Cape Council supports higher rental registration fees
One-time $35 fee for single-family annual rentals could become yearly; for short-term rentals it's $350 annually
The owners of annual rentals in Cape Coral may see their registration fee with the city go from a one-time $35 to an annual levy, while while those who rent their properties short-term may pay 10 times as much.
Cape Coral City Council supported leaving the $35 registration fee for annual rentals at the current rate but collecting it each year. Council also supported a $350 annual registration fee for short-term rentals at its Wednesday workshop.
Also supported were penalty fees for those who do not register at $500 for annual rentals and $1,000 for short-term rentals.
Consensus votes at Council workshops give staff direction but are not binding.
Councilmember Jennifer Nelson-Lastra, who put together a stakeholder’s group, said $350 was a little difficult for her to swallow, as the group’s recommendation was $100 per year. She said she would feel better if the number came down to around $250.
Council initially discussed having a tiered approach for registration fees – different fees for annual, seasonal and vacation rentals — but a majority said it would be too cumbersome to enforce.
“Our police department right now doesn’t track complaints based on rental and short-term rentals. If we can get some direction and try to track some of these bad players, we can get true cost of what enforcement is costing us,” Nelson-Lastra said. “We need to determine fines because we need to incentivize and make sure all rentals are registering.”
Council members all agreed the city needs to have a communication campaign before implementation, which they agreed would be Jan. 1.
Councilmember Bill Steinke, who sits on the Tourism Development Council, shed some light on the difference of a long-term rental, six months and a day, which determines whether sales tax is collected and whether the county’s “bed tax” is collected.
“It’s important for us as a city to know that these rentals are happening and whether they are six months or greater rentals,” he said, adding that “job one is to make sure those rental properties are registered. If not registered, you are fined.”
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