Kelowna council to consider asking province to fast-track short-term rental exemption

As the chairs were coming down ahead of lunch at Kelly O’Bryan’s Neighbourhood restaurant in Kelowna, B.C., on Friday, hopes for a a stronger tourism season are going up.

“It’s been tough,” said Jeff Blower, the restaurant’s owner. “We’ve been in a pinch.”

The optimism for better tourism days ahead comes as the City of Kelowna looks at loosening restrictions on short-term rental accommodations.

The provincially-mandated rules went into effect in May 2024 in an effort to create more long-term housing amid a growing housing crisis.

But many in the hospitality industry have blamed those restrictions for two back-to-back “soft” tourism seasons.

“For council to come forward and to say they’re going to try to lift these restrictions is awesome,” Blower said. “It’s a baby step but let’s get her done.”

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With the city having met the vacancy requirement of at least three per cent for two years, it’s now looking to opt out of the provincial program.

Council will discuss a staff-prepared report on Monday, which recommends council approve the city moving ahead with seeking an exemption from the province.

The report recommends, “Council directs staff to apply for an exemption from the Provincial Government’s Short Term Rental Accommodation Act.”

It also recommends “Council directs staff to request an accelerated timeline to the exemption approval.”

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If approved, the legislation would allow those restrictions to be eased but, as per legislation, it wouldn’t happen until the fall.

Staff recommends council votes in favour of asking the province for that exemption to be granted sooner.

The report states that staff would like to see it implemented in May, ahead of the tourism season.

2:07 Kelowna business owners ask for short-term rental changes

No one from the city would comment on Friday, stating only in an email, “Because it’s going to council Monday, staff cannot speak to STRs until after Council reviews.”

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However, the report cited numerous major events scheduled in Kelowna this spring and summer as some of the reasons for the expedited exemption request.

Those events include the Memorial Cup, a pair of CFL games  and the B.C. Summer games.

The Kelowna Chamber of Commerce is in support of an exemption.

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The organization stated it has been receiving a lot of feedback from its members, attributing the decline in business to the restrictions.

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“We are fully supportive. We’ve been pushing for this for some time,” said George Greenwood, the chamber’s CEO.

Greenwood said with many visitors already looking at accommodation options, he hopes the province considers the urgency in expediting the matter.

“There is nothing other than political will that’s standing in the way of this. Right? We know all it takes is a swipe of the pen at the ministerial level saying the exemption is granted,” Greenwood said.

“Do what’s right. Do it now, and let’s get our economy on track.”

In an email to Global News, the Ministry of Housing and Municipal Affairs stated it is aware that the exemption request will be a topic of discussion at the city’s next council meeting.

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However, the ministry reiterated its position on Friday, saying, “The period of time between Cabinet approval in late spring and the November 1 effective date provides hosts and visitors a notice period to adjust to any changes to the rules about where short-term rentals are allowed.”

According to the Canadian Mortgage and Housing Corporation, Kelowna recorded a vacancy rate of 3.8 per cent in 2024 and 6.9 per cent in 2025.

2:18 Kelowna vacancy rate now highest in Canada