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The Ultimate Guide to
Short-Term Rental Licensing
in Kelowna (2026)
BC's new rules, the city licence, the provincial registry, fines, exemptions, and the June 2026 update that changes everything for Kelowna property owners.
Kelowna is the first city in BC to receive an accelerated opt-out from the province's principal residence requirement, effective June 1, 2026. This reopens investment properties in eligible zones. Read what it means for your property.
If you own property in Kelowna and you've been wondering whether you can still list it on Airbnb, you're not alone. Since BC's Short-Term Rental Accommodations Act came into effect in May 2024, property owners across the province have been navigating a maze of new rules, fees, registries, and uncertainty.
The good news: short-term rentals in Kelowna are not only still possible. Right now is genuinely one of the most significant moments for property owners in years. A major regulatory shift took effect June 1, 2026, and understanding it is the difference between being ready to earn and being left behind.
This guide covers everything: the provincial law, the city licence, the registry, the penalties, the exemptions, and exactly what the June 2026 change means for your property.
Regulations change frequently. Always verify current requirements directly with the City of Kelowna and the Province of BC before applying.
What you need to know at a glance
Get licensed in 6 steps
Two licences, one process. Here's the full picture before we dive into the details.
Confirm eligibility
Check whether your property qualifies: principal residence, secondary suite, tourism-zoned building, or resort area.
Gather your documents
Photo ID, proof of residence, fire evacuation plan, strata consent (if applicable), and a signed Good Neighbour Agreement.
Apply for city business licence
Submit online via kelowna.ca. Pay the $50 application fee. Approval takes 2 to 3 weeks for a complete application.
Register with BC's provincial registry
Create an account at host.shorttermrental.registry.gov.bc.ca. Submit property details and pay $100/year (or $450/year for non-principal-residence properties).
Add both numbers to your listing
Your city business licence number and provincial registration number must appear on your Airbnb or VRBO listing. Platforms actively check and remove non-compliant listings.
Renew annually and stay compliant
Both licences need annual renewal. The provincial registry emails reminders 40, 14, and 1 day before expiry. An expired licence carries the same fines as no licence.
Get your two licences
Both are required before you can list. You can apply for them at the same time.
City of Kelowna Business Licence
Apply through the City of Kelowna. Required for all STR operators within city limits.
BC STR Provincial Registration
Register with the Province of BC's short-term rental registry. Required across all of BC.
Both licence numbers must appear on your Airbnb or VRBO listing or it can be removed without warning. Don't list until you have both.
The Law That Changed Everything
On October 26, 2023, British Columbia passed Bill 35, the Short-Term Rental Accommodations Act (STRAA). The key provisions hit Kelowna on May 1, 2024.
Before this law, many Kelowna property owners were running investment condos and non-principal residences as full-time Airbnb rentals. The legislation shut that down for most of BC with one phrase: principal residence only.
Kelowna (population approx. 150,000) is squarely in scope. The rule applies to all short-term rentals defined as stays under 90 consecutive days.
Any accommodation provided for fewer than 90 consecutive days on Airbnb, VRBO, Booking.com, or even Kijiji and Facebook Marketplace.
The law also introduced a provincial registration system, gave platforms like Airbnb enforcement obligations, and dramatically increased the penalties for non-compliance. That rule has since changed for Kelowna specifically. We'll get to that below.
The Principal Residence Rule: What It Actually Means
The words "principal residence" sound simple. In practice, there's a precise legal definition.
Under Kelowna's bylaw, your principal residence is the property where you live for a minimum of 240 days per calendar year (roughly 8 months). It's where you sleep, receive mail, and call home. A property you visit occasionally does not qualify.
The one additional unit you can also rent
Tenants can short-term rent their principal residence too, but you need written permission from your landlord as part of the business licence application.
Kelowna's June 2026 Opt-Out:
What It Means for You
BC's law allows municipalities with a rental vacancy rate above 3% for two consecutive years to opt out of the principal residence requirement. Kelowna's vacancy rate hit 3.8% in 2024 and rose to 6.4% in 2025, one of the highest in Canada.
The city applied, and in a one-time special regulation, the province approved an accelerated effective date: June 1, 2026. Kelowna is now the first city in British Columbia to successfully opt out.
After June 1, Kelowna property owners are no longer required by the province to meet the principal residence rule. However, the City of Kelowna is implementing local restrictions to replace it. Non-principal-residence STRs are only permitted in tourism-zoned buildings or properties that receive STR sub-zone rezoning approval.
