Short-Term Rental Rules Update: What Tourism Partners Need to Know

The Province of British Columbia has introduced updates to the timeline for municipalities that choose to opt out of short-term rental rules. These changes aim to better align local decision-making with seasonal tourism demand, while maintaining a focus on housing availability for residents. 

What is changing 

Starting in 2027, eligible municipalities will have an earlier timeline to request an exemption from the provincial principal residence requirement. 

Key updates: 

• New request deadline: Feb. 28 (previously March 31)  

• New effective date: June 1 (previously Nov. 1)  

Municipalities must continue to meet eligibility criteria, including maintaining a rental vacancy rate of at least 3 percent for two consecutive years.  

These updates align with the annual release of rental vacancy data from the Canada Mortgage and Housing Corporation, which is now available each December.  

Why the timeline shift matters 

The earlier effective date allows eligible communities to better align short-term rental availability with peak travel periods. 

This may help communities: 

• Respond to increased summer visitation  

• Support local tourism businesses during high-demand periods  

• Make timely decisions based on updated housing data  

The changes reflect an effort to balance housing needs with the role short-term rentals play in supporting visitor accommodation.  

Kelowna: One-time early implementation in 2026 

A one-time regulation will allow the City of Kelowna to follow the new timeline a year early. 

• Effective date: June 1, 2026  

• Kelowna is the only municipality applying this change in 2026  

This approach recognizes Kelowna’s sustained vacancy rates and anticipated summer demand. 

Starting June 1, 2026, short-term rental hosts in Kelowna will no longer need to follow the provincial principal residence requirement when applying for registration, subject to local rules. The city has indicated it will continue to limit where these rentals can operate, including within tourism-zoned areas, and require a valid business licence.  

Opt-in timeline also changing 

As of 2027, municipalities that request to opt in to the principal residence requirement will also follow an updated timeline: 

• New request deadline: Feb. 28 (previously March 31)  

• Effective date remains: Nov. 1  

This maintains a longer transition period for property owners and operators.  

Context: Provincial framework 

The Short-Term Rental Accommodations Act: 

• Was introduced in fall 2023  

• Has been fully implemented since June 2025  

• Applies the principal residence requirement in more than 60 communities with populations over 10,000  

Communities can request changes each year: 

• Communities with strong vacancy rates may request to opt out  

• Exempt communities may request to opt in  

What this means for tourism partners 

Short-term rentals continue to play a role in accommodation supply across many BC communities, particularly during peak travel periods. 

For tourism businesses and organizations, these updates may: 

• Influence local accommodation availability during summer  

• Affect how destinations manage demand  

• Require ongoing attention to local bylaws and zoning rules  

Partners are encouraged to stay informed through their local governments and ensure operations and communications align with current regulations. 

Municipalities will continue to assess local housing conditions and determine whether to opt in or opt out of the principal residence requirement based on their own criteria and processes. 

Learn more: 

• Read the BC Government news release 

• Find out more about short-term rentals and regulations in BC