Daily Regulatory Notes 08/18/2025
Cities address STRs. Virginia Beach, VA adopts rules; Cape Coral, FL discusses rules and fees; Forest Acres, SC proposes zoning overhaul.

Virginia Beach has adopted stricter enforcement tools for short-term rentals, with councilmembers voting to move ordinance violations from civil to criminal penalties.

The decision follows complaints that fines were ineffective against unlicensed operators and aligns STR violations with other zoning offenses. Additional updates include requiring STR signs to display the manager’s name, reducing parking requirements to one space for every two bedrooms, and broadening inspection authority to allow Class A, B, and C contractors.
Cape Coral officials are weighing new rules and fees for rental properties after a detailed review showed compliance costs far exceed the city’s current one-time $35 registration charge.

Councilmembers reviewed data showing $441 in annual costs per rental tied to administration, police readiness, and code enforcement, and with more than 6,500 registered units, violations related to short-term stays make up a notable share of cases. While some argued for a flat $100 annual fee, the council leaned toward a three-tier system modeled on Sanibel’s ordinance, with short-term rentals under three months carrying the highest proposed fee of $365. The council stopped short of a final vote but signaled that short-term rentals could soon face higher costs and stricter enforcement, with the matter set to return in two weeks.
Forest Acres is moving forward with its first major zoning overhaul in decades, and for the first time, short-term rentals are on the table.

The proposed Unified Development Ordinance would require STRs to register with the city and designate a local contact, giving officials a way to track and manage rentals that until now have operated without oversight. The same ordinance also tackles drive-thrus and overlay districts, but for housing, the big shift is the city’s recognition that short-term rentals need a framework. A first reading on the ordinance is expected in September.
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