Short-Term Rental Rules & Regulations in Kelowna BC

If you’re considering renting your Kelowna property on Airbnb, the rules changed in 2025, and getting it wrong could cost you.

The City of Kelowna updated its short-term rental (STR) regulations to match new provincial legislation from British Columbia. These changes affect anyone wanting to rent out their home (or part of it) for less than 90 days.

You already know about Canada’s tax rules for short-term rentals, but it’s vital to comply with Kelowna’s new rules to make your STR legal. We'll cover everything from the principal residence requirement to safety rules and licensing steps.

Whether you're just starting out or need to update your existing rental, follow these rules to avoid hefty fines and keep your rental business running smoothly.

Kelowna Short-Term Rental Quick Guide

• Only rent your principal residence (where you live 240+ days yearly)
• Get a business licence before listing ($345 annually)
• Install fire extinguishers on each floor
• Test smoke alarms monthly
• Limit rentals to three bedrooms maximum
• Allow only one booking at a time
• Show your licence number in all listings

What Exactly Is a Short-Term Rental in Kelowna?

The City of Kelowna defines a short-term rental as any home, apartment, or room rental for less than 90 consecutive days.

The city updated these new regulations in 2025 to match BC's provincial rules. This protects long-term rentals and ensures there are enough places for locals to live.

These short-term rental regulations affect anyone who wants to list their property on platforms like Airbnb, Vrbo, or any other vacation rental site.

Picture this: You bought a condo near Downtown Kelowna, thinking you could rent it out for weekend getaways and cover your mortgage. Under the new regulations, you can only do this if it's your main home where you actually live most of the year.

Understanding and following the Kelowna STR rules isn't just about avoiding fines. It's about being a good neighbour, helping the tourism industry—vital to Kelowna’s economy—and balancing local housing needs.

Must You Live in Your Rental Property? Principal Residence Rules

The major rule change in Kelowna is that you can only rent out your principal residence for short-term stays.

What counts as your "principal residence” is where you live most of the year, for at least 240 days. This is your main home, not a vacation property or investment property. As a principal resident, you can offer your home as a short-term rental accommodation.

Here's what this means for different property types:

If you own a single detached dwelling with a secondary suite or carriage house, you can rent out that extra dwelling unit in the short term, but only if you live in the main house on the same property.

If you own property in Kelowna's Agricultural Land Reserve, you can offer short-term rentals in your principal residence or a secondary suite, but not in a carriage house. And you're limited to a maximum of four bedrooms.

Agricultural Land Reserve areas cover much of Southeast Kelowna and more inland parts of the North Glenmore neighbourhood.

Some properties may be exempt from the operator's principal residence requirement, including:

• Certain strata-titled hotels/motels
• Timeshare properties
• Fractional ownership properties

If you’re unsure if your specific situation qualifies, the City of Kelowna's business licensing department can help determine if your property meets the requirements under the short-term rental bylaw.

Getting Your Short Term Rental Licence: Step-by-Step

Before you list your property online, you need a business license. Here's how to get one:

1. Check your eligibility—make sure your property is your principal residence first
2. Gather your documents—you'll need government ID and proof of residence
3. Complete safety requirements—install fire extinguishers and smoke alarms
4. Apply online—the fastest way to get your application processed
5. Pay the fees—$50 application fee plus $345 for the annual licence
6. Wait for approval—processing takes two to four weeks

You'll need these specific documents when you apply:

• Completed fire and safety self-evaluation form
• Signed good neighbour agreement
• Fire evacuation plan showing exits, alarms, and sleeping areas

If you're a tenant wanting to rent out your property, you need written permission from your landlord.

If you live in a strata property (condos or townhomes), you must provide the strata consent form showing they allow short-term rentals.

Once approved, you'll pay the $345 business licence fee and receive your licence number. The City of Kelowna requires this licence to be renewed every year.

Keep Your Guests (and Neighbours) Safe: Safety Requirements

Safety rules exist to protect your guests and give you peace of mind. Here's what the City of Kelowna requires for short-term rental accommodations:

• Install a 2a10bc-rated fire extinguisher on each floor. These can't be hidden in closets—they must be wall-mounted and visible.
• Test your smoke alarms monthly and keep a logbook of test dates. Replace smoke alarms after 10 years.
• Have working carbon monoxide detectors in areas near sleeping rooms and fuel-burning appliances.

You also need to create a clear fire evacuation plan showing:

• Where the smoke alarms are
• Where the fire extinguishers are
• All available exits
• Each sleeping unit
• Types of beds available

Provide emergency contact information for someone available 24/7 to handle problems.

