Kelowna Short-Term Rentals: What Landlords Should Know
LandlordBC remains focused on supporting long-term rental housing. While recent changes to Kelowna’s short-term rental framework may raise questions for rental housing providers and property managers, particularly where tenants ask to operate a short-term rental from their rental unit, it is important to consider the broader impact short-term rentals can have on local communities and the rental housing ecosystem.
When homes that could otherwise serve local residents are shifted into the short-term rental market, the supply of long-term rental housing is reduced. This creates fewer options for tenants, limits tenant mobility, and adds pressure to an already constrained rental system. That lack of movement also affects rental housing providers, as reduced turnover can make it more difficult to renew or improve units between tenancies. Over time, these pressures can distort the rental market, limit housing choice, and create unnecessary strain for both tenants and rental housing providers.
Effective June 1, 2026, Kelowna has been approved to opt out of B.C.’s provincial principal residence requirement for short-term rentals. While this is a notable local change, it does not mean tenants can automatically operate short-term rentals from long-term rental units. Kelowna still has its own licensing, zoning, and business licence requirements. Importantly, where the applicant is a tenant, the City of Kelowna requires an Owner Consent Form signed by both the operator and the property owner.
In practical terms, a tenant needs the rental housing provider or owner’s written consent before they can proceed with a short-term rental business licence application. For rental housing providers and property managers, this is a good reminder that municipal and provincial rules are only part of the equation. The tenancy agreement, strata bylaws, insurance coverage, building rules, nuisance concerns, and overall risk to the property should also be considered.
When a Tenant Asks for Permission
If a tenant asks for permission to operate a short-term rental, rental housing providers should not feel pressured to agree. Kelowna’s local rule change does not give tenants the right to use their rental unit for short-term accommodation.
Before considering consent, rental housing providers should review the tenancy agreement, insurance coverage, and any applicable strata bylaws. Many agreements restrict subletting, assigning, or business use without written consent, and short-term rentals may also create insurance or strata compliance issues.
Rental housing providers should also consider the practical impacts on the building, including guest access, keys and fobs, parking, garbage, noise, security, and complaints from other residents. These concerns are especially important in multi-unit rental buildings.
If consent is granted, it should be in writing and include clear conditions requiring the tenant to comply with all provincial, municipal, strata, licensing, insurance, and tenancy agreement requirements. The rental housing provider should also reserve the right to withdraw consent if the use creates complaints, damage, bylaw issues, insurance concerns, or other problems.
In many cases, the safest approach may be to decline the request. Rental housing providers are not required to take on additional risk simply because a tenant wants to operate a short-term rental business.
When a Tenant Operates an STR Without Consent
A different issue arises if a rental housing provider discovers that a tenant has listed or operated the rental unit as a short-term rental without permission.
If a rental housing provider discovers that a tenant has listed or operated a rental unit as a short-term rental without permission, they should act promptly. This includes gathering evidence, documenting concerns, reviewing the tenancy agreement and any applicable strata or building rules, and cautioning the tenant in writing.
If the activity continues, or if the circumstances are serious, the rental housing provider may need to consider formal enforcement, including a potential One Month Notice to End Tenancy for cause. The appropriate response will depend on the facts, the evidence, and the specific impact of the tenant’s conduct.
The broader lesson is that these issues are best addressed before they arise. Rental housing providers should ensure their tenancy agreements clearly address short-term rentals, business use, subletting, assignment, guest access, keys and fobs, and compliance with municipal and strata rules.