Since June 1, 2026, some Kelowna properties can be run as full-time short-term rentals again — but only a short list of buildings, and the rules for everyone else haven’t loosened. If you’re buying with Airbnb income in mind, the address matters more than the listing description.
What changed on June 1, 2026
B.C.’s Short-Term Rental Accommodations Act limits short-term rentals (stays under 90 days) to the host’s principal residence in most communities over 10,000 people. Communities with a rental vacancy rate of at least 3% for two years in a row can ask to opt out.
Kelowna asked, and the Province passed a one-time regulation letting the city opt out effective June 1, 2026 — the first B.C. municipality to do so. From 2027, other qualifying communities can follow the same timeline.
The catch: the City kept its own principal-residence rule for almost everything. The exemption only applies to buildings rezoned into the City’s STR subzone.
The two kinds of short-term rental licence
| Minor (secondary use) | Major (principal use) | |
|---|---|---|
| Who can operate | Someone renting out their own principal residence, or a bedroom in it | Any owner, no occupancy requirement |
| Where | Most residential properties in Kelowna | Only properties rezoned to the STR subzone |
| Principal residence rule | Yes — you must live there at least 240 days a year | No |
| Suites and carriage houses | Allowed if the principal resident lives in another unit on the same lot | Per subzone approval |
Which properties qualify for full-time rentals
The City publishes the eligible list. As of November 2026 it includes about 25 addresses, mostly lakeside resort and downtown buildings — for example addresses on McKinley Beach Drive and McKinley Beach Lane, Lakeshore Road, Sunset Drive, St. Paul Street, Abbott Street, Leon Avenue, Capozzi Road and Truswell Road. Check the current list on the City’s site before you write an offer.
A strata building that isn’t on the list would need to apply for rezoning, and the application needs a consent form signed by the strata council. That’s a process, not a sure thing — don’t pay a premium for a unit on the assumption it will be approved.
Rules every Kelowna host follows
- A City business licence: $50 to apply, then $345 a year.
- Registration with the Province’s short-term rental registry, with the City licence uploaded.
- No more than 3 bedrooms per unit, 2 adults per bedroom, and one booking at a time.
- On a lot with a house plus a suite or carriage house: at most 2 units and 5 bedrooms in total.
- Your licence number, bedroom count and whether parking is provided must appear in every listing.
- Fire safety: a wall-mounted extinguisher on each floor, monthly smoke alarm tests with a logbook, and a 24/7 contact.
- In the Agricultural Land Reserve, up to 4 bedrooms, and not in a carriage house.
Fines can reach $500 per day per offence, and the Province can enforce too.
A buyer’s checklist
- Confirm the exact address is on the City’s eligible list — not just the building name or complex.
- Read the strata bylaws and recent minutes. A strata can restrict rentals even where the City allows them. My strata document review guide covers what to look for.
- Ask for the seller’s licence and booking history if income is part of the price.
- Check the municipality. West Kelowna and Lake Country (including Lakestone) are separate municipalities with their own rules.
- Talk to your lender and accountant early. Short-term rental income and use can affect financing and tax.
- Write it into your subjects. Make your offer subject to your review of zoning, strata documents and licensing — see my offer conditions guide.
The bottom line
For most Kelowna homes, nothing has changed: you can host short-term guests in the home you live in, with a licence. Full-time rentals are back only in a few approved buildings, and those units are priced accordingly.
If you’re weighing a McKinley Beach or downtown condo with rental income in mind, I’m happy to pull the eligible list, the strata documents and comparable sales for you — no pressure. Get in touch.
I’m a REALTOR®, not a lawyer or accountant. Rules change — confirm details with the City of Kelowna and a professional before you buy.