Short-term rentals in Cape Coral, explained properly.

The city's FAQ says owners who rent out only a room must still register. City Code § 12-129 defines residential rental property as a dwelling unit or any habitable space in a residential or mixed-use structure that is leased or rented to another person or entity; hotels, motels, licensed community residential facilities and government-owned housing are excluded. (Renting only rooms does not need a state DBPR vacation rental license.)

If a rented property claims a homestead exemption, the city tells owners to contact the Lee County Property Appraiser to confirm whether the exemption still applies. Under § 12-129(d)(4), the City Clerk notifies the Property Appraiser in writing of any property found in violation of the registration rules that claims a homestead exemption.

The registration must give the owner's legal name and the name, mailing address, email (if any) and phone number of a person or company responsible for responding to nuisances, code violations and emergencies at the property. Owners must keep this current and notify the City Clerk's Department within 30 days of any change.

When ownership of a rental property changes, the new owner must register it with the City Clerk's Department within 30 days of the transfer.

The registration fee is due when the property is first registered and again on each anniversary of that date (not January 1). Renewing more than 30 days after the anniversary triggers a late fee, set at $50 by the city, and referral to Code Compliance.

Under § 12-129(d)(3), an owner of a short-term rental found in violation of the registration section faces a $1,000 civil penalty, and $2,000 for a second or later violation within 36 months (long-term rentals: $500 and $1,000). Each day a violation continues is a separate offense, and the Special Magistrate cannot change these penalties. The city's FAQ separately describes a $50 fine and referral to Code Compliance for failing to register.

An owner who registers a property as a long-term rental and is later found renting it as a short-term rental violates § 12-129(c)(1) and faces a $1,000 civil penalty for a first offense and $2,000 for a second or later violation within the preceding 36 months.

An owner who fails to renew within 30 days of the anniversary date and is found in violation owes the late fee plus a civil penalty of $500 for a short-term rental ($1,000 for a second or later violation within 36 months); long-term rentals face $250 and $500.

Lee County levies a 5% local option transient rental (tourist development) tax on stays of six months or less. The Department of Revenue's rate table lists it as collected by the county, so it is reported and paid to Lee County rather than to the state.

Lee County's 0.5% discretionary sales surtax applies on top of the 6% state sales tax. The Department of Revenue lists it as effective January 1, 2019 and expiring December 31, 2028.

Florida Statutes § 509.032(7)(b) says a local law, ordinance or regulation may not prohibit vacation rentals or regulate how long or how often they are rented. Local rules adopted on or before June 1, 2011 are exempt from this limit, so some older local rules on rental length can still apply. Section 509.032(7)(a) also reserves the regulation of public lodging establishments (sanitation, inspections and similar matters) to the state, while local governments keep building-code and fire-code inspections. Local governments can still require registration and set other rules that do not ban rentals or limit their length or frequency.

The Florida Department of Business and Professional Regulation (DBPR), Division of Hotels and Restaurants, licenses vacation rentals. A license is needed when an entire unit is rented more than three times in a calendar year for periods of less than 30 days or one calendar month, whichever is less, or when the unit is advertised or held out to the public as a place regularly rented to guests. Houses, townhouses and buildings of up to four units take a Vacation Rental – Dwelling license; condominium and cooperative units take a Vacation Rental – Condominium license. Renting single rooms rather than the whole unit does not need a DBPR license, though local rules may still apply. Current licenses must be displayed in a conspicuous place on the premises.

New DBPR vacation rental applications pay a $50 application fee, a $10 Hospitality Education Program fee and a license fee. For a single rental unit the full-year license fee is $170 (half-year $90); group licenses for 2 to 25 units are $180 (half-year $95), with higher tiers for more units. Renewals pay the $10 education fee plus the full-year license fee. Renewal and half-year dates depend on the county's DBPR district.

Anyone who rents, leases, lets or grants a license to use transient accommodations must register with the Florida Department of Revenue to collect, report and remit sales tax.

Florida's 6% state sales tax, plus any applicable county discretionary sales surtax, applies to rent paid for living, sleeping or housekeeping accommodations rented for six months or less.

Counties (and certain cities) may add a local option transient rental tax, such as a tourist development tax, on rentals of six months or less, on top of the 6% state sales tax and any surtax. The Department of Revenue's rate table lists each county's rate and who collects it. Most counties administer the tax themselves, and in those counties it is reported and paid directly to the county rather than to the state.