Airbnb Rules in Kelowna

Kelowna’s short-term rental rules changed dramatically in 2025, reshaping how Airbnb hosts and other short-term accommodation providers operate across the city. These updates align local bylaws with new British Columbia provincial regulations that introduced a strict provincial principal residence requirement, tighter enforcement and mandatory licensing rules for anyone offering rental stays of less than 90 days. The city of Kelowna now requires all short-term rentals to operate from the host’s principal residence and provincial legislation limits commercial activity by restricting most non-owner-occupied properties from entering the short-term rental market.

This guide breaks down Kelowna’s updated regulations in a clear and practical way. It explains exactly what short-term rental hosts must do to stay compliant, how provincial legislation interacts with the city’s rules and what steps operators must follow before accepting guests. The goal is simple. Support proactive compliance, reduce confusion and help hosts understand how to operate legally under Kelowna’s new regulatory framework.

What this guide covers

This guide lays out the complete legal requirements for operating a short-term rental in Kelowna under the city’s 2025 regulations and British Columbia’s provincial rules. You’ll find clear explanations of Kelowna’s principal residence requirement, how the provincial legislation affects local governments across the province and the full business licence process including documentation, timelines and verification.

You’ll also learn how short-term rental regulations interact with provincial standards, what a valid business licence requires, the safety measures you must have in place and how enforcement works when operators fall out of compliance. This guide does not include general hosting advice or marketing strategies. It focuses strictly on legal requirements, operational rules and the steps Kelowna vacation rental hosts must follow to operate a short-term rental accommodation legally.

Who this is for

This guide is built for anyone operating or considering a short-term rental in Kelowna. That includes Airbnb hosts, property managers and homeowners trying to understand how the new provincial rules and the city’s bylaws fit together. It’s also useful for real estate investors evaluating whether a property can legally operate as a short-term rental accommodation, especially under the new principal residence requirement. Whether you’re already hosting or planning your first listing, you’ll find practical steps and regulatory clarity to help you stay compliant and avoid costly enforcement actions.

Why This Matters

Kelowna has tightened its short-term rental rules significantly and the combination of city regulations and provincial legislation makes compliance non-negotiable. Operators who ignore these requirements risk daily fines, licence suspension or full removal from booking platforms that now verify business licence numbers automatically. The update aims to protect long-term rental availability, maintain fairness across neighborhoods and ensure vacation rental hosts operate with the same safety and accountability expectations as other tourist accommodation providers.

What this really means is that every host needs to understand the principal residence requirement, the business licence process and the enforcement tools the city of Kelowna now uses. Clear compliance not only avoids penalties but supports responsible hosting and strengthens community trust.

What you’ll learn:

• How the provincial principal residence requirement affects every short-term rental host in British Columbia

• What Kelowna considers a principal residence and how to document it

• The complete business licence application process, including timelines, fees and verification

• Safety measures and equipment required under the city’s rules

• Platform listing expectations, including displaying your business licence number

• How enforcement works and what penalties apply when hosts fall out of compliance

Each section is designed to provide clarity, reduce confusion and give hosts straightforward steps to operate a short-term rental in Kelowna without running into regulatory issues.

Understanding Kelowna’s Short-Term Rental Legal Framework

Kelowna defines a short-term rental as any dwelling unit rented for less than 90 consecutive days and the city’s updated regulations now align closely with the provincial rules introduced across British Columbia in 2025. These new regulations apply to all communities over 10,000 people, which places Kelowna squarely under the provincial principal residence requirement and the expanded enforcement system built to support proactive compliance.

The framework is built around two goals. First, to protect long-term rental availability by limiting short-term rental accommodations to an operator’s principal residence. Second, to ensure consistent safety standards and accountability for all short-term rental hosts across the province. The city of Kelowna updated its own bylaws to reflect these provincial standards, tightening business licence requirements, clarifying permitted sleeping units and expanding enforcement tools that allow city staff to monitor listings, verify documentation and intervene when operators fail to meet the rules.

What this creates is a shared regulatory model. The provincial government establishes the baseline, while local governments add specific rules to address community needs. Kelowna’s version includes several bylaw updates that enhance enforcement, reduce confusion and provide clarity for operators trying to navigate both regulatory levels at once.

