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Cape Coral, Florida

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Cape Coral

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Cape Coral, FL

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STR Regulations for Cape Coral, Florida

Comprehensive Guide to Short-Term Rentals in Cape Coral, FL

Overview: Are Short-Term Rentals Allowed in Cape Coral, FL?

Short-term rentals are allowed in Cape Coral, FL, but they are subject to specific regulations at the city, county, and state levels. The city requires registration of residential rental properties (including short-term rentals) through its Code Compliance Division, and operators must also comply with state licensing requirements and county tax obligations. While Florida state law prohibits local governments from completely banning short-term rentals or regulating the length of stays, Cape Coral has implemented registration requirements and compliance measures.

What do Airbnb hosts actually earn in Cape Coral?

Cape Coral hosts earn a median $31,809/year with $249 ADR and 60% occupancy.

Top performers pull in $49,667+ per year.

See the full Cape Coral market breakdown →

How to Start a Short-Term Rental Business in Cape Coral

Starting a short-term rental business in Cape Coral involves several key steps:

1. State-Level Requirements

  • Register with Florida Department of Revenue: Obtain a sales tax certificate for collecting state sales tax on lodging accommodations
  • Obtain DBPR License: Secure vacation rental licensing through the Florida Department of Business and Professional Regulation (unless you're running a hosted rental where you remain on-site)
  • Understand Tax Obligations: Register for and collect applicable lodging taxes from guests

2. City-Level Requirements

  • Complete Cape Coral Rental Property Registration: Register your property with the city's Code Compliance Division
  • Pay Registration Fee: Submit the one-time $35 registration fee
  • Maintain Compliance: Adhere to city ordinances and respond to code compliance issues

3. County-Level Requirements

  • Register for Lee County Tourist Development Tax: Collect and remit tourist development taxes on stays of less than 184 nights
  • File Monthly Returns: Submit tax returns to Lee County Tax Collector

Required Documents, Permits, Licenses, and Guidelines

City of Cape Coral Requirements

  • Rental Property Registration Application: Required for all residential structures with four units or fewer that are leased or rented
  • One-time Registration Fee: $35
  • Contact for Registration: Carol Rall, Customer Service Supervisor - crall@capecoral.gov, (239) 574-0624

State of Florida Requirements

  • Sales Tax Certificate: From Florida Department of Revenue for collecting state sales tax
  • DBPR Vacation Rental License: From Florida Department of Business and Professional Regulation (not required for hosted rentals)
  • Local Business Tax Receipt: May be required by local authorities

Lee County Requirements

  • Tourist Development Tax Registration: Register with Lee County Tax Collector
  • Monthly Tax Returns: File and remit tourist development taxes collected from guests

Exempt Properties

The following properties are exempt from Cape Coral rental property registration:

  • Rental properties owned by federal, state, or local housing programs
  • HUD-owned properties
  • Hotels and motels
  • Community residential facilities licensed and inspected by the state of Florida that do not include owner-occupied units

Specific Regulations for Short-Term Rentals

City-Level Regulations (Cape Coral)

  • Registration Requirement: All residential structures with four units or fewer that are leased or rented must be registered
  • Registration Fee: One-time fee of $35
  • Enforcement: Failure to register results in code enforcement procedures and violations of city ordinance
  • Property Maintenance: Must adhere to Rental Property Maintenance Guidelines
  • Zoning Compliance: Properties must comply with zoning requirements for rental use

County-Level Regulations (Lee County)

  • Tourist Development Tax: Required on stays of less than 184 nights
  • Tax Collection: Operators must collect this tax from guests
  • Filing Requirements: Monthly returns must be filed with the Lee County Tax Collector

State-Level Regulations (Florida)

  • Sales Tax: State sales tax applies to all transient rental accommodations (rentals of six months or less)
  • Local Option Taxes: Additional discretionary sales surtax may apply in certain counties
  • Marketplace Collection: STR marketplaces like Airbnb and Vrbo are required to collect and remit state-administered lodging taxes
  • Licensing: DBPR regulates vacation rentals (excluding hosted rentals where owner remains on-site)
  • Local Authority Limits: State law prevents local governments from banning STRs entirely or regulating stay length, but allows regulations for controlling negative effects

Minimum Stay Requirements

Based on community discussions, there appear to be enforcement discussions around minimum stay requirements, though specific current minimum stay rules should be verified directly with city authorities as these requirements can change.

