Kelowna's 2026 New Airbnb Rules: What Rental Buyers Need to Know

By Nick Hazzi

Nick has been in the real estate industry for over 15 years and has a wealth of knowledge and experience. He is passionate about his clients and dedicated to ensuring they get the most out of real estate, providing value far beyond any sale.

If you’ve been thinking about buying a rental property here in the Okanagan, the rules changed this June in a way that matters, and a lot of people still haven’t caught up. So the real question isn’t just whether a rental is worth it. It’s which kind of rental is worth it for you.

Two years of frozen short-term rentals. Back in May 2024, the province brought in a rule that said you could only Airbnb the home you actually lived in. In Kelowna, that basically froze short-term rentals for two years and wiped out most of the investor market overnight. A lot of people wrote off the idea entirely.

Kelowna opted out this June. Then, on June 1, 2026, Kelowna became the first city in B.C. to opt out of that principal-residence rule. Full-investment short-term rentals are back on the table here, and right now no other city in the province can say that. But there’s a catch, and it’s the whole reason you want to talk to someone before you buy.

The short-term door is narrower. A short-term rental can bring in high income in a tourist town like ours, and the opt-out reopened that door. It’s just narrower than the headlines make it sound. The exemption only applies to properties in an approved short-term rental subzone, meaning tourism-zoned buildings on a city-approved list. A regular condo in a standard residential neighbourhood still can’t be a full-time Airbnb.

Even in the right building, every host needs a city business licence and provincial registration, and the strata has to allow it. So a short-term rental can absolutely be worth it here, but only if you buy the right property in the right zone with your eyes open. Buy the wrong one expecting Airbnb income, and you’ve made an expensive mistake.

Why long-term is the safer play. A long-term rental won’t spike the way a good short-term one can, but it’s steadier, it’s simpler, and it isn’t exposed to the next rule change. You’re not managing turnovers or chasing tourist season. You have a tenant and predictable monthly income.

Just keep in mind that Kelowna qualified for this opt-out because its rental vacancy rate climbed, so tenants have more choice than they did a few years ago, and your property still has to be one people want to live in. For many buyers, especially those who don’t want a second job, this is the path that fits their life.

So is an Okanagan rental worth it? It genuinely can be, but the answer depends on the property, the zoning, and the kind of landlord you want to be. The best rental isn’t the one with the flashiest projected return. It’s the one that matches how involved you actually want to be. Before you buy anything with rental income in mind, let’s sit down and run the real numbers on your situation, so you end up with a property that actually does what you’re hoping it’ll do. Call or text250-878-6416, email nick@vantagewestrealty.com, or visitvantagewestrealty.com. I’d love to help you get it right.