Updated April 17, 2026

Summary

• As of 2027, municipalities with consistently high vacancy rates will have an earlier effective date to opt out of provincial rules that limit short-term rentals to principal residences
• This change shifts the decision timeline from a March 31 submission and Nov. 1 effective date to a Feb. 28 submission and June 1 effective date for communities who are requesting to opt out, which accommodates the busy summer season
• By request, a special one-time regulation will enable the City of Kelowna to follow the same timeline in 2026 and opt out of the provincial principal residence requirement effective June 1, recognizing major summer events planned in the community in 2026

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Eligible municipalities with sustained healthy rental vacancy levels will have an earlier effective date to opt out of provincial rules that restrict short-term rentals to principal residences, helping to meet summer tourism demand in locations where it makes sense for the community.

“Our short-term rental rules are focused on returning homes to the long-term market for people and giving communities with healthy rental markets the flexibility to provide additional tourist accommodation,” said Christine Boyle, Minister of Housing and Municipal Affairs. “Accelerating these timelines will assist communities like Kelowna that have brought vacancy rates to healthy levels through their hard work on housing to make the most of the summer tourism season. We welcome the considerate approach Kelowna is taking to remove the principal residence requirement from some buildings in the downtown core, while maintaining the requirement in most residential areas, ensuring sufficient homes are available for local residents.”

Existing provincial rules allow municipalities that maintain a healthy vacancy rate of at least 3% for two consecutive years to opt out of the principal residence requirement for short-term rentals. Canada Mortgage and Housing Corporation (CMHC) now releases rental vacancy rates in December of each year, allowing the timeline for municipalities to opt out to shift from the previous March 31 submission and Nov. 1 effective date to a Feb. 28 submission and June 1 effective date. The change supports local governments that have sufficient vacancy rates and want to use that housing to meet tourism demands during busier summer months.  

“Short-term rentals are an important part of the tourism sector in many parts of B.C.,” said Anne Kang, Minister of Tourism, Arts, Culture and Sport. “These changes support communities to make decisions that best meet their housing needs for residents, including those who work in the tourism sector, while also supporting the visitor economy. This is key to sustainable tourism growth that supports local businesses and contributes to a thriving provincial economy.”  

Kelowna requested exemption

The City of Kelowna was the lone local government that requested to opt out of the principal residence requirement this year and also requested that the effective date be accelerated in recognition of summer tourism demand. To accommodate this request, a special one-time regulation will bring Kelowna’s opt-out status into effect June 1, 2026, in line with the new timeline that will be available to all eligible municipalities beginning in 2027.

“Kelowna has been a leader in speeding up approvals and delivering housing, and we are seeing that progress reflected in our vacancy rate,” said Tom Dyas, mayor of Kelowna. “That leadership has allowed us to work collaboratively with the Province on a solution that reflects our community’s needs. With a number of major events ahead this summer, Kelowna is ready to welcome visitors and support our local economy, while maintaining a balanced approach that respects our neighbourhoods and protects housing supply.” 

Starting June 1, 2026, short-term rental hosts in the Kelowna no longer need to follow the principal residence requirement when they apply for provincial short-term rental registration subject to local restrictions. However, the city intends to limit where primary use short-term rentals can operate, to buildings in tourism-zoned areas. To ensure compliance with Kelowna bylaws, hosts will still need to upload a local business licence at the time of application.

Opt-in timelines also expanded

As of 2027, the date for requests from municipalities to opt in to the principal residence requirements will also shift from March 31 to Feb. 28. The effective date of Nov. 1 will remain in place to give homeowners sufficient time to make arrangements for their properties.

Balancing homes for residents with accommodations for visitors

• The Short-Term Rental Accommodations Act was introduced in fall 2023 and has been fully implemented since June 2025.
• The act’s principal residence requirement is in effect in more than 60 communities with populations over 10,000.
• Each year, exempt communities may request to have the principal residence requirement apply, while included communities with a healthy vacancy rate of 3% for two consecutive years may request to have it not apply.

Action on short-term rentals is part of the provincial government’s Homes for People action plan. The plan also includes a historic $19-billion investment in housing. Since 2017, the Province has more than 95,000 homes delivered or underway throughout B.C.

Since the legislation was introduced to restrict short-term rentals, asking rents for long-term rentals are down 14.3% throughout B.C., and saw a 5.7% decrease in Kelowna last year alone, according to Rentals.ca. In addition, annual CMHC data shows provincewide vacancy rates in communities with populations of 10,000 or more have risen, on average, from 1.2% when the legislation was introduced in 2023 to 3.5% in 2025. 

Learn More:

• Find out more about B.C.’s short-term rentals: https://www2.gov.bc.ca/gov/content/housing-tenancy/short-term-rentals/
• Find out more about the Homes for People Plan: https://www2.gov.bc.ca/gov/content/housing-tenancy/more-homes-for-people