Principal residence requirement

Kelowna’s short-term rental system is built around one rule that sits above everything else. You can only operate a short-term rental from your principal residence. Under provincial legislation, your principal residence is the place you live for at least 240 days each calendar year and it must be the same property where you file taxes, receive mail and carry out day-to-day life. The city relies on this definition to distinguish legal short-term rental hosts from commercial operators running investment properties or second homes.

In practical terms, this means only one dwelling per person qualifies. The operator must actually live in the home and return to it regularly. Eligible dwelling types include single detached homes, legal secondary suites and carriage houses located on the same property as the operator’s principal residence. Properties on the Agricultural Land Reserve face additional limits, including a cap of five sleeping units, even if the structure is larger.

This rule matters because it ties every business licence and provincial registration requirement back to the same address. If the home is not your principal residence, you simply can’t operate a short-term rental there, even if the space meets zoning or building code standards. The city and province treat the principal residence requirement as the cornerstone of short-term rental regulations and most enforcement actions begin with verifying whether a host actually lives where they claim.

Business license vs. short-term rental license

Kelowna doesn’t separate its business licence and its short-term rental authorization into two different permits the way some cities do. Instead, the city of Kelowna issues a single business licence that specifically covers short-term rental accommodation activity. This licence is mandatory for all short-term rental hosts and must be tied to the operator’s principal residence. Without a valid business licence in place, it’s illegal to operate a short-term rental or accept bookings for stays of less than 90 days.

This licence works in tandem with provincial regulations introduced across British Columbia. The provincial government requires every operator to register their short-term rental with the provincial system, while local governments like Kelowna verify principal residence status, check permitted sleeping units and conduct safety inspections. Both levels of regulation reinforce each other. The province sets the baseline standards and the city’s rules build on them through Kelowna’s short-term rental bylaw, which includes safety measures, operational rules and ongoing enforcement requirements.

Because everything connects back to the operator’s principal residence requirement, both the city’s business licence and the provincial registration must list the same property. Matching addresses help city staff confirm compliance quickly and reduce confusion during business licence applications, renewals or inspections. For hosts, the dual system might feel like an extra step, but it exists to support proactive compliance and maintain fairness across all short-term accommodations in the city.

Licensing Requirements and Application Process

Kelowna requires every short-term rental host to secure a business licence before operating a short-term rental accommodation or listing a property for stays of less than 90 days. The application process verifies the operator’s principal residence, confirms the dwelling unit type and checks that all safety measures are in place. The province and the city now coordinate closely, so hosts must meet both the provincial principal residence requirement and the city’s licensing standards before they can operate a short-term rental legally.

Required documentation

To process business licence applications, the city of Kelowna requires clear documentation proving that the property is the operator’s principal residence. Applicants must provide government-issued identification showing the Kelowna address, along with secondary documents such as utility bills, property tax statements, voter registration records or vehicle insurance that matches the same property. Renters must include a lease agreement explicitly allowing short-term rentals.

Property owners must also submit proof of ownership, a floor plan showing permitted sleeping units and documentation confirming the legal status of any secondary suites or carriage houses located on the same property. The city may request additional verification if the provided documents don’t clearly establish the operator’s principal residence. City staff conduct compliance checks and may review provincial registration details to ensure consistency.

This documentation requirement supports proactive compliance and helps both the city and province maintain fairness across short-term rentals by ensuring only principal residents operate short-term accommodations.

Kelowna Business Licence Documentation Checklist

Application fees and timeline

Kelowna’s business licence fees vary depending on the dwelling unit type, but hosts should expect to pay the standard fee outlined in the city’s rules for short-term rental regulations. Annual renewals are required to keep the licence active and operators must maintain compliance with provincial rules and city bylaws to avoid delays or revocation.

Business licence applications typically take two to four weeks to process once all documents are submitted. The city of Kelowna does not accept partial applications, so incomplete submissions often cause delays. Quicker processing is possible when all required information is uploaded at once, including safety documentation and confirmation that the property meets the principal residence requirement.

Once approved, the business licence number must appear on all platform listings and hosts must keep it visible during inspections or compliance reviews.

Provincial registration requirement

In addition to the city’s business licence, British Columbia’s provincial regulations require all short-term rental hosts to register with the provincial system. Registration verifies the operator’s principal residence with the provincial government and ensures consistency across local governments. Hosts must complete this step before operating a short-term rental or updating their business licence applications with the city.

