A controversial proposal to impose a new annual $600 fee on residential rental properties in Cape Coral has been shelved following intense public outcry.
The proposed fee, meant to replace the current one-time $35 charge, was introduced as a way to generate funding for future city facilities. But many residents, Realtors and even City Council members opposed the plan, citing affordability and transparency concerns.
The idea, introduced by Councilman Keith Long, was positioned as a middle-ground estimate based on available data. Long defended the figure as a “starting point for negotiation,” but acknowledged it lacked full council support.
“I bring forward an idea. The idea doesn’t stick. We move on. At least I wish we would move on,” Long said during the meeting.
Real estate professionals said the proposed fee, representing a nearly 1,700% increase, would have blindsided property owners and renters alike.
“This is a huge attack on affordable housing,” said Kevin Besserer, director of public policy at the Royal Palm Coast Realty Association. “That’s $100 a month added to rent — landlords would be forced to pay that upfront.”
JJ Jones and Barbara Klare of Jones Realty echoed concerns about double taxation.
Despite the backlash, there was some recognition of the city’s attempt to address broader issues in the rental market.
“I think Councilman Long was trying his best to deal with enforcement and make sure the city had enough money to prosper,” Besserer said.
The council ultimately voted not to move forward with the ordinance. Several members said the plan was too rushed and needed more collaboration with stakeholders.
“No one disagrees that this needed to be revisited,” one council member said. “But we’re probably going to have our first real fight. I’m going to recommend that we kill this.”
Though the proposal is off the table for now, city staff indicated they are open to future efforts to regulate short-term and long-term rentals in a more balanced way, even adding stakeholder groups, including Realtors, for next time.
“If this gets brought to the table again,” Besserer added, “they also need to make sure hotels pay their fair share.”