Contact Information for Local Authorities

Cape Coral Code Compliance Division

  • Primary Contact: Carol Rall, Customer Service Supervisor
  • Email: crall@capecoral.gov
  • Phone: (239) 574-0624
  • Website: www.capecoral.gov/department/community_development/code_compliance_division/rental_property_registration.php

Florida Department of Business and Professional Regulation (DBPR)

  • Website: www.myfloridalicense.com/DBPR/hotels-restaurants/licensing/licensing-guides/
  • Emergency Information: www.myfloridalicense.com/emergency

Lee County Tax Collector

  • Tourist Development Tax Information: www.leeclerk.org/departments/inspector-general/tourist-development-tax

Florida Department of Revenue

  • Sales Tax Information: floridarevenue.com/taxes/taxesfees/Pages/sales_tax.aspx
  • Transient Rental Brochure: floridarevenue.com/Forms_library/current/brochure/gt800034.pdf

Source Pages and Additional Resources

  • Cape Coral Rental Property Registration: www.capecoral.gov/department/community_development/code_compliance_division/rental_property_registration.php
  • Cape Coral City Codes and Ordinances: www.municode.com/library/fl/cape_coral/codes/code_of_ordinances
  • Florida State Statutes: www.leg.state.fl.us/Statutes/
  • DBPR Vacation Rental Licensing: www.myfloridalicense.com/DBPR/hotels-restaurants/licensing/licensing-guides/
  • Lee County Tourist Development Tax: www.leeclerk.org/departments/inspector-general/tourist-development-tax
  • Florida Sales Tax Information: floridarevenue.com/taxes/taxesfees/Pages/sales_tax.aspx
  • Avalara Florida STR Guide: www.avalara.com/mylodgetax/en/resources/vacation-rental-tax-guides/florida.html

Important Compliance Notes

  1. Dual Registration: Properties must register with both the city and state authorities
  2. Tax Collection Responsibility: Operators are responsible for collecting and remitting applicable taxes, even if using marketplace platforms
  3. Enforcement Actions: Cape Coral has demonstrated active enforcement, with reported fines exceeding $30,000 for violations
  4. Regular Updates: Regulations can change frequently; operators should regularly check for updates from all relevant authorities
  5. Professional Advice: Consider consulting with legal and tax professionals familiar with Florida STR regulations

This guide provides a comprehensive overview based on available information, but operators should verify current requirements with official sources as regulations may change.

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Cape Coral

Market Saturation Score

036912
Mild Saturation
4/ 12
months with declining YoY revenue
2–4 declining months: early saturation pressure - watch for trend persistence.
View Full Cape Coral Market Analysis →

Photos of Cape Coral

Overview of Cape Coral

Cape Coral, Florida, is a vibrant city located in Lee County. As of the latest census data, it boasts a population of approximately 200,000 residents. The city is situated about 13 miles southwest of Fort Myers, the nearest major city. This proximity allows residents and visitors to easily access the amenities and attractions of a larger urban area while enjoying the more relaxed pace of Cape Coral.

Cape Coral is known for its extensive canal system, which includes over 400 miles of canals, earning it the nickname "Waterfront Wonderland." This vast network of canals makes it a prime location for boating, fishing, and other recreational water activities. One of the city’s key landmarks is the Cape Coral Yacht Club Cape Coral Yacht Club, which offers a public beach, fishing pier, and community pool.

Another major attraction is the Sun Splash Family Waterpark Sun Splash Family Waterpark, the largest waterpark in Southwest Florida, providing a variety of waterslides and pools for all ages. For nature enthusiasts, the Four Mile Cove Ecological Preserve Four Mile Cove Ecological Preserve offers walking trails, kayaking opportunities, and wildlife observation.

Cape Coral’s strategic location, robust infrastructure, and abundance of recreational and natural attractions make it an appealing destination for short-term rentals. Visitors can enjoy a wide array of activities ranging from water sports to nature exploration, ensuring a memorable stay in this picturesque Floridian city.

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