B.C. government announces ability to opt out of Airbnb restrictions in 2027
The Government of British Columbia has announced that it will offer some cities the ability to opt out of Airbnb short-term rental regulations in 2027, but one city will get the option this year.
According to the B.C. Ministry of Housing and Municipal Affairs, the opt-out will be offered to Kelowna because it requested an exemption.
The ministry says, “As of 2027, municipalities with consistently high vacancy rates will have an earlier effective date to opt out of provincial rules that limit the short-term rental of principal residences.”
According to the ministry, the change shifts a decision timeline from a March 31 submission and Nov. 1 effective date to a Feb. 28 submission and a June 1 effective date for communities who are requesting to opt out, allowing them to accommodate a busy summer season next year.
“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,” the ministry added.
B.C. Minister of Housing Christine Boyle shared some more information about the opt-out option and why Kelowna is getting a head start.
“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,” Boyle said.
“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.”
The existing rules will allow cities that maintain a healthy vacancy rate of at least three per cent for two consecutive years to opt out of the principal residence requirement. The Canada Mortgage and Housing Corporation releases its rental vacancy rates in December of each year.
“The change supports local governments that have sufficient vacancy rates and want to use that housing to meet tourism demands during busier summer months,” the ministry says.
Kelowna is the only city that requested an exemption. As of June 1, short-term rental hosts in Kelowna won’t need to follow the principal residence requirement when applying for short-term rental registration.
“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.”
So this doesn’t really change anything for short-term rentals and Airbnb in and around Metro Vancouver ahead of the FIFA World Cup, but could be good news for future busy summer tourist seasons.