Kelowna looks to address housing affordability as it examines banning some short-term rentals

Kelowna should follow Vancouver and Victoria in banning shortterm rentals of secondary suites and investment properties, city staff say.

A proposal introduced to council Monday would allow the shortterm rental only of spare rooms in an owner or renter’s principal residence, or the entire unit while the owner is away.

If ultimately passed by council, the restriction would likely greatly reduce the number of listings in Kelowna for services like Airbnb and other short-term rental companies. Last November, city staff say, there were 1,158 Kelowna properties advertised for shortterm rental of less than 30 days.

Eighty per cent of the listings were for entire homes or condominiums, rather than single rooms. The properties were being rented for an average nightly rate of $190.

The proliferation of short-term rental properties is said by city officials to reduce housing options for long-term renters and potentially undercut the viability of local ho- tels and bed and breakfasts.

“While short-term rental accommodations provide a different option for tourists and an opportunity for additional income for homeowners, they can also present concerns about housing availability and affordability, neighbourhood character and nuisances, and unfair competition to traditional accommodation providers,” reads part of a staff report to council.

Short-term rentals are currently prohibited in Kelowna residential zones, but the proliferation of listings show the restriction is widely ignored.

If the city were to allow shortterm rentals of all types of properties, municipal staff suggest, the result could be “increased rents, house prices and eviction rates, along with a decrease in vacancy rates.”

The issue of short-term rentals is a contentious one, with more than 2,600 Kelowna residents recently filling out a city-sponsored online survey on the topic.

Though not statistically significant, the survey found a range of attitudes, with 60 per cent favouring the short-term rental of secondary suites and carriage houses, but 20 per cent wanting the practice banned entirely.