Short-term rentals

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January 2024, Council approved the removal of secondary use short-term rental accommodation as a permitted use from all zones in the City's Zoning Bylaw.

City bylaws have been updated to support new local and provincial short-term rental regulations 

The Provincial government has introduced legislation to help municipalities further regulate short-term rentals to improve housing supply and affordability across B.C.  After receiving information about upcoming changes to the provincial government’s short-term rental regulations on January 15,  Council supported staff-recommended amendments to Kelowna’s Zoning Bylaw to address enforcement challenges and protect our community’s long-term rental supply. Council approved the Bylaw amendments on January 22, 2024. New provincial rules coming into affect on May 1 will affect short-term rental accommodation within the City of Kelowna, with the most significant changes to current principal use and non-conforming properties.

Overview of changes

Effective January 22, 2024

Secondary use

  • Secondary use short-term rental accommodation was removed as a permitted use from all zones. However, under the City’s discretion, 498 licenced secondary use short-term rentals were granted 'legal non-conforming status' and are permitted to continue operating in Kelowna, if they meet provincial principal residence requirements.
Effective May 1, 2024

Principal residence

  • Short-term rentals will only be allowed within principal residences in most parts of the province.
  • The province has defined principal residence to mean “the residence in which an individual resides for a longer period of time in a calendar year than any other place” and has limited short-term rentals to only being permitted within the host’s principal residence. This new requirement will apply to all properties, including those with currently permitted principal use, legally non-conforming, and secondary use short-term rentals.

Principal use

  • Principal use short-term rentals (where short-term rentals are the main use for a property) will no longer be permitted on any properties. This is because short-term rentals are limited under provincial legislation to only being permitted within the host’s primary residence.

Legally non-conforming

  • For current legally non-conforming properties, principal use short-term rentals will no longer be permitted, as principal use short-term rental accommodation is not a permitted use in the Zoning Bylaw for the zones of those properties.
Exemptions

The provincial legislation does not apply to hotels, motels, vehicles (such as RV’s) and tents or other temporary shelters. There are also limited exemptions to the principal residence requirement which includes strata titled hotels and to properties that include farm land (Class 9).

Local governments cannot request exemptions on a site-by-site basis. This leaves building owners/operators the option to pursue exemptions with the provincial government.

Frequently asked questions
How will these changes help the housing crisis in Kelowna?

The City currently has an estimated 1,200 unlicenced short-term rentals, the majority of which are on properties where short-term rentals were a permitted secondary use. The amendment to remove short-term rentals as a secondary use will help ensure these homes are used for residents, contributing to targets within the Housing Needs Assessment. 

How will the new municipal and provincial regulations affect my ability to operate a short-term rental on my property?

The new principal residence requirements and changes to legal non-conforming protections established in the Short-Term Rentals Accommodations Act came into effect on May 1, 2024.  As such principal use short-term rentals are no longer permitted. This is because short-term rentals are limited under provincial legislation to only being permitted within the host’s primary residence.

Unless you had a valid business licence prior to January 2024, operating a short-term rental as a secondary use on your property (i.e. the property is your principal residence) is not permitted. No new licence applications are being accepted.

Principal Residency & Long-Term Rentals
How will the new Provincial principal residency requirements apply to my short-term rental?

The provincial Short-Term Rentals Accommodation Act requires short-term rentals to be provided in the principal residence of a host only. This new principal residence requirements will come into effect on May 1, 2024. If you do not already have a secondary use short-term rental licence (i.e. for your primary residence), you will not be eligible to obtain one.

What is the minimum length of stay for a tenant (short-term or long-term)?

The City’s Zoning Bylaw defines short-term rental accommodation as a period of 89 days or less. The City amended the period of time definition in the Zoning Bylaw to be consistent with provincial legislation. 

Business Licensing & Compliance
How do these changes affect me if I currently have a valid business licence for a secondary use short-term rental?

