CAPE CHARLES, Va. — The Town of Cape Charles is working to resolve a payment calculation issue tied to its recently implemented short-term rental (STR) management software, Rentalscape, according to an administrative update released this week.
Town officials said the problem resulted in some STR payment amounts being calculated incorrectly within the system. The software vendor has since addressed the underlying issue, and the calculation error now appears to be corrected. However, municipal staff are continuing to work through the administrative aftermath, including processing adjustments and reconciling affected accounts.
The review comes at a time when the Town is already engaged in an intensive compliance and reporting cycle tied to its expanding STR oversight framework.
Staff are currently conducting detailed reviews of STR applications, a process officials described as time-consuming due to several overlapping financial and regulatory requirements. Those include mandated 2025 true-up reconciliations, audits of prior-year Transient Occupancy Tax (TOT) payments, and additional financial reconciliation to ensure that service fees and projected 2026 revenues align with actual bank deposits.
The reconciliation work is part of the Town’s broader effort to ensure accuracy in STR revenue tracking as short-term rentals continue to play a significant role in Cape Charles’ tourism economy and municipal revenue structure.
Town officials emphasized that resolving discrepancies and ensuring compliance remains a top priority as the system matures.
“We respectfully ask STR applicants for their continued patience as we navigate the early challenges of implementing this new system,” the Town said in its statement. “We sincerely appreciate your understanding and cooperation as we work to ensure accuracy and compliance.”
No timeline was provided for when all reconciliations and application reviews will be completed, though staff indicated the work is ongoing.
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