Kelowna gets to ‘opt-out’ of restrictive provincial regulations on short-term rentals

The province is letting Kelowna opt-out of the restrictive regulations governing short-term rentals as the city’s rental vacancy rate is on the rise.

The provincial government was likely to give Kelowna looser short-term rental rules in November, but now those changes will go into effect on June 1, according to a press release from the Ministry of Housing issued today, April 17.

The short-term rental ban went into effect on May 1, 2024, with the goal of preventing people from taking housing off the market for long-term renters in cities that had low vacancy rates. Since then, Kelowna has increased its vacancy rate from 1.7 per cent to 6.2 per cent.

“Our short-term rental rules are focused on returning homes to the long-term market for people and giving communities with healthy rental markets the flexibility to provide additional tourist accommodation,” Housing Minister Christine Boyle said in the release.

The rules state that a city with a vacancy rate above 3 per cent is allowed to opt-out of the principal residence requirement for short-term rentals, meaning people can rent out investment properties as Airbnbs.

The City of Kelowna hinted that this change was imminent by creating new zoning bylaws to control where short-term rentals are located to protect long-term rental supply.

Kelowna was the only municipality to apply to opt-out of the short-term rental regulations and have the date moved up from November since the Memorial Cup, BC Summer Games and Touchdown Kelowna are coming to town.

“With a number of major events ahead this summer, Kelowna is ready to welcome visitors and support our local economy, while maintaining a balanced approach that respects our neighbourhoods and protects housing supply,” Kelowna’s mayor Tom Dyas said in the release.

The Kelowna Chamber of Commerce has been asking for this for months.

Kelowna-Mission MLA Gavin Dew had tried to push the date up through his own initiatives like a bill amending the Short-Term Accommodations Act, but that bill didn’t pass.

“The City of Kelowna deserves credit for its patience and professionalism: both in delivering on housing supply and in developing evidence-based short-term rental policies that reflect local needs,” Dew said in a press release.

“It is unfortunate that the provincial government took this long to acknowledge that a local solution was both available and appropriate.”