Although rental bookings are off 10 percent in some areas of the Cape, renters seeking this view of Nauset Beach in Chatham may not see lower prices.
The summer is getting off TO a lukewarm start for Cape Cod’s vacation rental market.
Rental property bookings are off by as much as 10 percent in some spots, and vacationers have more properties from which to choose.
The wider selection is driving renters to seek steep discounts and other perks, but property owners are reluctant to drastically cut rents.
“The buyers think they can steal a property, and they can’t. And the same thing is true on the rental side. They’re looking for a deal in rentals and maybe they’ll succeed, but there’s no guarantee,” said Lynette Helms, owner of Real Estate Assoc. in Falmouth.
The sluggish economy isn’t helping, with many vacationers deciding to skip or shorten their stays on the Cape.
Helms said her company has 33 fewer reservations than last year, but income is up by about $7,000 because nearly all of the high-end waterfront properties with weekly rates of $3,000 and up are booked.
At Kinlin Grover GMAC, reservations are off by about 7.5 percent. The company has fewer than 1,200 reservations at this point compared to last year when there were 1,298, according to Bett McCarthy, Kinlin Grover’s regional vice president. In June, there were 85 reservations, compared to last June’s 124, and 139 during the same month in 2006.
“It started up really good, but it’s really slowed down,” said McCarthy.
One reason that reservations may be off is that property owners are also facing stiff competition. More homeowners, facing skyrocketing insurance costs and other ex-penses, are making their residences available. Helms’ company has seen a 16 percent jump in rental listings from last year.
“We’re seeing owners who never rented before who are looking for rental [income] to cover increased living expenses,” said Helms.
Dick Eble, co-owner of capecodrentals.com, said he’s also seen a 16 percent increase in rental listings. But he noted that most of those rentals were previously listed with another company.
Martha Murray, owner of Coldwell Banker Martha Murray Real Estate in Dennis, acknowledged that business is slower but not dramatically so. During the last Saturday of June, the company had more than 20 reservations for one week.
Her company recently got a listing for a West Dennis property the owner was renting for the first time. Because of its desirable location across from the beach, it’s practically filled already, Murray said.
Bargain Hunters
But visitors push for bargains if they find vacancies. Just a week ago, Murray got a call from a vacationer who wanted to rent a three-bedroom home for only $500 during the end of June. She told him the minimum he would pay is $700.
“They try for it [discounts]. We have so few things left for the prime weeks that we’ll probably say no to them,” she said.
Visitors are calling on a Thursday trying to get a bargain for the following week, Eble said.
“A lot of last-minute tenants are saying, ‘It’s not rented for this week. What will the owner do for us?'” Eble said.
Some agents think that the pool of would-be renters has shrunk because many repeat visitors purchased homes when the housing market was booming.
“A lot of people who came here and rented previously bought properties, and some of those people are turning around and deciding to rent,” McCarthy said.
