How Short-Term Rental Laws Are Changing in Southwest Florida

Southwest Florida’s vacation rental market is evolving rapidly. Homeowners and investors—particularly in hotspots like Naples, Fort Myers, Cape Coral, and Bonita Springs—are navigating a complex regulatory landscape as municipalities respond to neighbor concerns, tax enforcement needs, and the growth of platforms like Airbnb and VRBO.

State Regulations: Unified Framework with Local Flexibility

Florida does not impose a statewide ban on vacation rentals or limit their duration. The state instead allows local jurisdictions to adopt and enforce their own rules, provided they predate the 2011 state policy. This flexibility has created diverse local approaches. For instance, all short-term rentals must hold a license from the Florida Department of Business and Professional Regulation, and hosts must collect and remit a 6% state sales tax on rentals under six months—while local tourist taxes may also apply.

A recent legislative attempt to centralize control—Senate Bill 280—aimed to standardize licensing, inspections, occupancy limits, and tax collection across the state. However, it was vetoed, preserving local authority and ensuring community-specific regulations remain intact.

Local Rules: Registration, Fees, and Community Pushback

Collier County (Naples, Marco Island)
Rentals in unincorporated Collier County must register, obtain a state license, and display their registration number in all advertising. However, properties located within Naples and Marco Island are exempt from this county-level requirement, leaving regulation to those cities instead.

Lee County (Fort Myers Beach & Fort Myers area)
The Town of Fort Myers Beach enforces a detailed registration process including a $300 annual fee, insurance proof, occupancy limits, and local contact requirements. Hosts must collect a combined 11% tax (state and county) and renew compliance annually. A 24-hour hotline allows neighbors to report violations, and code enforcement actions can include fines and license revocations.

Cape Coral
All residential short-term rentals with four or fewer units must register with Cape Coral’s city government, pay a $35 fee, designate a 24/7 local contact, and adhere to a minimum rental timeframe of seven days. While enforcement has been inconsistent, backlash from neighbors—who complain about disruptive behavior—has pushed policymakers to revisit stricter enforcement and community protections.

Across these jurisdictions, growing homeowner frustration with unruly guests and unchecked turnover highlights the rising tension between local quality-of-life and rental income.

Summary Table: Current Regulation Snapshot
LocationKey Regulation FeaturesStatewide FloridaDBPR licensing, 6% state sales tax on short-term stays, preemption allows local rulesCollier CountyShort-term rental registration required outside Naples & Marco IslandLee County$300/year registration, local contact, tax collection, code enforcementCape Coral$35 registration, 7-day minimum stay, local contact mandatory, rising enforcement
Final Thoughts

The short-term rental landscape in Southwest Florida remains fluid and locally tailored. Owners must stay informed—regardless of their city or county—to remain compliant and avoid penalties. With ongoing pushback from residents and active policymaking, full-time oversight and engagement with local rental regulations are more critical than ever.

Let me know if you'd like a follow-up comparing these regulations town by town, or something focusing on the implications for investors and homeowners.

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