If you own a vacation home on Cape Cod, you’re sitting on a valuable asset — but are you getting the most out of it?
With more short-term rentals flooding the Cape every year, it’s not enough to simply offer a cute cottage near the beach. Renters are expecting more: modern comforts, stylish spaces, and the feeling of a true coastal retreat. That’s why a thoughtful Cape Cod vacation home renovation isn’t just about aesthetics — it’s a business decision that directly impacts your rental income and long-term property value.
In this 2025 guide, we’ll cover the highest-ROI renovations you can make, budgeting tips, what renters are really looking for, and how to stand out in a crowded rental market.
🧭 Why You Should Renovate Your Cape Cod Vacation Home
Whether your property is in Chatham, Harwich, Mashpee, or Falmouth, the vacation rental market is evolving. According to CapeHost.ai, the number of active vacation rental listings on the Cape has grown by over 30% since 2022 — and with more inventory comes more competition.
Today’s renters are browsing platforms like Airbnb and Vrbo with high expectations. Homes with upgraded kitchens, extra bathrooms, strong Wi-Fi, and beautiful outdoor spaces consistently rank higher and earn better reviews.
If your Cape property feels a little outdated, it may be time to invest in a Cape Cod vacation home renovation that not only enhances your guests’ experience but also boosts your bottom line.
🛠️ Best Renovation Projects to Boost Rental Value
Here are the upgrades that consistently offer the best return on investment (ROI) for vacation rental owners on Cape Cod:
🍽️ 1. Kitchen Remodel: High Impact, High ROI
The kitchen is often the heart of a rental — especially for families or longer-term guests. As part of your Cape Cod vacation home renovation, updating the kitchen can make your listing stand out in photos and create a better guest experience with a modern, clean, and functional design.
Top renter-friendly kitchen upgrades:
-
White or light quartz countertops
-
Soft-close cabinets in coastal colors
-
Stainless steel appliances
-
Open shelving or custom storage
-
Energy-efficient lighting
💡 Read more: Kitchen Remodel Cost Cape Cod [2025 Guide] »
🚿 2. Add a Second Bathroom (or Half Bath)
One of the biggest turn-offs for rental guests? A one-bathroom listing. If you can add a second full or even half bath, you’ll open the door to larger parties and families — increasing your potential bookings and allowing for higher rates.
This is one of the most strategic Cape Cod vacation home renovation moves for both guest comfort and long-term value.
🔒 3. Hurricane Windows: Safety & Energy Efficiency
Renters — especially those booking in spring or fall — care about climate control and noise insulation. Plus, second-home owners want peace of mind when they’re not around. Installing hurricane windows is a win-win:
-
Reduced energy costs
-
Lower insurance premiums
-
Protection during Nor’easters and storms
🧱 Check out our full guide: Hurricane Windows Cape Cod: Are They Worth It? »
🪟 4. Modernize the Living Spaces
Even small updates — like new flooring, fresh paint, and recessed lighting — can transform a dated Cape interior into a warm, beachy retreat.
Some simple but high-impact upgrades:
-
Replace worn carpets with luxury vinyl plank (LVP)
-
Add shiplap or board-and-batten accents
-
Install smart thermostats or locks for guest ease
-
Use layered lighting for ambiance
📸 Tip: These updates will help you take better listing photos, which is one of the biggest predictors of bookings.
🌅 5. Outdoor Living Areas Make a Big Difference
Cape Cod guests love to spend time outside. If your property has room for a deck, patio, or screened porch — use it! Even a small bistro table and string lights can turn a plain yard into an evening retreat.
For maximum ROI on your Cape Cod vacation home renovation, consider:
-
Wraparound decks or platform decks
-
Built-in benches or outdoor showers
-
Gas fire pits or small grilling areas
-
Low-maintenance decking (like AZEK or Trex)
🏡 Read: Best Deck Material for Cape Cod’s Coastal Climate »
💼 Renovation Tips for Rental-Focused Second Homes
-
Think seasonally. Is your rental optimized for year-round bookings or just summer?
-
Keep furniture and finishes durable. Coastal humidity and salt wear down cheap materials quickly.
-
Use local contractors. They understand Cape Cod building codes, weather, and town-specific zoning.
-
Upgrade Wi-Fi and streaming options. Yes, people still want Netflix at the beach.
📊 Budgeting & ROI: What to Expect
Most homeowners invest $25K–$100K+ into Cape Cod vacation home renovation projects depending on scope. Here’s how returns typically break down:
| Renovation Type | Est. Cost (2025) | ROI as Rental | ROI as Resale |
|---|---|---|---|
| Kitchen Remodel | $45K–$90K | High | High |
| Second Bathroom | $15K–$30K | High | Medium–High |
| New Deck/Outdoor Space | $20K–$40K | Medium–High | High |
| Hurricane Windows | $12K–$25K | Medium | High |
| Flooring + Paint | $5K–$15K | Medium | Medium |
📌 Always plan a 10–15% contingency budget for surprises, especially in older Cape homes.
📍 Locations Seeing High Return from Renovations
While Cape Cod vacation home renovation is valuable across the region, here are towns seeing the best ROI in 2025:
-
Chatham: High nightly rental rates, strong luxury demand
-
Falmouth & Mashpee: Great mix of families and couples
-
Dennisport & Harwich: Popular for weekly rentals, great for kitchen upgrades
-
Wellfleet & Truro: Guests value unique upgrades and eco-friendly materials
💬 Final Thoughts
Renovating your Cape Cod vacation home isn’t just about creating a prettier space — it’s about creating value. By prioritizing the upgrades renters care about most, you’ll increase your bookings, improve reviews, and enjoy a better ROI whether you sell, refinance, or keep renting it for years to come.
📞 Let’s Renovate Your Cape Cod Vacation Home
At AJ Carpentry, we specialize in Cape Cod vacation home renovation projects that blend beauty, comfort, and investment strategy. From custom decks and window upgrades to complete kitchen remodels, we bring expert craftsmanship and local experience to every project.