Cape’s proposed rental registration fee hike to come back to Council Wednesday
City proposes to increase one-time $35 levy to $600 per year
As promised in the wake of industry outcry, a proposed increase in the city’s rental registration fee – from a one-time $35 levy to $600 per year, per unit — will come back to Cape Coral City Council at its workshop Wednesday.
The hike was first introduced last week, generating pushback from those who said it would hurt landlords and renters alike: The city’s vacancy rate stands at about 30% while affordable housing is lacking.
Agenda documents touch upon data that was presented in February, including 2024 AIR DNA data, occupancy rate sensitivity analysis and average daily revenue sensitivity analysis.
As proposed and based on an estimated 10,000 units citywide, the fee would generate $6 million per year, which the city says it would use for a new tourism-driven efforts and infrastructure, less the cost of enforcement, which the city estimates at about 20% of the fee, or about $120 per unit.
According to the Tourist Development Fund financial cycle, an owner would collect more room night fees, as the city would use the fee money to construct tourist-related amenities.
Residents also would see a benefit, proponents maintain.
“It is the city’s further intent to specifically establish a residential rental property registration as a mechanism to protect neighborhoods from becoming blighted through the lack of maintenance of residential rental properties,” according to the ordinance as proposed.
The definition of residential rental property “shall mean a dwelling unit located in a residential structure containing four individual dwelling units or fewer that is leased or rented to another person or entity.”
Registration with the City Clerk’s Department would be required along with the proposed $600 annual registration fee.
In regard to the enforcement, the companion ordinance states that “in addition to the applicable code enforcement provisions and procedures, upon a finding of violation of this section, the city, through the police department and code compliance division, is authorized to remove all occupants from the residential rental property until such time that the residential rental property is registered with the city.”
If there is substantial change to the ordinance, or ordinances, made at the workshop, the proposal intended to fund tourism-related initiatives will go back to a first reading, and not a final public hearing on June 4.
The meeting will be held at 9 a.m. Wednesday, May 28, in City Council chambers, 1015 Cultural Park Blvd. The meeting is open to the public.