British Columbia is moving up the date that communities with high vacancy rates can opt out of limits on short-term rentals so they don’t miss out on the summer tourism season.
B.C.’s principal residence requirement limits short-term rentals only to units that are on the same property as the owner’s home. It applies to communities with a population over 10,000 and neighbouring areas, but local governments can request to opt in or opt out of the requirements. More than 60 B.C. communities currently have the principal residence requirement in place.
The province allows municipalities to opt out if they maintain a three per cent vacancy rate for at least two years in a row. Communities that want to opt out of the rules are required to submit their request by March 31 for the exemption to take effect on Nov. 1.
The province said Friday it will shift that timeline to allow communities to submit their requests by Feb. 28, for a June 1 effective date. The new timeline will take effect for most municipalities in 2027, though the province is making an exception for Kelowna this year.
“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,” said Housing and Municipal Affairs Minister Christine Boyle in a statement.
The province said Kelowna was the only local government to request to opt out this year, and the city also asked that the effective date be moved up ahead of the summer.
Kelowna Mayor Tom Dyas said it won’t be a blanket exemption for the entire city, but will apply to certain areas zoned for short-term rentals, an addition to suites that are attached to principal residences.
“We know that as we monitor this we’ve had growth with regards to our vacancy rate so we want to maintain that,” said Dyas. “So that’s why when we implement this we’re looking at implementing it in a slower process that we’re able to continue that strong balance.”
Next year, the province will also move up the date for municipalities to opt in to the principal residence requirements, from March 31 to Feb. 28. The Nov. 1 effective date for the restrictions would remain the same, giving homeowners more time to make arrangements for their properties.
B.C. said asking rents for long-term rentals have declined by more than 14 per cent since legislation to restrict short-term rentals was introduced in fall 2023.
Rentals.ca, which publishes a monthly report on Canadian rental prices, has said there are several factors contributing to declining rents across Canada. It cites recent population decreases, record-high apartment completions, an oversupply of condos in certain markets and overall economic uncertainty.