The provincial registration creates a centralized compliance framework used to enforce provincial legislation, confirm address eligibility and support enforcement actions when operators fail to meet the provincial principal residence requirement. Provincial registration must be renewed according to provincial standards and must always match the information provided to the city of Kelowna.

Operational Rules and Compliance Standards

Kelowna’s short-term rental regulations don’t stop at licensing. Once a host receives approval, they must follow ongoing operational rules designed to maintain fairness, protect long-term rental availability and support community needs across the city of Kelowna. These expectations apply to all eligible dwelling types, including single detached dwellings, secondary suites and carriage houses on the same property as the operator’s principal residence.

The city uses these rules to monitor short-term stays, confirm ongoing compliance and enhance enforcement when operators ignore or misunderstand the short-term rental regulations set out in the short-term rental bylaw. The goal is to create a system that supports good neighbours, balances community interests and keeps Kelowna’s local economy functioning without losing essential housing stock.

Below is a clear breakdown of the key operational rules every host must follow once they begin operating short-term rentals in Kelowna.

Safety equipment and building requirements

All licensed short-term accommodations must meet safety expectations established through provincial rules and the city’s regulations. These requirements apply whether the rental space is a private room, a secondary suite or a carriage house located on the same property. City staff may inspect at any time and missing equipment or ignored maintenance can result in immediate penalties.

Before listing your rental, renewing your licence or responding to inspection requests:

1. Install smoke alarms

Place functioning smoke alarms in bedrooms, hallways and common areas. Test monthly and record test dates as part of your safety documentation.

1. Install carbon monoxide detectors

Required when a dwelling includes fuel-burning appliances or an attached garage. These detectors must be positioned outside sleeping areas and maintained according to the manufacturer's instructions.

1. Provide fire extinguishers

Install at least one accessible, wall-mounted extinguisher on a main level or near the kitchen. Ensure the unit has a current inspection tag.

1. Maintain clear exits

Hallways, stairwells and exit doors must remain unobstructed. This applies to all rental configurations, including secondary suites and carriage houses.

1. Post emergency information

Include fire evacuation plans, emergency contacts and the rental’s civic address in a visible location.

1. Ensure visible address numbers

Exterior address numbers must be clearly readable from the street for first responders.

Advertising and listing requirements

Kelowna’s short-term rental rules connect directly with provincial regulations and platform monitoring tools. Hosts must:

• Display their business licence on all listings

• Use accurate descriptions of the short-term rental

• Clearly state the number of permitted sleeping units

• Follow building, strata or landlord requirements

• Avoid misleading or incomplete representations

The provincial government and city staff coordinate listing checks, which helps enhance enforcement and reduce illegal short-term rentals.

Guest communication and neighbour relations

Kelowna expects hosts to maintain fairness within their neighbourhoods. Good communication prevents small issues from becoming formal complaints.

Hosts should:

• Share clear house rules about parking, noise and outdoor use

• Address noise concerns quickly

• Remind guests about quiet hours

• Maintain a reachable phone number for emergencies

• Actively prevent patterns that harm long-term rental availability

Maintaining strong neighbour relations helps protect the local economy and strengthens trust between short-term accommodation providers and the community.

Financial Requirements and Tax Responsibilities

Kelowna’s short-term rental rules don’t include a city-specific lodging tax the way some jurisdictions do, but operators still face financial obligations tied directly to their business licence and provincial regulations. These responsibilities help local governments maintain consistent oversight across short-term rentals while supporting the community’s needs and the broader tourism industry.

Short-term rental income must be reported accurately and hosts must understand how provincial rules, platform remittances and annual tax filings intersect. Even though platforms often handle certain fees automatically, hosts remain responsible for ensuring everything is documented correctly.

Provincial requirements for short-term rental operators

British Columbia requires all short-term rental operators to follow provincial standards once they begin offering short-term stays. These include:

• Registration through the provincial short-term rental registry

• Compliance with the provincial principal residence requirement

• Accurate declaration of revenue from rental activity

• Adherence to any additional provincial rules introduced through new regulations

The province may share registration data with the city of Kelowna, which helps city staff align business licence applications with provincial records.

