Okanagan Municipalities Tighten Short-Term Rental Rules
What's changing
Starting May 1, 2026, short-term rental (STR) operators in Kelowna and West Kelowna must hold a valid municipal business licence and prove the unit is their principal residence or a legally registered secondary suite. Non-principal-residence STRs will be phased out over 12 months.
Why now?
The provincial Short-Term Rental Accommodations Act, passed in late 2024, gave municipalities the framework to restrict STRs. After a public consultation period, both cities opted for the strictest tier of enforcement.
Impact on investors
Investors who purchased condos specifically for Airbnb income face a decision: convert to long-term tenants, sell, or apply for an exemption (available only in resort-zoned areas like Big White).
Impact on the rental market
The city estimates that up to 600 units could return to the long-term rental pool across both municipalities. If accurate, this would meaningfully reduce the rental vacancy pressure that has kept Kelowna rents among the highest in BC outside Metro Vancouver.
What sellers should know
Properties with proven STR revenue may be harder to market at a premium once the new rules take effect. Listing before May 1 could preserve that value.
This article summarizes municipal bylaw announcements. Consult a legal professional for compliance guidance.
This article summarizes reporting from Castanet and Kelowna Now. Visit the original sources: Castanet, Kelowna Now.
Disclaimer: This summary is generated with the assistance of AI and reviewed by our team. While we strive for accuracy, it is not a substitute for reading the original source material. The content does not constitute professional advice. If you believe something is inaccurate, please let us know.
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