With the new year comes new regulations for rental properties in Cape Coral.
Effective Jan. 1, residential rental property registration is required on an annual basis, and owners must now renew the registration for each registered property every year.
The renewal date for each property — there are currently 10,290 registered — depends on when the rental was last registered; it is not the first of the year, the city’s website states.
The fee for long-term residential rentals — those rented for more than six months — is $35 per year per property.
The annual fee for sort-term rentals — those rented for periods shorter than six months — is $350 per year.
As per the ordinance approved by Cape Coral City Council, all residential units in the city must be registered with the city with fines beginning at $1,000 for a first offense, $2,000 for a second and increasing penalties for repeat non-compliance.
There also is a $50 fine if a registration is not renewed within 30 days of its “anniversary” registration date.
More information on the city ordinance, related resolution and a city fact sheet may be found at capecoral.gov.
The market
According to an Oct. 21 report from Construction Coverage, Cape Coral holds the No. 3 spot for new home construction among mid-size metros.
The market for single-family rentals, meanwhile, has slowed in Cape Coral but properties are renting, industry officials say.
Bruno Franco with RE/MAX said as of Wednesday before the holidays there were 637 single-family homes available for rent in the Cape, 137 duplexes, 29 quadplexes, 16 townhouses,152 low-rise rentals and 14 midrise units.
“It’s not that it’s not moving. Everything rents. Properties are sitting in the market way longer than we are used to. Overall, properties are sitting in the market 45 to 60 days if they are not priced right,” he said.
Properties among those Franco provided were on the market from anywhere from 14 days to 97 days, with rental rates ranging from $1,500 to $2,500 per month.
“I approach the market a little bit different. I don’t want my properties to sit. If my owner sits on the market for 30 to 45 days, any profit they are going to lose. My strategy with my owners — I know the market is not that great. We don’t want to sit too long. We have to market accordingly. I strategize to go in a little bit lower, so I can basically look good in that region I am trying to rent,” he said. “There is no point in renting at max market. It is just going to sit there.”
If the rate is too high, renters won’t come, Franco said adding that some of his tenants are leaving not only the area, but the state, and even the country.
“A lot of people are leaving town. This past month I had four tenants leaving the state. They can’t afford to live here anymore. I had a few tenants that went back to their home country because of their immigration status. They can’t renew their license and insurance. I am seeing a lot of that. A lot of immigrants are leaving the area because they are scared,” he said. “Affordability, right now, is not there. A lot of people can’t afford to stay here.”
Some of those leaving Cape Coral are heading over the river into Fort Myers and around Lehigh. Franco said they are seeking housing closer to work, so they do not have to pay the bridge toll and sit in the morning traffic.
“The owners are feeling it. We have to stay smart. Owners can’t sell because they will lose money if they sell,” Franco said.
The market increased during and after the pandemic, he said, saying the market went crazy.
“It’s not that the rentals were high, it was the demand,” he said. “We are adjusting where it needs to be — a realistic price. The owners purchased the property at a high dollar amount.”
With so many apartments being built in Cape Coral and offering incentives, Franco said it will take a little time for the rentals to go back to normal, but the market will adjust.
Vacation rentals
The market for vacation rentals has not been affected too much, according to, according to Koeh Roleens, of Roleens Vacation.
He said the influx begins on Dec. 20 when Cape Coral residents begin to feel the busyness in the bars, restaurants and traffic.
With freezing weather happening in the northern states, there will be a good volume of bookings coming in at last minute, he said.
The vacation rentals are filling up at most professionally managed properties.
“The properties that are most professionally managed will see the biggest influx and the highest rates because people want excellent service. It’s actually more important than rates. Service is very important. People that have their operations 100% in order, they will benefit from that,” Roleens said.
People are seeking the personalized services -small amenities such as shampoo, condition, pots and laundry for their vacation rentals. Pools and docks are an added bonus.
The creativity of the property, as well as location, Roleens said will book.
“Is your property maintained, cleaned, in a good location? Does it have unique amenities? Those get booked for more money and way quicker,” he said.
To reach MEGHAN BRADBURY, please email news@breezenewspapers.com