Cape Coral introduces new fees for rental properties

CAPE CORAL, Fla. —

Cape Coral has introduced new annual fees for rental property owners, affecting both short-term and long-term rentals and sparking concerns among investors.

Earlier this year, the Cape Coral City Council considered a $600 annual fee for rental property owners, but after much backlash, the fee was reduced.

In 2026, all long-term rentals, defined as leases of six months or more, will have to pay a $35 annual fee, while short-term rentals, leased for less than six months, will be charged an annual fee of $350.

Erica Eister of Eister and Company Realtors expressed her concerns about these new fees.

"It just doesn't make a lot of sense. And it does not motivate investors to continue to buy property in that area if they're just going to keep getting, you know, nickel and dimed on fees," she said.

Eister also noted the challenges for out-of-state property owners.

"You've got a lot of owners who are out of state. So now they're going to have to also go and hire property managers that they normally maybe weren't utilizing to save money. And now they're going to have to have all of those additional expenses in order just to rent out their property peacefully," she said.

The city stated that the notices sent to property owners were meant to inform, not alarm.

"Our focus is on making sure rental property owners understand the requirements and have a clear path to compliance," the city said.

The renewal deadline for property owners is the anniversary of the property's original registration date, and a $50 late fee will apply if not renewed within 30 days of this date.

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