Visitors to Kelowna, B.C., could have more accommodation options starting next year as the city considers asking the province to ease some of the provincial restrictions on short-term rentals, at least partially.
“I think it’s a step in the right direction,’ said Jesse Bernhardt, who owns a unit at the Playa Del Sol building in the city’s Mission area.
The provincial government brought in the restrictions in early 2024 to address the severe shortage of long-term housing.
The legislation essentially banned short-term rentals unless they were in a person’s principle residence.
However, with the city’s vacancy rate on track to stay above 3 per cent for two consecutive years, the city can apply to opt out of the provincial regulations.
A staff report recommends the city request a partial exemption that, if approved, would allow some commercially-zoned buildings to go back to operating as purpose-built short-term rentals.
Among the criteria the city stated would need to be met are strata consent and buildings with at least 70 units.
“It appears that city staff has gone out, canvassed the community and tried to find that balanced approach and from our perspective, I think they’re doing the right things,” Bernhard said.
Bernhardt said at the Playa Del Sol, strata has already voted in favour.
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“We were too far in one direction and then the province, it’s taken it too far in the other direction, in my opinion, so we do have to find a balanced approach,” Bernhardt said.
“I think we’re closer to something that will work.”
The report states that as opposed to a full exemption, a partial one would protect rental housing stock, limit future speculation, support tourism accommodation and keep enforcement manageable.
However, some believe a partial exemption doesn’t go far enough.
“There should be more places rezoned for this,” said Max Standen, who owns Okanagan Luxury Boat Club.
Standen is one of many tourism operators who blames rental restrictions for two back-to-back dismal summer seasons.
“We’ve seen a tremendous impact in terms of just tourism numbers coming through the valley,” Standen said.
However, even if the province offers relief and approves the exemption, those new rules wouldn’t go into effect until November 2026.
“Another tourism season without these kind of, you know, stays and places for people to come visit is, I think a lot of businesses are going to suffer tremendously,” Standen said.
With thousands of people set to descend on Kelowna for the Memorial Cup in May, additional short-term rental units could be scooped up by all those visitors.
In an email to Global News, the housing ministry would not say if the process could be sped up, stating in part, “People will still be able to list their homes during Memorial Cup, as long as it’s their primary residence.”
The staff report will go before council on Monday.
© 2025 Global News, a division of Corus Entertainment Inc.
