Kelowna, B.C., allowed to opt out of short-term rental rules this summer

The B.C. government has often touted its short-term rental crackdown as a force for lower housing costs. Now, it's planning to relax the rules in Kelowna.

KELOWNA — The Okanagan city of Kelowna, B.C., is being allowed to opt out of rules limiting short-term rentals in time for this summer’s tourism season.

The one-time allowance comes as the province speeds up the process of allowing communities to opt out if they have rental vacancy rates of at least 3 per cent.

Under the rule changes effective in 2027, such communities will have to submit opt-out requests each year by Feb. 28, instead of the previous March 31 deadline.

Approved opt outs will then become effective from June 1, instead of Nov. 1, but the Housing Ministry says Kelowna is being put on the accelerated timeline this year “recognizing major summer events planned in the community in 2026.”

The rules that limit the short-term rental of principal residences, introduced in 2023, are designed to increase housing supply, but they have faced opposition from some communities reliant on tourism.

Housing Minister Christine Boyle says in a statement that the rules are to make sure homes are returned to the “long-term market” while “communities with healthy rental markets” have flexibility to provide more tourist accommodations.

“Accelerating these timelines will assist communities like Kelowna that have brought vacancy rates to healthy levels through their hard work on housing to make the most of the summer tourism season,” Boyle says while noting the city is maintaining the principal-residence requirement in most residential areas.

Kelowna-Mission MLA and Opposition economic development critic Gavin Dew says he welcomes the move, but the decision was “overdue.”

This report by The Canadian Press was first published April 17, 2026.