape Cod dune shack located directly on Nantucket Sound. Step in and enjoy the sun and sand or renovate and build your dream. Opportunities abound on this truly unique property with infinite potential.

 

 

 

 

Saturday 1-3 | 15 Ocean Avenue, Harwich Port

This is an unbeatable sought-after location that features charming cottages, which share a love for summer fun. Nantucket Sound is merely 140 paces away and Harwich Port village center is less than a quarter mile for fine dining, shopping, art galleries, and more. This home an arts and crafts style bungalow renovated in 2013, combines historic features, such as built-ins, charming decorative arched fireplace, carved brick mantle and dark wooden beams with modern bathrooms, kitchen, and infrastructure upgrades. The ocean is viewable from both up and downstairs porches and the master bedroom. It is a larger home with adequate room for large gatherings. Long standing solid rental history is available. The newly upgraded septic system makes this ready to go.