Cape Coral Cracks Down on Illegal Vacation Rentals as City Weighs New Rules and Fee Hike

City inspectors found hundreds of short-term rentals breaking Cape Coral's week-long stay rules on popular booking sites. The findings surface amid mounting tension over rental oversight in this coastal Florida town.

Council member Jennifer Nelson-Lastra leads a task force to fix rental rules. "We do not have a lot of hotels, so we really rely on the vacation rental owners and those properties to be able to house all of our tourists every year," said Nelson-Lastra to Fox 4 News.

Plans to raise rental fees from $35 to $600 sparked strong reactions from locals. "How are you trying to run people out when our economy needs to grow?" said Mike, a Cape Coral resident.

Aiden, who lives nearby, blasted the steep price increase. "I wouldn't blame them if they wanted to raise it up to 100 or something a little more reasonable, but 600 is a little bit outrageous."

The task force is considering Sanibel's method as a possible fix. Their system sets fees based on rental type, with a $300 maximum.

Nelson-Lastra wants strict action against rule-breakers. "If you look at these properties, they're technically businesses, and if a business doesn't comply, after a magistrate demands that they comply, what do you do? You shut down the business."

Summer meetings will shape new guidelines. The group also aims to boost support for law enforcement and code officers who check rental sites.