Kelowna council seeks fast-tracked short-term rental exemption

Kelowna council to consider requesting provincial exemption to ease short-term rental rules ahead of tourism season

Kelowna Restaurant Owner Optimistic About Tourism Season

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 stronger tourism season are rising.

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

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

Background on Short-Term Rental Restrictions

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

Many in the hospitality industry blame these restrictions for two consecutive “soft” tourism seasons.

“For council to come forward and 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.”

City Council’s Upcoming Discussion

With the city meeting the vacancy requirement of at least three percent for two years, it is now looking to opt out of the provincial program.

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

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

Proposed Timeline for Exemption

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

If approved, the legislation would ease restrictions, but it would not take effect until the fall.

Staff recommends that council votes in favor of asking the province for an earlier exemption.

The report suggests implementing it in May, ahead of the tourism season.

City’s Response and Major Events

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

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

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

Support from the Kelowna Chamber of Commerce

The Kelowna Chamber of Commerce supports the exemption.

The organization has received feedback from its members, linking the decline in business to the restrictions.

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

Greenwood hopes the province considers the urgency as many visitors are already looking for accommodations.

“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.”

Ministry of Housing’s Position

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

However, the ministry reiterated its position, 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.”