New registration requirements, annual fees and stricter enforcement for residential rental properties in Cape Coral took effect Jan. 1 aimed at increasing accountability and funding code enforcement.

The changes, adopted under Ordinance 53-25 and Resolution 279-25 and approved by a City Council vote last year, require all residential rental properties — both long-term and short-term — to register annually with the city. Officials say the updated program allows Cape Coral to better track rental properties, respond to complaints and recover enforcement-related costs.

As of last week, the city had 10,290 registered rental properties, a city official said .

Fees and registration requirements

Under the updated Residential Rental Registration Program, property owners must now register and renew annually, regardless of how long a property is rented.

The city defines long-term rentals as properties leased for more than six months and short-term rentals as properties leased for six months or less.

Annual fees are set at $35 for long-term rentals and $350 for short-term rentals.

The requirements apply to all residential rental properties within city limits, including single-family homes, duplexes, multifamily dwellings and condominiums rented to another person or entity.

Registrations and renewals are handled online through the city’s rental registration portal.

Renewal deadlines are tied to the anniversary date of a property’s registration rather than the

calendar year, and notices are sent to the billing contact on file.

Enforcement and penalties

Along with the new fees, the city implemented expanded enforcement provisions aimed at addressing repeat violations.

Property owners who fail to register or renew within 30 days of their anniversary date face a $50 fine and referral to Code Compliance. Additional penalties escalate depending on the type of rental and whether violations are repeated.

For long-term rentals, fines range from $250 for a first violation to $500 for repeat offenses. Short-term rental owners face higher penalties, starting at $500 for a first violation and increasing to $1,000 for repeat offenses.

Each day a violation continues may be treated as a separate offense, and owners who misrepresent their rental type or operate without registration may face additional penalties under broader code enforcement provisions.

City officials say revenue generated through registration fees and fines supports code enforcement, police services and rental registration software.

City Council approved the ordinance in September on a 5-3 vote, following months of discussion and a public hearing.

During debate, council members cited data indicating that about 12% of registered rental properties had generated code violations, with concerns largely focused on repeat issues tied to short-term rentals.

Supporters of the measure argued that rental properties operate as businesses and should help cover enforcement and administrative costs. Opponents questioned whether police and code enforcement costs should be recovered through user fees rather than general city funding.

Market reaction

The Royal Palm Coast Realtor Association opposed the ordinance during the public hearing, warning that increased fees could affect renters and investors.

Kevin Besserer, the association’s director of public policy, said while realtors supported a

registration program, they favored lower fees and greater stakeholder involvement.

Rafael Varela, a Cape Coral realtor familiar with the local market, said the changes could influence investor behavior.

“Any time a city adjusts rental fees and terms, it changes the math for investors, and that inevitably influences buying decisions in the market,” he said.

Varela added that higher short-term rental fees could shift some properties toward long-term use, potentially increasing rental supply.

Property managers say they are already adjusting to the new requirements.

Leslie Blaisdell, a leasing specialist with Miloff Aubuchon Realty Group, which manages long-and short-term rentals in Cape Coral, said the registration process was previously simpler.

“When we started registering properties a couple of years ago, it was basically one-and-done,”

she said. “It was $35 for all rental properties, and vacation rentals weren’t treated any differently.”

Blaisdell said the move to annual registration and higher short-term rental fees surprised many owners but has not generated significant pushback.

“We’re informing owners, and they’re moving forward and registering their properties,” she said.

Residents welcome oversight

Some residents living near short-term rentals said the changes are overdue.

Ruddy Guerrero, a Cape Coral resident living near several vacation rentals, said stronger enforcement could help address ongoing issues.

“We deal with loud music late at night, cars blocking driveways and party houses that keep coming back,” he said. “If owners are registered and the city has the resources to enforce the rules, maybe those problems won’t keep repeating.”

City officials say the goal of the updated program is to improve oversight and ensure the city has accurate owner information, not to eliminate rental properties.

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