Kelowna city council unanimously voted to ask the province to opt out of the Short Term Rental Accommodation Act, citing economic strain and high vacancy rates
Financial Burden for James Milacic Due to Short-Term Rental Restrictions
James Milacic’s investment property has turned into a financial burden. “I’ve already lost tens of thousands of dollars,” Milacic told Global News. “I’m going to continue to bleed.”
Milacic owns a unit in the Playa Del Sol building in Kelowna, B.C. This building was built and zoned for short-term rentals. However, due to restrictions on short-term rentals (STR) mandated by the province, Milacic has not been able to rent it to tourists since May 2024.
“I tried selling it last year. I couldn’t even sell it and then I dropped it in price, my monthly rent. I dropped that price by $1,000. I couldn’t rent it,” he said. Kelowna has many empty condo and rental units. The city’s vacancy rate is now the highest in Canada at more than six percent.
This situation is one reason why the city wants to loosen the restrictions on short-term rentals. On Monday, the city council voted unanimously to ask the province to opt out of the Short Term Rental Accommodation Act. They want this approval granted sooner rather than later.
| Event | Date | Details |
|---|---|---|
| Restrictions on STR | May 2024 | Milacic unable to rent to tourists |
| City Council Vote | Monday | Unanimous vote to ask province for opt-out |
| Approval Deadline | March 31, 2026 | Local governments must request opt-out |
| Effective Date | November 1, 2026 | Changes take effect if approved |
Legislation states that approval should be granted by the end of March, with the exemption starting on November 1. “It makes zero sense for it to be Nov. 1. It sounds like a very, very simple thing that they could do to just change that date,” said restaurant owner Casey Greabeiel.
Many in the hospitality industry have spoken out against the restrictions. They believe the rules have harmed the local economy. Greabeiel closed one of his three restaurants last year, citing the restrictions as a contributing factor. “It would be impossible not to attribute it in some sense. Our summer volume has gone down to downtown restaurant,” Greabeiel said.
The minister responsible was unavailable for comment on Monday. A spokesperson for the ministry of housing and municipal affairs stated, “The Ministry is aware that this was scheduled as a topic of discussion at the City of Kelowna’s council meeting on Jan. 12, 2026.”
The email also noted, “Local governments looking to opt out must request this by March 31, 2026. Once approved later that spring by Cabinet, any changes take effect on November 1 of that same year.”
“Everybody needs a win in the small business community, everybody,” said Greabeiel. He hopes the province will seriously consider what city officials are asking for. “It really shows how the province values the opinion of our city and our elected officials locally,” Greabeiel said.
Milacic shared similar feelings and urged the province to act. “For the government not to allow this to happen before summer, to wait till November, there’s no explanation,” Milacic said. “You’re messing with people’s livelihoods. That’s wrong.”
