Kelowna Short-Term Rental Special Update

Kelowna Granted Special STR Opt-Out Effective June 1

Major news for property owners and the local tourism industry: Kelowna has been granted a special one-time exemption to opt out of the provincial short-term rental (STR) principal residence requirement, effective June 1, 2026.

Announced by the B.C. Ministry of Housing on April 17, this decision allows Kelowna to bypass the standard November effective date. This strategic move is designed to accommodate the surge of visitors expected for high-demand summer events, including the BC Summer Games and Touchdown Kelowna.

Why Kelowna Qualified

The exemption was made possible because Kelowna’s rental vacancy rate reached a healthy 6.3%–6.9%. The province requires a sustained vacancy rate of at least 3% for two consecutive years for a community to request such an opt-out.

What This Means for Hosts

Starting June 1, eligible properties will be permitted to operate as "principal use" short-term rentals. This means:

Units no longer need to be the owner's primary residence.
Owners are not required to occupy the unit for a minimum number of days.
Important: All hosts must still obtain and upload a local business licence to comply with city bylaws.

Eligible Areas & Buildings

While provincial rules are loosening, the City of Kelowna is maintaining local control by limiting "principal use" STRs to specific tourism-zoned areas. The city is currently accepting Short-Term Rental Accommodation – Major licence applications for the following:

Neighborhood	Eligible Complexes
Sunset Drive	Discovery Bay Resort, Sunset Waterfront Resort, Waterscapes (Skye Tower & Townhomes)
Downtown	The Brooklyn, Sole Downtown, Sole Kelowna, St. Paul
Lower Mission	Playa Del Sol, The Shore
McKinley Beach	Granite I, II & III, Hilltown
University Dist.	Pinnacle Pointe (Country Club Dr)

*Newer buildings like Caban and Aqua are expected to be included once the opt-out takes full effect.

Before You List: Two Critical Steps

Check Your Strata: Even if the City and Province allow it, your specific building’s strata bylaws must permit short-term rentals.
Business Licence: You must obtain a City of Kelowna business licence and upload it to the provincial registry to remain compliant.

Future Provincial Changes

Kelowna has set a precedent. Following this request, the province is permanently accelerating the opt-out timeline for all eligible B.C. municipalities beginning in 2027. Future requests from other cities must be submitted by February 28 each year to take effect by June 1.

- Kelowna Grapevine -