This might seem like a lot, but you would likely also want these safety measures in place if you were staying somewhere.

The city conducts regular inspections of short-term accommodation providers. If an inspector asks to check your rental, you must let them in or risk fines.

Safety Checklist:

• Fire extinguisher on each floor
• Working smoke alarms (tested monthly)
• Carbon monoxide detectors
• Evacuation plan posted
• 24/7 emergency contact available

Rules That Limit How You Operate Your Rental

The City of Kelowna places specific limits on how you run your short-term rental:

• You can only accept one booking at a time in each dwelling unit. This means you cannot rent individual rooms to different guests simultaneously.
• No more than two adults can stay in each sleeping unit (bedroom).
• You can rent a maximum of three bedrooms per dwelling unit for short-term rental.
• If your property has a main house, secondary suite, and carriage house, you can only use two of these units for short-term rentals, with a maximum of five sleeping units (bedrooms) in total.
• You must clearly state in all your listings whether you provide parking for guests.
• Your business licence number and the number of permitted sleeping units must also appear in every online listing.

These rules seem strict, but they help prevent over-tourism and keep Kelowna’s lovely neighbourhoods livable for permanent residents.

The most common mistake is not updating your online listings with your licence number and parking information. This is an easy fix that can save you from automatic fines.

What Happens If You Break the Rules?

The City of Kelowna takes enforcement seriously. Break the rules, and you could face municipal fines of up to $500 per day, per offence, provincial penalties (which can be even higher), or even a loss of your business licence.

The most common violations include:

• Operating without a valid business licence
• Renting a non-principal residence
• Not showing your licence number in listings
• Advertising more bedrooms than approved
• Not listing parking information

The city actively searches online platforms to find non-compliant listings. They also respond to neighbour complaints.

During an inspection, city staff can:

• Audit your licence and documents
• Request booking records
• Check that the safety equipment works

The biggest risk is dual enforcement. Under various provincial regulations, the City of Kelowna and the provincial government can fine you separately for the same violation.

To avoid problems, double-check your listings, keep good records, and respond quickly to city notices.

Be a Good Neighbour: Guest Guidelines

Your guests need to know the local rules. As part of your Airbnb host checklist, create a simple house manual covering:

• Noise rules. Kelowna has noise bylaws that protect neighbours from loud parties and disruptions. Make sure guests know quiet hours, especially for outdoor spaces.
• Parking guidelines. If you provide parking, it must be on your property. Let guests know where they can and can't park, including street parking restrictions.
• Pet policies. Kelowna is dog-friendly, but it’s important to tell guests that dogs must be on leash outside unless in off-leash areas. Guests must pick up after their pets.
• Trash and recycling. Show guests where the bins are and when collection happens. Explain Kelowna's sorting rules for garbage, recycling, and compost.

The #1 cause of neighbour complaints is noise, especially from outdoor areas like decks and pools.

If neighbours have concerns, they can report them to the City of Kelowna's Bylaw Services. Repeated complaints could jeopardize your licence renewal.

Where Provincial and City Rules Overlap (or Differ)

Kelowna's short-term rental rules work alongside British Columbia's provincial regulations, which can be confusing. Here's how they fit together:

The provincial principal residence requirement applies to all BC communities with populations over 10,000, including Kelowna. This also applies to other Okanagan Valley communities, including West Kelowna and Vernon.

The provincial government sets the "floor" or minimum requirements, but cities can add stricter rules. When rules differ, you must follow the stricter one.

Provincial rules include:

• Registration with the province
• Principal residence requirement (with some exemptions)
• Platform accountability (Airbnb and Vrbo must verify listings)

The City of Kelowna's additional rules include:

• Specific safety requirements
• Bedroom and occupancy limits
• Business licence requirement
• Good neighbour commitments

These provincial regulations help balance the need for tourist accommodation with housing for long-term rentals. The impact on the tourism industry is carefully monitored to ensure both tourists and locals benefit.

Next Steps for Your Kelowna Short-Term Rental

Kelowna is one of the best cities to buy an Airbnb in Canada, and though setting up a legal STR here takes some work, it's doable if you live in the property.

Remember only to rent your principal residence and get a proper business licence. Following safety requirements, being clear in your listings, and ensuring your guests know how to be good neighbours are all key.

If you’re unsure if your specific situation qualifies, contact the City of Kelowna's business licensing department for guidance.

With proper preparation, your short-term rental can provide extra income while following the rules that help balance Kelowna's housing market.

If the opportunities in Kelowna excite you, contact the agents at KelownaHomes.ca at 250-999-9844 to get in touch with a local real estate agent who can help you find the perfect home in Kelowna today.