Real Estate for Sale in Kelowna BC: New STR Exemptions

New short-term rental (STR) legislation that was proposed in 2023, is finally about to take effect come May 1. The proposed changes were intended to provide stricter enforcement tools for local governments, new requirements for STRs, and new regulatory authorities to oversee operations. However, following pushback from numerous British Columbia residents, the government has made amendments to its rules. If you are the owner/operator of an STR, it’s important to stay in the loop about the changing legislation. To help you get a better grasp on how new exemptions will affect your property, we have compiled a comprehensive article.

Follow along below to learn more!

What Was Originally Proposed by the BC Government?

At the end of October 2023, the British Columbia government passed legislation that would ultimately change the STR market. This occurred following subsequent concerns about a lack of affordable and long-term housing options in the province. The changes to be put into effect included tools for local governments to enforce STR best practices, requirements designed to transition STRs to long-term accommodations, new provincial regulations, authorities to oversee compliance and registration, as well as information sharing and coordination agreements.

All of these changes have been approved and will be coming into effect in a phased manner. The first of these changes is still planned to come into effect on May 1, 2024. When the first of May arrives, STR owners will only be allowed to operate out of the host’s principal residence. Moreover, the removal of legal non-conforming use protections will disable legacy STRs from operating despite new local/provincial laws. Another new rule to be phased in will be requiring a business license to be displayed on listings for STR platforms. For example, VRBO and AirBnB.

During the summer of 2024 and beyond, STR operators can expect a few more changes to come into effect. Namely, data sharing between the government and STR platforms, in addition to, a provincial registry of all STR hosts and platforms. Besides the above, items like increased fines and the ability to grant business regulation and licensing powers have already been given to regional districts.

Formerly, the short-term rental act would not apply to reserve lands, Nisga’a Lands or the Treaty Lands of a Treaty First Nation, hotels, motels, a vehicle, or temporary shelters. However, new exemptions announced late in March could be added to this list.

How Will Real Estate for Sale in Kelowna BC be Affected by New Exemptions?

Following a news release at the end of March, the B.C. government has said that it will clarify certain rules around short-term rentals to make some strata hotels and motels exempt. A strata hotel or motel is a facility that consists of individually owned strata units that provide accommodation in a similar manner to a hotel or motel. Existing strata hotels and motels will not face new STR requirements if accommodation is provided like a hotel or motel before December 8, 2023. Additionally, the strata hotel or motel will need to have had and continue to have a staffed front desk, housekeeping services, and a platform offering services available only for the use of owners who are renting out units at the property.

For property owners in Kelowna, the new STR act can impact homeowner properties in a number of ways. The first is property values. Properties that are exempt from the legislation could see a great increase in property value as STR legal properties will soon be hard to come by. This is especially true for those with properties that can operate without any restrictions.

Another possible outcome of the new legislation is heightened rental market demand. Since the B.C. government is aiming to help create more long-term rental options, properties that become long-term rentals could see increased demand from locals. This could result in higher rental prices.

Furthermore, with the new strata hotel and motel exemptions, these units will likely become in high demand from real estate investors. However, careful consideration of the existing STR Act will remain necessary.

Contact us Today!

If you’re curious about how STR regulations will affect you and your property, don’t hesitate to reach out! We would love to provide you with some options for exempt properties in Kelowna. For more information about buying/selling real estate for sale in Kelowna BC, contact us today! We’d be happy to help you find an amazing home or investment that accommodates you and your family’s needs! Be sure to check out our social media for the latest updates and more. And, stay tuned to our blog for more real estate-related information. We look forward to working with you soon!