I would stay along the National Seashore, anywhere from Chatham to Provincetown. This would also include Orleans, Truro and Wellfleet. Chatham and Provincetown have the most to do outside of the beach.

Might I recommend Martha's Vineyard though? It's an island off the Cape and I think it's a great place to spend a week. You can find a nice 2-3 bedroom house for around $2K for the week.

Check out vrbo.com for rental choices

weneedavacation.com

I have just seen a nice little cottage in Chatham - do you think that area would be a good choice?

Love Chatham, great town. Is the cottage close to town or beach? One thing to watch out for is whether the cottage includes linens and washer/dryer.

Keep in mind that the water will be warmer on the Bay and the Sound as oppossed to the Atlantic Ocean. Chatham is a terrifc choice, pretty town with shops and restaurants, and access to all three bodies of water nearby.

As Kealalani mentioned, check to see if you are responsible for cleaning, linens, etc. or if the owners have a service that will do that for you. I have always found that spending the whole last day getting the place in order, no sand on the floors, clean refrigerator, stove dishes, old food taken out, linens washed, etc. did not make for a good end to the vacation.

There are linens and a washer / dryer included- I wouldn't book anywhere without one! Thanks for your help everyone - Chatham sounds like a good bet..

You'd be surprised what might not be included on some mainland beach properties. Chatham sounds like it will be perfect for you. Great town, great home base to explore and return to a vibrant yet quaint community. Gives plenty of opportunities for family time and your kids to do their own thing too.

If there is a baseball game in town check it out! Boston Pops plays in Hyannis on the 7th of August which could be a nice look towards the other side of the cape. Otherwise I would just head to the outercape and chatham areas and savour and relax at your cottage.

Chatham's great. The Cape Cod Baseball League has games all over the Cape through the month of July and part of August. The Chatham A's have their own hometown field (new) and it's beautiful. The Chatham Band plays every Friday night at 8:00 at Kate Gould Park downtown; drop your chairs or blankets off early in the afternoon to 'mark your spot', enjoy the little shops and grab a bit before the concert. You can see seals come in with the fishermen at Chatham Fish Pier. Just watching the day's catch at the Fish Pier is amazing. You can take a high speed ferry to Nantucket from nearby Harwichport too. Have a fun time; it's a pretty part of the Cape.