Short-term rentals
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.
Secondary use
- Secondary use short-term rental accommodation is being removed as a permitted use from all zones. However, under the City’s discretion, 498 current licenced secondary use short-term rentals will be granted 'legal non-conforming status' and will be permitted to continue operating in Kelowna, even after May 1, 2024, if they meet provincial principal residence requirements.
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.
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.
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.
The new principal residence requirements and changes to legal non-conforming protections established in the Short-Term Rentals Accommodations Act will come into effect on May 1, 2024. Effective May 1, 2024, principal use short-term rentals will no longer be permitted on any properties where it is currently permitted. This is because short-term rentals are limited under provincial legislation to only being permitted within the host’s primary residence.
Unless you have a current, valid business licence, operating a short-term rental as a secondary use on your property (i.e. the property is your principal residence) is no longer permitted. No new licence applications are being accepted.
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.
The City’s Zoning Bylaw currently defines short-term rental accommodation as a period of 29 days or less. The Government of BC defines short-term rental accommodation service as a period of time of less than 90 consecutive days. The City will be amending the period of time definition in the Zoning Bylaw to be consistent with provincial legislation. Amending the Zoning Bylaw to make this change will require a text amendment and Council approval.
Principal use short-term rentals will be inconsistent with provincial legislation effective May 1, 2024, and permission to operate after this date should not be granted by the municipality.
2024 business licences issued for principal use short-term rentals will only be valid until April 30, 2024. After this date, operating a short-term rental illegally, without a business licence, may result in enforcement and fines.
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 later in 2024.
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.
The provincial Short-Term Rentals Accommodation Act introduces new principal residence requirements and changes to legal non-conforming protections. The new principal residence requirements and changes to legal non-conforming protections will come 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
SHORT-TERM RENTAL OPERATOR'S GUIDEBOOK
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. As per new provincial regulations, we will continue to accept applications for principal use until May 1 which would be allowed to operate until May 1, 2024.
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.
Annual business licences for short-term rentals cost have been pro-rated at a cost of $250 until April 30 for short-term rentals as a principal use. 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
- Make sure you meet the eligibility requirements.
- Complete the following forms: short-term rental business licence application form, self-evaluation fire & safety form, good neighbour agreement form, strata consent form (if applicable).
- Submit a parking plan that meets parking requirements within Zoning Bylaw No. 12375 for short-term rentals in your zone.
- Prepare a fire and safety evacuation plan identifying the location of smoke alarms, carbon monoxide alarms, fire extinguishers, fire exits, and sleeping units.
- TENANTS applying are required to provide the owner consent form.
- Apply for a business licence online or in-person at the Application Centre on the second floor of City Hall (please bring a piece of ID and general information about the business).
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.
- The short-term rental must be within your principal residence unless your property is in one of the three exemption areas (note: these exemptions will not be permitted after May 1, 2024):
- Short-Term Rental as a Principal Use
- Short-Term Rental as a Principal Use with 6-month restriction
- Short-Term Rental as a Principal Use, Permitted Non-Conforming
- 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
The City of Kelowna allows short-term rental accommodation as a principal use in the following exemption areas until May 1, 2024:
| Principal Use | Principal Use with 6-month restriction * | Principal Use, Permitted Non-Conforming |
|---|---|---|
| 3699 Capozzi Rd | 1088 Sunset Dr | 1873 - 1875 Country Club Dr |
| 3700 Capozzi Rd | 1128 Sunset Dr | 1350 St Paul St |
| 3800 Capozzi Rd | 1075 Sunset Dr | 1290 St Paul St |
| (Aqua Project - Permitted in Zoning Bylaw No. 12375, Section 14.15 Site Specific Regulations, Item #5) | 1083 Sunset Dr | 1215 St Paul St |
| CD18/Area I Village Centre | 1089 Sunset Dr | 1471 St Paul St |
| (Permitted in Zoning Bylaw No. 12375 CD18 - McKinley Beach Comprehensive Development Zone, Section 15.4.3-CD18 Permitted Land Uses) | 1093 Sunset Dr | 1585 Abbott St |
| 648- 654 Cook Rd | 1099 Sunset Dr | 3477 - 3499 Lakeshore Rd |
| (Permitted in Zoning Bylaw No. 12375, Section 14.15 Site Specific Regulations, Item #9) | 1123 Sunset Dr | 925 Leon Ave |
| 1129 Sunset Dr | 1083 KLO Rd | |
| 1133 Sunset Dr | 3880 Truswell Rd | |
| 1139 Sunset Dr | 3398 McKinley Beach Lane | |
| (Permitted in Zoning Bylaw No. 12375, Section 14.15 Site Specific Regulations, Item #8) | 3475 Granite Close / 3434
| |
| McKinley Beach Dr | ||
| 3377 Lakeshore Rd |
* The short-term rental accommodation must maintain at least 6 months a year of long-term residential use. For example, the 6 months long term residency could be owner occupied or monthly rentals.
1Short term rentals should park within the designated principal parking for the dwelling unit. Short term rentals shall not park within the visitor parking.
2There are certain properties exempted from renting only in an operator's principal residence, number of bedrooms, and parking requirements.
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.
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.
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.
- 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.
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
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.
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.
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.
- 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.
| Public opinion survey | Fall 2017 |
| Council review of Guiding Principles & public survey results (July 16, 2018) | Summer 2018 |
| Draft regulations, stakeholder engagement | Summer & 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 houses | May 6, 2019 |
| Report to Council - Staff recommend amendments to short-term rental accommodation | October 23, 2023 |
| Public Hearing | November 21, 2023 |
| Report to Council - Provincial Regulatory Changes | January 15, 2024 |
| Bylaw Adoption - Adoption of short-term rental bylaw changes | January 22, 2024 |
| Report to Council - Short-term Rental Property Exemptions | February 5, 2024 |
