West Kelowna council has agreed to start rewriting its zoning rules to allow short-term rentals (STRs) in secondary suites in compact, small-lot neighbourhoods (RC3-zone).
These areas were left off the list when council updated its STR bylaws in 2024.
Urban Systems was hired to assess the potential impacts of expanding the city’s STR program. Its report suggests the change would add about 30 new STR licences without significantly reducing the supply of long-term rentals, provided operators still live on the property.
Currently, West Kelowna has 216 licensed STRs, which must be operated by principal residents and are restricted to stays under 90 days.
The report did note that some smaller lots could face parking challenges. Urban Systems made several recommendations including tighter enforcement of driveway size limits, adjustments to street parking regulations, and new landscaping standards to avoid paving over front yards.
The city may also offer incentives—such as reduced permit fees—for homeowners looking to add secondary suites, in an effort to balance the expansion of STRs with support for long-term housing.
This builds on the city’s 2024 bylaw updates, which aligned its STR rules with provincial legislation. Those changes confirmed that STRs must be operated from a principal residence and excluded vacation-style properties or those in commercial zones.
Council has instructed staff to draft the necessary bylaw amendments.