🎯 STRisker: Bulletin - Kelowna, Canada
The city becomes the first in British Columbia to opt out of the province's short-term rental restrictions; hosts in tourism-zoned buildings free to list non-principal residences starting June 1, 2026
Kelowna Wins Early Exit from B.C.'s Principal Residence Rule
Photo by Kolby Milton on Unsplash
The City of Kelowna can now opt out of British Columbia's principal residence requirement for short-term rentals effective June 1 under a one-time provincial regulation aimed at helping the city meet summer tourism demand. The province announced on April 17 that Kelowna was the only municipality to request an exemption this year and also asked for an earlier implementation date ahead of several major summer events.
The exemption comes from B.C.'s Short-Term Rental Accommodations Act introduced in 2023 and fully implemented in June 2025. The Act restricts short-term renting to an owner's principal residence or a secondary suite on the principal residence property wherein communities can request an exemption once vacancy rates reach and stay at 3% for two consecutive years, so requests submitted by March 31 each year will take effect on November 1. Kelowna lobbied successfully to bring that date forward to June 1, citing their packed summer event calendar.
According to the Canada Kelowna's Mortgage and Housing Corporation, rental vacancy surged in back-to-back years by first reaching 3.8% in 2024 before nearly doubling to 6.9% by the end of 2025. This is the highest vacancy rate of any large metropolitan area in Canada, so this track record gave the city the standing to apply. Since the legislation was introduced to restrict short-term rentals, asking rents for long-term rentals have dropped 14.3% across B.C. with Kelowna alone seeing a 5.7% decrease last year.
Starting June 1, short-term rental hosts in Kelowna will no longer need to follow the provincial principal residence requirement when applying for provincial registration. However, the city intends to limit where primary-use short-term rentals can operate to buildings in tourism-zoned areas. To ensure compliance with Kelowna bylaws, hosts will still need to upload a local business licence at the time of application. A report to council last month indicated that 16 Kelowna properties with over 2,000 total units had already begun the process to re-enter the short-term rental market.
Kelowna's approval also prompted the province to accelerate the standard opt-out calendar for all communities. Beginning in 2027, municipalities that meet the vacancy threshold will be able to apply by February 28 with any exemptions taking effect June 1 rather than November 1. The shift reflects a practical adjustment given that the CMHC now publishes rental vacancy data each December and the updated deadlines give local governments a workable window to act on that data ahead of summer.
⦿ Effective date: June 1, 2026
⦿ What changes: Principal residence requirement lifted for eligible hosts in Kelowna
⦿ Where it applies: Tourism-zoned buildings only; most residential areas retain the principal residence rule
⦿ Registration still required: Provincial registration plus local business licence upload at application
⦿ Eligibility threshold: Vacancy rate of at least 3% sustained for two consecutive years
⦿ Standard opt-out calendar (from 2027): Application by February 28, effective June 1
⦿ Legislation: Short-Term Rental Accommodations Act (B.C., 2023)
🐦 Tweet Highlights: Catch the latest discussions on X
Kelowna, B.C., allowed to opt out of short-term rental rules this summer https://t.co/0yrEZEgk8c #CRE
— Western Investor (@westerninvestor) April 17, 2026
Really pleased to share some good news alongside Kelowna’s @MayorTomDyas this morning:
— Christine Boyle (@christineeboyle) April 17, 2026
Kelowna will be the first community to benefit from our accelerated short-term rental opt-out timeline after vacancy rates stayed above 3% for two years 🎉 pic.twitter.com/9i52Obx8mN
Great news for Kelowna! Thanks to @gavindew for all your hard work, and thank you to everyone who made this happen. https://t.co/UnxG3xfmSU
— Trevor Halford (@TrevHal) April 17, 2026
— Vernon Morning Star (@VernonNews) April 17, 2026
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