Okanagan Real Estate Blog

Purpose and Scope of the New Legislation

Effective May 1, 2024, the BC government's new short-term rental rules restrict short-term rentals to only principal residences and one additional unit. This measure aims to increase the availability of long-term rental properties in Kelowna, which has experienced a shortage of housing options for renters.

It’s important to note that the legislation does not apply to:

• Reserve and Nisga’a Lands, or Treaty Lands of a Treaty First Nation (unless opted in).
• Traditional accommodations like hotels and motels.
• Mobile accommodations (e.g., RVs) and temporary shelters like tents.

For investors, this is a pivotal moment. While the new legislation might seem daunting, it also presents an opportunity to reassess and adapt investment strategies in light of these changes.

Enhanced Enforcement Measures

The provincial government is intensifying enforcement by raising fines for bylaw violations to as much as $50,000. 

As well, platforms like Airbnb are now required to display valid business license numbers for Kelowna listings and engage in data sharing to aid regulatory compliance. This step ushers in greater transparency and accountability in the short-term rental sector.

A noteworthy addition is the creation of a provincial registry and compliance unit by late 2024. Every short-term rental in the region will need a registration number, streamlining the process for authorities to monitor and enforce compliance.

Impact on Prospective Homebuyers

For those considering purchasing a home in Kelowna, the new regulations could present unique opportunities. The mayor of Kelowna anticipates a positive effect on the housing situation, drawing parallels with cities like New York where similar measures have increased the availability of long-term rentals and helped stabilize housing costs.

Business Licence Requirements for Short-Term Rentals

An important aspect of these changes includes the requirement for a business licence to operate a short-term rental. This falls under Section 9.10 of the Zoning Bylaw. The annual fees are set at $345 for principal residences and $750 for non-principal residences.

The application process involves several steps, including eligibility checks, completion of various forms (business licence application, fire and safety self-evaluation, good neighbour agreement, and if applicable, a strata consent form), submission of a parking plan compliant with Zoning Bylaw No. 12375, and preparation of a fire and safety evacuation plan. For tenants, an owner consent form is also required.

Staying Informed and Proactive

As the Kelowna property market evolves, staying informed and compliant with these new laws is crucial. Whether you're buying, selling, or investing, I'm always here to provide tailored advice and insights. Together, let's navigate the changing landscape of the Okanagan Valley’s real estate market.