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Florida Real Estate Wire - Real Estate News > Florida News by Region > Cape Coral Intensifies Vacation Rental Crackdown Amidst Fee Hike Debate

Florida News by Region

Cape Coral Intensifies Vacation Rental Crackdown Amidst Fee Hike Debate

August 11, 2025
Cape Coral skyline overlooking waterfront homes.
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Cape Coral is intensifying its efforts to regulate vacation rentals, with city officials exploring new rules and significant fee increases to address widespread non-compliance. The crackdown comes after inspectors discovered hundreds of short-term rentals violating the city’s minimum week-long stay ordinance on popular booking platforms.

Crackdown on Non-Compliance

City inspectors have identified over 200 vacation rental properties listed on sites like Airbnb and VRBO that are not adhering to Cape Coral’s ordinance requiring a minimum seven-day stay. This discovery has prompted a city-wide review of current regulations and enforcement strategies.

Proposed Fee Hike and Community Reaction

A proposal to raise the annual registration fee for vacation rentals from $35 to $600 has generated considerable backlash from local residents. Many expressed concerns that such a steep increase could negatively impact the local economy, which relies on tourism facilitated by these rentals. "How are you trying to run people out when our economy needs to grow?" questioned one resident named Mike. Another local, Aiden, deemed the proposed $600 fee "outrageous," suggesting a more reasonable increase to around $100 would be acceptable.

Exploring New Regulatory Models

Council member Jennifer Nelson-Lastra is spearheading a task force aimed at creating a more equitable system for both residents and visitors. The group is considering adopting a model similar to Sanibel’s, which structures fees based on the type of rental, with a maximum fee of $300. Nelson-Lastra emphasized the importance of vacation rentals in housing tourists, given the city’s limited hotel capacity. "We do not have a lot of hotels, so we really rely on the vacation rental owners and those properties to be able to house all of our tourists every year," she stated.

Enforcement and Future Guidelines

Nelson-Lastra advocates for strict enforcement against businesses that disregard regulations. "If you look at these properties, they’re technically businesses, and if a business doesn’t comply, after a magistrate demands that they comply, what do you do? You shut down the business," she explained, while also noting the city’s desire not to harm visitors. The task force plans to hold meetings throughout the summer to finalize new guidelines and explore ways to enhance support for law enforcement and code officers responsible for monitoring rental compliance.

[link-whisper-related-posts]

Sources

  • Cape Coral Cracks Down on Illegal Vacation Rentals as City Weighs New Rules and Fee Hike, 96k-Rock.
  • Cape council member working to tackle vacation rentals not following the rules, Fox4Now.com.

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