Properties that currently have valid secondary use short-term rental accommodation business licences can continue to operate, even after May 1, 2024, provided they meet provincial principal residence requirements and the conditions of their municipal business licence. Details about the new provincial registry and the mandatory registration process are anticipated in 2025.

Can I convert my principal use short-term rental licence to a secondary use short-term rental licence?

Principal use licences cannot be converted to secondary use licences, as secondary use short-term rentals are no longer permitted in the City of Kelowna.

Grandfathering / Non-Conforming Uses
I purchased a unit in a project that’s under construction and was expecting to be able to operate a short-term rental. What rules will apply?

The provincial Short-Term Rentals Accommodation Act introduces new principal residence requirements and changes to legal non-conforming protections. The principal residence requirements and changes to legal non-conforming protections came into effect on May 1, 2024.

 


 Note :  Staff will update content on this page to reflect changes to local bylaws and new legislation coming into effect. Some information in the Operator's Guidebook will change.

Operating a short-term rental

Anyone operating a short-term rental must have a valid business licence. The City is no longer accepting applications for short-term rental business licences as a secondary use. - however, if you have a legal non-conforming secondary use licence, you are permitted to operate provide you continue to meet the requirements of your existing licence and the principal residence requirement as outlined by the province. 

By licensing your short-term rental and following regulations, you're helping limit negative impacts to the long-term rental market, ensuring your accommodation is a good neighbour, and supporting equity among all short-term accommodation providers. 

The fee for short-term rentals with a valid business licence (for properties with legal non-conforming secondary use status) is $345.

These fees reflect the cost of implementation and compliance oversight activities. Short-term rental operators are required to renew their licence annually and ensure all documentation is accurate and up-to-date for the new year. Renewal notices will be mailed in early December, and licence fees are due by Jan. 15 each year regardless of booking start dates. 

How to apply for a short-term rental business licence 

There is a waiting period of 2-5 weeks to receive a final review of a short-term rental application after it is submitted online or in-person at City Hall. Please monitor the email you provided on your application for updates.

Eligibility
Eligibility overview
  • The short-term rental must be within your principal residence
  • Contact information for the designated person responsible for overseeing the unit must be provided upon application and posted within the accommodation.
  • Short-term rentals are not allowed in secondary suites or carriage houses
  • Obtain permission from your landlord, if applicable
  • Ensure your strata bylaws allow short-term rentals, if applicable
  • Parking must be available as per Section 8 of the Zoning Bylaw 
  • It is also recommended that you confirm your insurance policy allows for short-term rentals
Parking, bookings, bedrooms & other requirements

1Short term rentals should park within the designated principal parking for the dwelling unit. Short term rentals shall not park within the visitor parking.
 

Other requirements

  • List your business licence number in any listings advertising your rental. 
  • Renew your business licence annually
  • If you have a valid business licence for a short-term rental, you are required to comply with the conditions of your business licence.
Fire & safety requirements

Your short-term rental accommodation must have appropriate safety measures in place to protect guests in the event of an emergency. The following requirements must be met: 

  • Provide contact information for someone who is available to respond to incidents 24/7. 
  • Post a fire and safety evacuation plan in sleeping units and at exits. 
  • Install an accessible, working fire extinguisher on each floor. 
  • Test annually, and maintain in working order, all smoke alarms, fire extinguishers, and carbon monoxide detectors. 
  • Bedroom windows are to open without obstruction. For bedrooms without sprinkler systems, the window opening cannot be less than 0.35 m2 (3.8 sq ft) with no dimension less than 380 mm (15 inches). Where a window opens into a window well, a clearance of no less than 760 mm (18 inches) shall be provided in front of the window. There should be no security grilles that require keys, tools or special knowledge of the opening mechanism. Rooms found not to meet window requirements are not be used for sleeping accommodation.
Compliance

We actively work to ensure short-term rental operators comply with rules and regulations. Operators may face fines of up to $500 per day, per offence, and significantly higher amounts if compliance efforts require escalation.  After May 1, illegal operation may result in increased enforcement by both the municipality and the province. Fines may increase per new provincial legislation.

