Cape Coral city leaders recently floated the idea of charging rental property owners a $600 annual fee. Right now, rental owners only pay a one-time $35 registration fee. This change would be a big jump, especially for the roughly 10,000 property owners in the city who rent out homes. The city says this fee would help cover the cost of managing and tracking rental properties, especially short-term vacation rentals.
But not everyone agrees with the idea—many landlords and renters think it’s way too much, too fast.
Renters Could End Up Paying the Price
One of the biggest concerns people raised was how this would affect renters. If landlords suddenly have to pay $600 a year, there’s a good chance they’ll raise the rent to cover the cost. For tenants, this could mean paying around $50 more every month, depending on the size of the property.
That might not sound like a lot to some, but for working families or people on fixed incomes, that extra money could make a big difference. Some critics say the proposal ends up punishing renters more than the landlords and could make affordable housing even harder to find.
Airbnb and Vacation Rentals Are the Real Target
City officials are mostly aiming this fee at short-term vacation rentals, like those listed on Airbnb and similar platforms. These rentals have exploded in popularity and are often blamed for disrupting neighborhoods, increasing traffic, and driving up home prices.
People who run these types of rentals say they already pay a lot in fees and maintenance. They also argue that not all rental properties should be lumped together. Long-term rentals and vacation homes are very different, and a one-size-fits-all fee might not be fair.
City Wants to Use the Money for Tourist Projects
So, what would Cape Coral actually do with the money? According to officials, the plan was to take most of the money from the rental fees and put it into a special tourism fund. That fund would help pay for new city attractions like public swimming pools, indoor recreation centers, art spaces, and other things aimed at bringing more visitors to town.
Only a small portion—about 20%—would go toward enforcing rental rules and making sure owners follow city codes. The rest would be used to help make Cape Coral more appealing to tourists and boost the local economy.
Plan Put on Hold After Public Pushback
After hearing from residents, landlords, and real estate professionals, the city council decided to pause the plan. Many people felt like it was rushed and not well thought out. They were especially upset that it would hit long-term renters just as hard as short-term vacation property owners.
In response, the city created a Vacation Rental Advisory Group to take a closer look. This group includes people from different sides—homeowners, landlords, Realtors, city workers, and even regular residents. Their job is to come up with a better plan that makes more sense and works for everyone.
