If you own a condo you rent on Airbnb, or you are thinking of buying one to do so, BC’s short-term rental rules changed the math. Since May 1, 2024, the province limits where short-term rentals are allowed, and Kelowna is squarely affected. Here is what the rules say and what they mean if you are buying, selling, or holding a property in the Central Okanagan.
What changed under BC’s short-term rental rules
Under the provincial Short-Term Rental Accommodations Act, in communities with a population over 10,000, short-term rentals (stays under 90 days, the kind listed on Airbnb or Vrbo) are limited to a host’s principal residence, plus one secondary suite or accessory dwelling on the same property. Kelowna and West Kelowna both fall under this principal residence requirement.
In plain terms, the era of buying a condo purely to run it as a full-time short-term rental is largely over in the city. You can still short-term rent the home you actually live in, plus one extra unit on that property, but a separate investment condo you do not live in no longer qualifies in most of Kelowna.
What is exempt
The principal residence requirement does not apply everywhere. Exemptions include smaller communities under 10,000 people (and not within 15 kilometres of a larger one), designated mountain and destination resort areas, and certain accommodation types that were never meant to be long-term homes, such as strata-titled hotels and fractional-ownership properties. If a property’s short-term rental income matters to you, the exemption status of that specific building and location is the first thing to confirm.
What it means if you are buying
Do not assume a condo can be used as a short-term rental. Before you buy with that plan, check the provincial rules, the local zoning, and the strata bylaws, which can restrict short-term rentals regardless of the provincial framework. A unit in an exempt resort property is a very different proposition from a standard downtown condo, and the difference can change the investment entirely. For the broader rental and investment picture, see our Kelowna real estate market update, and if you are weighing a condo, our guide to strata fees is worth a read.
What it means if you are selling
If you are selling a property that was marketed on its short-term rental potential, that selling point has narrowed in most of Kelowna. Pricing and positioning should reflect the home’s value as a residence or a long-term rental rather than its old nightly-rental income. We can help you frame it for the buyers who are actually in the market now. You can see what is currently listed among Kelowna condos for sale.
Frequently asked questions
Generally yes, if it is your principal residence, plus one secondary suite or accessory dwelling on the same property, and your strata bylaws and local rules allow it. A separate property you do not live in usually no longer qualifies.
The principal residence requirement applies in communities over 10,000 people, which includes Kelowna and West Kelowna. Smaller communities and designated resort areas can be exempt.
Yes. Strata bylaws can restrict or prohibit short-term rentals independently of the provincial rules, so always check the bylaws for the specific building.
These rules are not the end of investing in Kelowna real estate, but they do reward doing your homework on a specific property before you buy. If you would like help confirming what is and is not allowed for a home you are considering, we are glad to walk through it with you.
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