File a short-term reNTal complaint 

Licensing your short-term rental and following regulations helps us balance impacts to the housing market and to neighbourhoods. Protecting the long-term rental market, ensuring short-term rental accommodations are good neighbours, ensuring fairness among short-term rental providers, as well as cost recovery for compliance needs, are all considerations in the regulations and licensing process. 

Example offences
  • Operating without a valid business licence. 
  • Operating contrary to zoning restrictions. 
  • Listing or advertising a short-term rental without displaying a valid business licence. 
  • Listing or advertising a short-term rental exceeding approved bedroom count on business licence. 
  • Operating a short-term rental contrary to your business licence.
  • Operating in an unsafe or nuisance property. 
  • Refusing entry for inspection by a Licence Inspector or City representative. 

Operators exceeding licensing requirements or restrictions, and those with repeat offences, may be subject to escalated prosecution and higher fine amounts per offence per day. 

Inspection

The City actively inspects short-term rentals. Operators must provide access to their short-term rental accommodation for the City to inspect, upon request. 

Operators understand that City staff may: 

  • Audit short-term rental licences and all required documentation.
  • Request evidence that supports the information in a licence application
  • Request records of the short-term rental bookings and operation dates
  • Request records showing fire safety inspections and safety maintenance
Information for guests

City bylaws ensure our community is a safe and enjoyable place for residents and visitors. Please ensure your guests are aware of the following rules, as well as any other rules set by your strata, if applicable. 

Noise

Because many short-term rental properties are near other residential homes, please ensure your guests are considerate of the public and their neighbours at all times of day. View the Good Neighbour Bylaw to learn more. 

Parking

Ensure your guests know where they can and can’t park. Guests must have access to a designated parking space, as per Section 4 of the Traffic Bylaw. Inform guests of any on-street parking time limits or restrictions. 

Dogs

Guests must control their dogs at all times and keep on a leash when outside, unless within a designated off-leash dog park. Guests must also pick up after their dog. 

Garbage and recycling

Ensure guests have access to recycling and garbage bins. Learn more about garbage, recycling and yard waste options.

Issues or concerns

Direct any nuisance complaints to Bylaw Services at 250-469-8686. If you're aware of a short-term rental business operating without a licence, contact our Licensing Branch at businesslicences@kelowna.ca.

Background

We prepared these regulations based on Council-endorsed guiding principles, in consultation with the public and stakeholders and in alignment with provincial regulations. The regulations aim to balance the interest in having short-term rentals in our community with measures that protect long-term rentals and limit impacts on neighbouring properties and uses. 

Guiding principles
  • Ensure short-term rental accommodations do not impact the long-term rental housing supply in a negative way.
  • Ensure short-term rental accommodations are good neighbours.
  • Ensure equity among short-term accommodation providers.
Timeline
Public opinion surveyFall 2017
Council review of Guiding Principles & public survey results (July 16, 2018)Summer 2018
Draft regulations, stakeholder engagementSummer & Fall 2018
Staff policy recommendations (Dec. 3, 2018 & Feb. 25, 2019)Winter 2018/2019
Council bylaw consideration (March 12 & April 8, 2019), public hearing Winer-Spring 2019
Implementation & business licence intake April 23, 2019
Staff policy recommendations: Secondary suites and carriage housesMay 6, 2019
Report to Council - Staff recommend amendments to short-term rental accommodation October 23, 2023
Public HearingNovember 21, 2023
Report to Council - Provincial Regulatory ChangesJanuary 15, 2024
Bylaw Adoption - Adoption of short-term rental bylaw changesJanuary 22, 2024
Report to Council - Short-term Rental Property Exemptions February 5, 2024