Thinking about a Harwich beach house that helps pay for itself? You are not alone. Cape Cod draws steady summer demand, but returns depend on smart planning, realistic comps, and a month-by-month view of the season. In this guide, you will learn how to model income, which expenses to include, what local rules to confirm, and how to stress test your numbers so you can invest with confidence. Let’s dive in.
Harwich demand and seasonality
Harwich sits in the heart of Cape Cod with village centers like Harwich Port, West Harwich, and Harwich Center. Beaches, Pleasant Bay access, boating, bike trails, and family-friendly tourism drive vacation interest. Demand peaks June through August, with July often strongest. May and September are the shoulder season with solid but lower activity. October through April is typically quiet unless you target monthly off-season renters or niche winter weeks.
The key takeaway is simple. Annual income is concentrated in two to four months. A reliable projection uses monthly average daily rates and occupancy, not a single summer rate multiplied across the year. Data platforms like AirDNA can help you view historical ADR and occupancy by month for Harwich neighborhoods so you can model an accurate curve.
What drives revenue: ADR and occupancy
Your topline depends on achievable nightly rates and how many nights you book each month. To build your assumptions, use local sources and compare like-for-like homes.
- Review market analytics for Harwich villages on AirDNA to see monthly ADR and occupancy trends by listing type.
- Sample comparable listings on Airbnb and Vrbo to cross-check nightly rates and calendar availability. Match bedroom count, location, amenities, and design level.
- Call local property managers for typical week-by-week rates and occupancy during peak and shoulder months.
- Consider special-event weeks and holidays that can lift rates or fill gaps.
Tip: Track July and August separately from May, June, and September. Then decide how you will handle October through April. You may choose to offer monthly winter rentals at discounted rates or keep the property for owner use.
All-in expenses to budget in Harwich
Build a full expense picture so your net is realistic. Typical line items for Cape Cod include:
- Platform and booking fees: usually 3 to 15 percent per booking depending on the marketplace.
- Management fees: 15 to 35 percent of gross revenue for full-service management.
- Cleaning and turnover: about 75 to 350 dollars per turnover or more for larger homes. Weekly summer turnovers add up fast.
- Utilities: electric, gas, water or sewer, internet, and cable. Many owners see 5 to 10 percent of gross revenue.
- Supplies and consumables: linens, toiletries, and basics. Budget a per-stay amount.
- Routine maintenance and repairs: 5 to 10 percent of gross revenue per year. Older homes may need more.
- Property insurance: coastal premiums can be higher. Get an address-specific quote.
- Flood insurance: confirm FEMA flood zone status. Policies can be a significant cost for near-water properties.
- Property taxes and assessments: verify with the Town of Harwich Assessor.
- HOA fees if applicable: fixed monthly or annual.
- Capital reserves: set aside 5 to 10 percent of gross revenue or a fixed annual amount for replacements.
- Mortgage principal and interest: include for cash flow analysis but exclude from NOI for cap rate.
Availability of cleaning crews and contractors during peak weeks can affect cost and schedule. Build a buffer for labor constraints.
Taxes, permits, and compliance in Harwich
Before you count on income, verify local rules and registration. Short-term rentals often require steps with town officials and the state.
- Check the Town of Harwich for current short-term rental registration, inspections, occupancy limits, and any parking or trash requirements. Contact the Town Clerk, Board of Health, or Building Department as needed.
- Massachusetts applies a room occupancy excise tax. Many municipalities also add a local excise. Review registration and remittance guidance with the Massachusetts Department of Revenue.
- Some platforms may collect certain taxes, but hosts are responsible for compliance. Confirm what is collected and what you must remit.
- Standard homeowners policies may not cover short-term rental activity. Ask about STR-specific coverage and liability limits. For waterfront homes, review both NFIP and private flood options and check your address on the FEMA Flood Map Service Center.
- Understand zoning, quiet hours, and occupancy rules to avoid neighbor issues.
Regulations can change. Build a compliance checklist early in your process and reconfirm before you purchase.
Your step-by-step ROI calculator
Use a simple, repeatable method to project income, net operating income, and returns.
1) Gather property inputs
- Purchase price and planned financing terms
- Property tax bill and any HOA dues
- Insurance and flood insurance quotes
- Furnishing and setup budget
- Monthly ADR by month, January through December
- Monthly occupancy rates by month, January through December
- Cleaning fee per turnover and estimated turnovers
- Utilities and supplies estimates
- Management fee percentage if using a manager
- Platform or booking fees
2) Model monthly revenue
- For each month: nights_booked = nights_in_month × occupancy_rate
- Monthly revenue = nights_booked × monthly_ADR
- Gross Potential Rental Income for the year = sum of monthly revenue across 12 months
3) Convert gross to effective income
- Effective Gross Income = GPRI minus platform fees and any discounts or promotions, and minus taxes collected that you do not retain
4) Subtract operating expenses
- Net Operating Income = EGI minus management, cleaning, utilities, maintenance, insurance, property taxes, HOA, and supplies. Do not include mortgage principal and interest in NOI.