Income reporting and annual tax obligations

Short-term rental revenue must be reported as taxable income. Hosts must:

• Track all rental income earned during the calendar year

• Maintain records for longer periods if the province or city staff request verification

• Understand how expenses and deductions apply under federal and provincial tax rules

Revenue from short-term rentals counts as business income, even when the rental occurs in a principal residence. Hosts should keep clear records of:

• Cleaning fees

• Maintenance costs

• Supplies

• Utilities (when applicable)

• Repairs

• Depreciable items related to hosting

Accurate documentation helps provide clarity in case of audits or compliance reviews.

Platform-collected fees and remittances

Booking platforms may collect certain taxes or fees automatically, depending on how provincial rules interact with platform agreements. Even when platforms collect fees, hosts must maintain backup records showing the amounts collected and remitted. This ensures:

• Compliance with annual income reporting

• Smooth licence renewals

• Fewer issues during business licence applications or updates

Platform reports also help confirm earnings and expenses during longer period reviews or cross-checks performed by provincial or local governments.

Insurance considerations for Kelowna hosts

While Kelowna’s short-term rental regulations don’t mandate a specific insurance policy, hosts are strongly encouraged to review their coverage. Many standard homeowner policies do not cover short-term rentals. Hosts should confirm whether their insurer:

• Allows short-term rentals in a principal residence

• Covers incidents during short-term stays

• Requires additional riders or disclosures

Proper insurance supports fairness and reduces risks to guests, neighbours and the host’s own property.

Common Challenges and Solutions

Even with clear short-term rental regulations in place, many operators run into predictable issues once they begin hosting. Most of these challenges come down to documentation gaps, misunderstandings about provincial rules or missed operational requirements that city staff routinely check during inspections or business licence applications. Here’s a breakdown of the most common pitfalls and how to avoid them.

Challenge 1: Principal residence documentation issues

Kelowna’s licensing system relies heavily on confirming the principal residence requirement. Problems often happen when documents don’t match, addresses differ between IDs or hosts recently moved.

Solution: Keep multiple forms of documentation ready. This may include:

• Government-issued ID with the Kelowna address

• Utility bills for the same property

• Vehicle insurance or registration

• Property tax statements

• Lease agreements for secondary suites allowed for short-term rentals

Providing several documents at once helps licensing staff process business licence applications faster and supports quicker processing during renewals or inspections.

Challenge 2: Confusion around provincial registration and local requirements

Some hosts assume city licensing automatically covers provincial registration. Under the new regulations, this is not the case. Both levels of compliance must match.

Solution: Complete the provincial registration first, confirm the address aligns with your business licence application and keep your confirmation number handy. This helps reduce confusion when the city reviews your short-term rental applications and ensures consistency across all provincial and local government systems.

Challenge 3: Safety equipment non-compliance

Missing smoke alarms, expired fire extinguishers or incorrectly placed carbon monoxide detectors are among the most common issues flagged during inspections.

Solution: Follow a simple safety checklist:

• Test smoke alarms monthly

• Keep carbon monoxide detectors outside each sleeping area

• Replace or re-tag fire extinguishers promptly

• Keep exit routes open

• Maintain visible address numbers

Proactive safety maintenance protects your guests and lowers the chances of enforcement actions.

Challenge 4: Neighbour complaints during short-term stays

Noise, parking concerns and waste issues often lead to neighbour disputes, which can escalate to formal complaints.

Solution: Set clear expectations from the start.

• Provide house rules guests actually read

• Address complaints quickly

• Respect quiet hours

• Clarify parking instructions

• Monitor outdoor areas during short-term stays

Maintaining good neighbours is a key part of preserving long-term rental availability and keeping community needs in balance.

Challenge 5: Listing errors and inaccurate information

Many problems begin with simple mistakes on platform listings. Missing business licence details, incorrect descriptions of secondary suites or misrepresented amenities can trigger compliance reviews.

Solution: Audit your listing regularly.

• Check that your business license appears correctly

• Ensure the rental description matches the actual space

• Verify occupancy limits

• Avoid overstating amenities

• Keep photos updated

Small corrections go a long way toward maintaining fairness and supporting consistent citywide enforcement.

Penalties and Enforcement Actions

Kelowna enforces its short-term rental regulations through a coordinated system involving city staff, platform monitoring and provincial oversight. When hosts fail to follow the principal residence requirement, ignore licensing rules or operate without approval, enforcement actions can be swift.

