Kelowna Short-Term Rentals: What Landlords Should Know
LandlordBC remains focused on supporting long-term rental housing. However, recent changes to Kelowna’s short-term rental framework may raise questions for landlords and property managers, particularly where tenants ask to operate a short-term rental from their rental unit.
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 landlord or owner’s written consent before they can proceed with a short-term rental business licence application. For landlords and property managers, this is a good reminder that municipal and provincial rules are only part of the analysis. The tenancy agreement, strata bylaws, insurance coverage, building rules, nuisance concerns, and overall risk to the property must also be considered.
When a Tenant Asks for Permission
If a tenant asks for permission to operate a short-term rental, landlords should not feel pressured to say yes. Kelowna’s local change does not create a right for tenants to use their rental unit for short-term accommodation.
Before granting consent, landlords should review the tenancy agreement. Many agreements restrict subletting, assigning, or using the premises for business or commercial purposes without the landlord’s written consent. A short-term rental may raise issues under these types of clauses, particularly where the tenant is allowing a rotating group of guests to occupy the unit.
Landlords should also review insurance coverage before providing consent. Short-term rentals may be treated differently than ordinary residential use. If the unit is being used for transient accommodation, the landlord should confirm whether their insurance policy would still respond to a claim involving damage, injury, theft, unauthorized access, or other issues.
If the rental unit is in a strata property, the landlord should also review the strata bylaws. A municipality may allow short-term rentals, but a strata corporation may still restrict or prohibit them. A landlord who consents without checking the bylaws may expose themselves to fines or other enforcement issues.
There are also practical building management concerns to consider. Short-term rentals can create issues around keys, fobs, parking, garbage, noise, guest access, and complaints from other residents. These concerns can be especially significant in multi-unit residential buildings, where the use of one unit can affect the quiet enjoyment and security of others.
If a landlord is prepared to consider the request, consent should be in writing and should be very clear. Written consent should set conditions, including that the tenant must comply with all provincial, municipal, strata, licensing, insurance, and tenancy agreement requirements. The landlord may also wish to reserve the right to withdraw consent if the use creates complaints, damage, insurance concerns, bylaw issues, or other problems.
In many cases, the safest approach may be to decline the request. Landlords 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 where a landlord discovers that a tenant has already listed or operated the rental unit as a short-term rental without permission.
In that situation, the landlord should begin by gathering evidence. This may include screenshots of the listing, guest reviews, photos showing the rental unit, advertisements, complaints from neighbours, messages from the tenant, or evidence of increased traffic in and out of the property. Landlords should keep records carefully and avoid relying only on assumptions.
The landlord should then review the tenancy agreement and any applicable strata or building rules. The key question is whether the tenant’s conduct breaches the tenancy agreement, creates an unreasonable disturbance, creates safety or security concerns, exposes the landlord to liability, or involves an unauthorized sublet, assignment, or business use.
In many cases, the first step will be to send the tenant a written warning. The letter should state that the landlord has become aware of the short-term rental activity, that the landlord has not provided consent, and that the tenant must immediately remove the listing and stop using the rental unit for short-term rental purposes. The letter should also warn that further breaches may result in formal enforcement action.
If the conduct continues, or if the circumstances are serious enough, the landlord may need to consider issuing a One Month Notice to End Tenancy for cause. The appropriate grounds will depend on the facts. Possible concerns may include breach of a material term, unreasonable disturbance, jeopardizing the landlord’s lawful interests, or illegal activity where applicable. Landlords should be careful to connect the notice to the actual facts and evidence rather than simply stating that the tenant operated a short-term rental.
Where the property is in a strata, landlords should also respond promptly to any strata complaints or fines. Even if the tenant caused the issue, the owner may still be the party receiving bylaw enforcement notices from the strata corporation.
The broader lesson is that short-term rental issues should be addressed before they arise. Landlords and property managers 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.
Kelowna’s short-term rental framework may create more questions from tenants and owners, but it does not remove the landlord’s role. Tenants still need owner consent where required, and landlords should only provide that consent after carefully considering the legal, financial, insurance, and operational risks.