5) Evaluate returns
- Cap Rate = NOI divided by purchase_price
- If financed: Annual cash flow before tax = NOI minus annual debt service
- Cash-on-Cash Return = annual cash flow before tax divided by total cash invested
- Break-even Occupancy for a given ADR = (annual fixed expenses plus desired income) divided by (ADR × 365 minus variable costs per occupied night)
6) Organize your worksheet
Create a monthly table with columns for Month, Nights in month, ADR, Occupancy percent, Nights booked, and Monthly revenue. Then list expenses by category and subtotal to NOI. Finish with debt service and cash-on-cash.
Run sensitivity scenarios
Seasonal markets can swing. Test your assumptions and make decisions with a range, not a single number.
- Best case: higher ADR and strong July to August occupancy, solid shoulder season, stable cleaning and insurance costs.
- Base case: current comps and manager guidance for ADR and occupancy, average cleaning and utilities, typical insurance quotes.
- Conservative case: ADR down 10 to 20 percent, occupancy lower in shoulders, insurance and flood premiums higher, a few extra turnovers.
This range shows how regulatory changes, weather, or competition could affect your cash flow.
STR vs long-term rental
Some Harwich homes may perform better as winter long-term rentals with a summer pivot, while others are purely seasonal.
- Seasonal STR: potentially higher gross in summer, more variance, more active management, and more cleaning and marketing costs.
- Long-term rental: steady monthly income, lower volatility, fewer turnovers, and typically lower gross revenue.
Model both paths for the same property. Compare Cap Rate and Cash-on-Cash under each scenario. The right answer depends on your goals, tolerance for hands-on work, and the home’s location and amenities.
Self-manage or hire a manager
A professional manager can boost guest experience and occupancy, but fees reduce net income.
- Self-manage: lower direct costs, more time commitment, and you handle marketing, guest communication, turnovers, and vendors.
- Full-service management: typically 15 to 35 percent of gross revenue. You gain local oversight, dynamic pricing, vendor coordination, and potential occupancy lift.
Run your numbers both ways. In peak weeks, reliable turnovers can protect reviews and repeat bookings.
Local risks to watch
- Regulatory risk: local STR rules or higher excise taxes can change returns. Monitor the Town of Harwich for updates.
- Climate and coastal risk: storms, flooding, and rising insurance costs can affect both operating expenses and insurability. Check addresses on the FEMA Flood Map Service Center.
- Market competition: Cape Cod’s concentration of vacation homes can pressure off-season demand and ADR.
- Labor constraints: cleaning and maintenance availability during turn days can be tight. Book key vendors early and price realistically.
Checklist: what to gather for a Harwich property
- Exact address and parcel details to confirm zoning, taxes, and flood zone
- At least 6 to 12 comparable STR listings within about a mile, matching size and amenities
- Monthly ADR and occupancy for the last 2 to 3 years from AirDNA or local managers
- Town STR registration requirements, inspection items, and any occupancy or parking rules from the Town of Harwich
- Current property tax bill and any pending assessments
- Insurance and flood quotes for that specific address
- Health and safety upgrade costs to meet inspection standards
- Financing terms if using a mortgage, including expected underwriting treatment of STR income
Ready to evaluate a specific Harwich home?
You do not need to guess. Combine local comps, monthly seasonality, and a full expense model to see a clear picture of ROI. If you want a hands-on, Cape-native advisor to help you source, evaluate, or position a seasonal rental purchase, reach out to Laurie Miller for a brief consult.
FAQs
How much can a Harwich short-term rental make per year?
- It depends on monthly ADR and occupancy by season. Model best, base, and conservative cases using local comps and AirDNA data since most income lands in two to four summer months.
Does Harwich allow short-term rentals and what permits are required?
- Verify current registration, inspections, occupancy limits, and any trash or parking rules with the Town of Harwich through the Town Clerk, Board of Health, or Building Department.
What taxes apply to Harwich short-term rentals?
- Massachusetts has a room occupancy excise and many towns add a local excise. Review requirements and registration with the Massachusetts Department of Revenue and confirm any platform tax collection details.
How should I budget insurance and flood coverage on Cape Cod?
- Get quotes from local brokers for STR coverage and review your address on the FEMA Flood Map Service Center. Coastal premiums are often higher and availability can change.
Is a Harwich seasonal rental better than a long-term rental?
- Seasonal STRs may generate higher summer gross but have more variance and workload. Long-term rentals offer stability and fewer turnovers. Compare cap rate and cash-on-cash under both.
What is a good break-even occupancy target for Harwich?
- Use the formula: break-even occupancy equals (annual fixed expenses plus desired income) divided by (ADR times 365 minus variable cost per occupied night). Plug in your own ADR and cost estimates.
