The City of Kelowna is set to align its short-term rental (STR) rules to match provincial regulations.

Council approved more restrictive STR bylaws in a 4-3 vote in January 2024. They include no new secondary-use STRs, but existing secondary-use STRs could keep operating if they had a valid business license.

According to a city staff report, the goal was to protect housing and avoid issues for neighbours of STRs. But the restrictions drew criticism as illegal operations still popped up. Some businesses and developers claimed the restrictions hurt their operations and the local economy.

The report notes that Kelowna91裸聊视频檚 tourism and housing markets are complicated, and it91裸聊视频檚 difficult to blame STR regulations only. Staff state that STR listings dropped by 32.5 per cent in summer 2024 compared to 2023, but demand also fell due to inflation, wildfires, and extreme weather. 

Hotels saw slight gains, but overall visitor spending was down. STR rules may have helped housing affordability, but other factors91裸聊视频攕uch as more rental developments91裸聊视频攍ikely had a bigger impact, according to the report.

In May 2024, the province introduced Bill 35 which set STR rules for larger cities. They stipulate that STRs must be in a primary residence (where the owner lives) or one extra suite on the same property. Municipalities can apply to relax the rules if their vacancy rate is above three per cent for two years. Kelowna91裸聊视频檚 rate hit 3.8 per cent in 2024, so this could happen in 2026.

The staff report lists several reasons to align Kelowna91裸聊视频檚 STR rules with the province91裸聊视频檚 including access to a federal grant for enforcement, reducing confusion for operators and visitors, and a potential boost to the city91裸聊视频檚 reputation for tourism.

With more available rental housing, and improving vacancy rates, now might be the right time to loosen restrictions, the staff state.

Council will consider the report at its Jan. 20 meeting.