Kelowna Airbnb business licence: complete guide for 2026
How to apply for a Kelowna business licence as an Airbnb or short-term rental host, what it costs, how long it takes, and how it interacts with the BC STR registry.
Quick answer
To run an Airbnb or short-term rental in Kelowna in 2026, you need a City of Kelowna business licence in addition to the provincial BC STR registry number. The licence costs roughly $250 for the first year and $150 to renew. Application takes 4-6 weeks. You must prove the property is your principal residence (or qualifies for an exemption) and provide proof of liability insurance.
What do I need to apply?
- Proof of property ownership (title document) or written permission from the owner if you're renting the unit you'll be hosting from.
- Proof the property is your principal residence (driver's licence with the address, recent utility bill, or BC Hydro bill).
- Proof of liability insurance covering short-term rental operations (typically $2M minimum).
- Site plan or floor plan showing the rental area, exits, and parking.
- Application form (online at kelowna.ca) and the licence fee.
How long does it take?
Standard processing is 4-6 weeks from submission to approval. The City of Kelowna runs your application through three checks: zoning compliance, building/fire code inspection, and bylaw compliance. The longest step is usually the in-person fire inspection - the inspector visits your property and checks alarms, extinguishers, exits, and posted evacuation plan. Book this inspection as soon as you submit the application; the schedule often runs 2-3 weeks out.
How much does it cost?
| Fee | Amount | When |
|---|---|---|
| Initial business licence application | $250 | At application |
| Annual renewal | $150 | Each subsequent year |
| Fire safety inspection | Included | At application + every renewal |
| Late renewal penalty | +$50 | If past expiry |
| BC STR Registry fee (provincial, separate) | $100 | Annually |
What's the principal residence rule?
Kelowna restricts short-term rentals to the host's principal residence in most zones. Principal residence means the home you live in for most of the year (180+ days). You can rent the entire home when you're away, or up to two bedrooms / one secondary suite while you're there.
Investment properties that are not the host's principal residence are generally not permitted for short-term rental in Kelowna. The Kelowna Zoning Bylaw lists narrow exemptions: properties in certain resort-zoned areas, hotels, and licensed B&Bs operating under separate frameworks. If your property doesn't fit one of those, short-term rental is not a legal option in Kelowna at this time.
What happens after I'm licensed?
Once approved, you'll receive a Kelowna business licence number. Display it on every listing (Airbnb, VRBO, Booking.com). Combined with your BC STR Registry number, this satisfies both layers of the public-display requirement.
You'll be subject to: annual licence renewal, periodic compliance inspections (random or complaint-driven), and reporting requirements for hospitality and tourism taxes. The City sends renewal reminders 60 days before expiry.
What if my application is denied?
Denial usually means one of three things: the zoning doesn't permit STR for your property, the principal-residence requirement isn't met, or a life-safety item failed inspection. Zoning and principal residence are structural - they require a different property or a change of operating model. Failed inspection items are fixable; reapply after the fix.
Common inspection failures: missing CO alarm in a bedroom with a gas fireplace, expired fire extinguisher, no posted evacuation plan, smoke alarms that aren't interconnected. Each is straightforward to fix; the licence inspector will tell you the specific failure and what's required.
Frequently asked
Do I need both a Kelowna business licence AND a BC STR Registry number?
Yes. They're separate requirements at different government levels. The provincial registry covers the right to operate STR in BC at all. The municipal licence covers the right to operate in Kelowna specifically. Listings must display both numbers.
Can I rent out a suite in my house if my main floor is owner-occupied?
In most cases yes, as long as the main floor is your principal residence and the suite is within the same structure. The exact rule is in the Kelowna Zoning Bylaw - certain zones permit one secondary suite STR per principal residence.
What if I'm renting from a landlord and want to Airbnb the space?
You need written permission from the property owner, plus the owner's consent on your application. Subletting via short-term rental without permission is a tenancy violation and a licence application would be denied.
Get compliant, stay compliant.
We handle the monthly maintenance and inspections required to keep your Kelowna licence in good standing.