Kelowna gets exemption from short-term rental rules ahead of tourist season
The city’s vacancy rate has been higher than the province’s three per cent threshold the last two years
By Cheryl Chan
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More Kelowna homes will be available for Airbnb and other short-term rentals this summer after the Okanagan city was granted an exemption from B.C.’s short-term rental rules.
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Starting June 1, hosts in Kelowna can list properties for temporary accommodations even if the properties are not principal residences.
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The exemption is because Kelowna’s vacancy rate has been higher than three per cent for two consecutive years. Last year, the Kelowna census metropolitan region recorded a 6.4 per cent vacancy rate and a 3.8 per cent rate in 2024, according to the Canada Mortgage and Housing Corp.
Kelowna has worked to speed up approvals and deliver housing, said Mayor Tom Dyas, and its vacancy rate has risen.
“That leadership has allowed us to work collaboratively with the province on a solution that reflects our community’s needs,” he said in a statement on Friday.
“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.”
Municipal restrictions would still apply. The city said it plans to limit short-term rentals to buildings in tourism-zoned areas. Hosts will also need to apply for a local business licence.
B.C.’s Housing Ministry said Kelowna was the only municipality to seek an exemption, and it also requested an earlier implementation date to meet the demands of the busy tourist season.
The provincial government has adjusted the timeline for municipalities seeking to opt out of the regulations. Cities can submit their requests each year by Feb. 28; if approved, the exemption will take effect June 1 instead of the previous date of Nov. 1.
The change allows municipalities to accommodate tourism demands during the summer months, it said.
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Short-term rental restrictions were introduced in 2023 in more than 60 B.C. communities, creating concern in those with accommodation shortages during the summer season.
The province had said it does not plan to give Vancouver an exemption from the restrictions during the World Cup.
Last year, Metro Vancouver’s vacancy rate was 3.7 per cent, following a 1.6 per cent rate in 2024.
