Kelowna gets early approval to adjust short-term rental rules

Kelowna is getting an early green light to adjust its short-term rental rules ahead of the summer’s busy tourism season. The city will receive special exemption status a year ahead of others.

The province is speeding up timelines that allow eligible communities with strong rental vacancy rates to opt out of its principal residence requirement for short-term rentals. Starting in 2027, qualifying municipalities will be able to submit opt-out requests by Feb. 28, with changes taking effect June 1 instead of Nov. 1.

The province says the shift is meant to better align housing rules with peak summer tourism demand in communities where rental supply has improved.

However, Kelowna will see the change a year early under a one-time exemption, allowing it to opt out effective June 1, 2026.

The city is the only municipality this year to request both the opt-out and the accelerated timeline.

Housing Minister Christine Boyle says the update is intended to balance housing supply with local flexibility.

“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,” Boyle said.

Tourism Minister Anne Kang says short-term rentals continue to play an important role in B.C.s visitor economy and help support local businesses.

Under the new rules, Kelowna plans to limit short-term rentals to tourism-zoned buildings. Hosts will still be required to provide a local business licence when applying for provincial registration.