If you own a condo in a qualifying downtown or waterfront building, short-term rental as an investment property is back. Contact the City of Kelowna Planning Department to confirm whether your building qualifies.
- Tourism-zoned building owners
- STR sub-zone approved properties
- Investors pursuing rezoning now
City business licence and provincial registration remain mandatory for all Kelowna STR operators, regardless of zone.
Who can legally STR in Kelowna right now
Principal residence owners
You live there at least 240 days per year. The entire home or individual rooms can be listed.
Principal residence + secondary suite
You live in the main unit and rent the basement suite, carriage house, or ADU on the same lot.
Tourism-zoned building owners
Downtown and waterfront Kelowna buildings with tourism zoning. No principal residence requirement post-opt-out.
STR sub-zone approved properties
Properties that have received formal STR sub-zone rezoning approval from the City of Kelowna.
Qualifying strata hotels
Buildings operating like hotels with a staffed front desk and housekeeping services as of December 8, 2023.
Big White Ski Resort
Fully exempt from BC's principal residence rule. No residency requirement. No city business licence needed. Provincial registration still required.
What it costs: full breakdown
| Item | Cost |
|---|---|
| City business licence application fee | $50 |
| City business licence (principal residence) | $345 |
| City business licence (non-principal residence) | $750 |
| Provincial registration (host lives on-site) | $100 |
| Provincial registration (strata hotel or secondary suite) | $450 |
| Typical first-year total (principal residence host) | $495 |
Fees current as of May 2026. Verify at kelowna.ca and gov.bc.ca/ShortTermRental before applying.
The penalties are serious
A host operating without a licence for 30 days could face over $100,000 in combined fines. The city and province can both run penalties simultaneously.
- Licence revocation
- Forced listing removal
- $3,000/day via ticketing
- Binding compliance orders
- Platforms must check numbers
- Future bookings cancelled
Big White and strata hotels
Big White Ski Resort
Properties within the Big White Ski Resort mountain boundary are fully exempt from BC's principal residence requirement. You don't need to live there. You can own a ski chalet or condo and rent it year-round with no residency requirement.
Qualifying Strata Hotels
Buildings operating like hotels with a staffed front desk and housekeeping services as of December 8, 2023 are exempt from the principal residence requirement.
Frequently asked questions
Do I need a business licence to Airbnb my Kelowna property?
Yes. You need both a City of Kelowna business licence and a provincial registration number from the BC STR Registry. Both numbers must appear on your listing or it can be removed without warning.
Can I Airbnb my Kelowna investment property in 2026?
As of June 1, 2026, yes, if your property is in a tourism-zoned building or has received STR sub-zone approval from the city. Outside those zones, the principal residence rule still applies locally. Contact the City of Kelowna Planning Department to confirm your building's eligibility.
How long does it take to get a short-term rental licence in Kelowna?
A complete city application takes 2 to 3 weeks to process. Combined with provincial registry approval, most hosts are fully licensed and live within 3 to 4 weeks. Having all your documents ready before you apply makes a significant difference.
What happens if I operate without a licence?
Your listing can be removed from Airbnb without notice. The City of Kelowna can fine you up to $500/day. Provincially, fines reach $3,000/day per infraction or $50,000 per conviction. Both can run simultaneously. A host operating unlicensed for 30 days faces over $100,000 in combined exposure.
Does the BC short-term rental law apply to Big White?
No principal residence requirement at Big White. As a designated mountain resort, the entire area is exempt. You still need to register with the BC STR Registry, but there is no city business licence requirement and no residency requirement. Big White remains one of the most investment-friendly STR markets in BC.
The Bottom Line: Is Now the Right Time?
For Kelowna property owners, right now is genuinely one of the best moments to enter or re-enter the short-term rental market in years. The June 2026 opt-out reopens the investment property conversation for eligible buildings. Tourism demand continues to grow across the Okanagan: wine season, Ironman, ski weekends, Memorial Cup, and BC Summer Games.
The hosts who thrive under these rules are the ones who get licensed early, keep their compliance current, and run their properties professionally. The ones who struggle are trying to manage licensing, guests, cleaners, and 10pm maintenance calls all at once.
If you're ready to be in the first group, we'd love to talk.
Your property is ready.
Let us handle the rest.
Navigating licensing, setting up your listing, managing guests, coordinating cleaners. It's a lot. We do all of it so you can just collect your monthly statement.