Kelowna to begin lobbying the province for early opt-out of short-term rental legislation

Push for short-term rentals

Photo: Contributed

City will advocate for early STR exemption

As expected, Kelowna city council has given staff the green light to begin lobbying efforts with the province for an early opt-out of short-term rental legislation.

Presently, short-term rentals are only allowed with owner-occupied residences. However, after the city’s rental vacancy rate shot past three per cent (6.9%) for a second consecutive year in 2025, it now qualifies for an exemption.

The city is not planning widespread exemptions to the principal-residence rule, but will allow owners within strata developments that were zoned for short-term rentals prior to the introduction of provincial legislation in 2024 to obtain STR licenses.

The opt-out, if approved, does not take effect until Nov. 1, which the city will argue will hurt tourism during what will be a very busy tourism summer with the Memorial Cup, two BC Lions games and the BC Summer Games all coming to the city.

As an example, development planning manager Nola Kilmartin said there are approximately 4,000 room nights needed for the Memorial Cup with only 2,500 to 3,000 rooms in the city.

“We are requesting a formal resolution from council that we will then immediately submit to the Ministry of Housing and Municipal Affairs for an early exemption request,” said Kilmartin.

“Staff will then return to council in early February with necessary bylaw amendments that would receive initial consideration, but we would not be in a position to adopt the bylaws unless we are able to receive that early exemption approval from the province.”

Kilmartin said some advocacy has already been initiated with the province and the Minister of Housing was positive in conversations with the media, saying the province was looking forward to working with the city.

If the city is not granted an early exemption, she said visitors would have to either book their hotel accommodations early or look for something outside the market.