Common violations and fines

The city of Kelowna may issue penalties for:

• Operating a short-term rental without a business licence

• Listing a property that isn’t the operator’s principal residence

• Missing required safety equipment

• Exceeding occupancy or permitted sleeping unit limits

• Ignoring provincial registration rules

Fines can be issued daily until the violation is corrected and both the city and the province may apply penalties at the same time. This makes non-compliance costly, even for short periods.

Licence suspension or revocation

A business licence can be suspended or revoked when hosts:

• Provide false documentation

• Repeatedly violate the short-term rental bylaw

• Ignore warnings from city staff

• Operate ineligible secondary suites or carriage houses

Once revoked, a host may not reapply unless they can demonstrate full compliance with all provincial rules and local bylaws.

Platform-based enforcement

Booking platforms now verify business licence numbers and provincial registration. Listings missing required information may be removed automatically, limiting the ability to host short-term stays.

Understanding these penalties highlights why it’s essential to follow Kelowna’s short-term rental regulations from the moment you apply through every stay.

Conclusion and Next Steps

Kelowna’s short-term rental regulations create a clear framework for hosts who operate from their principal residence and follow the city’s licensing and provincial registration rules. While the new regulations may feel strict, the steps are straightforward once you understand how the business licence process, provincial standards and day-to-day operational expectations fit together. Staying compliant keeps your listing active, supports the local economy and helps maintain fairness across neighbourhoods.

To get started:

• Confirm your home meets the principal residence requirement for the full calendar year

• Gather documentation for your business licence application, including ID, utility bills and ownership or lease records

• Complete your provincial registration before listing the rental

• Install all required safety equipment and keep test dates recorded

• Review your listing regularly to ensure accuracy and compliance with the short-term rental bylaw

Taking these steps now helps prevent fines, delays and avoidable enforcement actions later. With the right preparation, operating a compliant short-term rental in Kelowna is entirely achievable.

Frequently Asked Questions

Can I run a short-term rental in Kelowna if I live on the property but spend part of the year elsewhere?

Yes, but only if the home still qualifies as your principal residence for the calendar year. This generally means you must live in the home for the majority of the year and maintain it as your primary address for taxes, identification and daily life. Extended seasonal travel doesn’t automatically disqualify you, but you’ll need documentation that proves the home is still your main residence.

Do I need landlord permission if I rent a suite and want to host short-term stays?

Yes. If you are a tenant or you live in a secondary suite that you do not own, the property owner must provide written permission before you can apply for a business licence. Without this approval, the city will not process your application and provincial registration may also be denied.

Are there areas of Kelowna where short-term rentals are more likely to be approved?

Approval is tied to the principal residence requirement, not the neighbourhood. That said, areas with more legal secondary suites or carriage houses may offer more opportunities for eligible rentals. Some strata buildings and townhouse complexes may have their own restrictions, so building rules can have a bigger impact than zoning.

Can I switch between long-term rental and short-term rental use during the year?

Yes, but you must still meet the principal residence requirement if you want to operate short-term rentals. If you rent the home long-term for too many months of the year or if someone else becomes the primary occupant, the property may no longer qualify for short-term rental use.

How often does Kelowna check for compliance or conduct inspections?

Inspections are typically triggered by licence applications, safety concerns or complaints. However, proactive compliance checks may happen at any time, especially in neighbourhoods with higher numbers of short-term rentals. Provincial registration data and platform monitoring tools can also prompt reviews without a formal complaint.

Can short-term rentals operate year-round if the property meets all requirements?

Yes. There is no seasonal restriction on short-term rentals as long as the property remains your principal residence and you maintain full compliance with city and provincial rules. Hosts are free to accept bookings throughout the year as long as the business licence is current.

Do I need additional parking spaces for my short-term rental?

Kelowna does not require new parking to be built specifically for short-term rentals, but guests must follow existing parking rules for the property. If you share a driveway, rely on street parking or have limited space, you’ll need to set clear expectations to avoid neighbour complaints.

What happens if my business licence expires while I still have upcoming bookings?

If your licence expires, you cannot legally host guests until it’s renewed. Any stays occurring during the lapse could result in penalties. Hosts should renew early to avoid processing delays, especially during periods when the city receives a higher volume of business licence applications.