Kelowna starts process to limit short-term rentals

Kelowna Council has started the process of further regulating short-term rentals in the city.

The zoning bylaw changes would remove STRs as a permitted secondary use from all zones unless the zone explicitly allows it as a principal use.

All properties with valid short-term rental accommodation business licences would be permitted to continue operating as a non-conforming use.

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Council has taken the first step to advance changes to the Zoning Bylaw to further regulate short-term rental accommodation in Kelowna.

“We recognize that short-term rentals can supplement the accommodation market and provide homeowners with additional income opportunities but research across the country clearly indicates short-term rentals are having a negative impact on long-term housing availability, housing prices and rental rates,” said Ryan Smith, Director Planning & Development. “As of September 2023, there are currently 1,191 short-term rental accommodations with a valid business license in Kelowna, an increase of 89 per cent since 2020.”

The Zoning Bylaw changes propose to remove short-term rental accommodation as a permitted secondary use from all zones unless the zone explicitly allows it as a principal use – for example, the McKinley Beach Comprehensive Development zone – Area I Village Centre zone – as well as on properties with approved site-specific regulations. All properties with valid short-term rental accommodation business licences would be permitted to continue operating as a non-conforming use in accordance with Section 528 of the Local Government Act – however, this is subject to change should the recently announced Short-Term Rental Accommodations Act, expected to go into effect in May 2024, require additional restrictions.

The City will review legislation from the Province of British Columbia regarding the Short-Term Rental Accommodations Act and associated regulations, including how the Act would be interpreted regarding the application of principal residence requirements and changes to legal non-conforming use protections.

“Our data indicates that as many as 2,400 unique properties (across 74 different short-term rental platforms) may be offering short-term rental accommodation in Kelowna – indicating more than 50 per cent operating without a valid business license,” said Smith. “Kelowna is in a housing deficit and an appropriately regulated process is required to ensure more homes are accessible and available for our current and future residents to live in as long-term rental supply.”

The proposed Zoning Bylaw changes are scheduled for public hearing on Tues. November 21, 2023.