Kelowna residents anxious for more clarity in wake of new short-term rental rules

Brian Pedersen of Kelowna owns several short-term rental properties within city limits.

“I bought these short-term rental units as a business plan and as a retirement plan,” Pedersen told Global News.

Those plans are now in limbo following sweeping changes announced Monday by the provincial government, which will no longer allow short-term rentals other than in the operator’s principal residence.

“I was shocked by it,” Pedersen said.

1:58 Impact of short-term rental restrictions on tourism

The Kelowna man, who is also a realtor, said all of the units he owns are in buildings that allow short-term rentals.

“I only bought them in buildings that were properly zoned,” Pedersen said. “For instance, Sunset Drive. RM6 zoning allows short-term rentals as a secondary use.”

While Pedersen understands what the government is trying to accomplish, by wanting to put vacation units back into the long-term rental market, he said the legislation goes too far by targeting buildings that have for years allowed short-term rentals.

“We’ve been operating in these buildings for 15 to 20 years. We’ve invested in these buildings for 15 or 20 years we’ve operated there. There’s never been an issue, and it just kind of seems now, with the stroke of a pen, our businesses go down the tubes,” Pedersen said.

“No compensation. It’s devastating all the way around.”

2:34 New rules going into effect for short term rentals to help combat housing crisis

Pedersen said he would support regulation in buildings not zoned for short-term rentals, or a crackdown in single-family residential areas, but opposes it in buildings that have been zoned for it.

“I think that’s an overreach,” Pedersen said. “I think that those buildings, at the very least, need to continue to be grandfathered and exempted.”

Whether that’s something the government plans to do isn’t clear — and even the City of Kelowna doesn’t have an answer at this point.

“There are a few different types of licensing situations that we recognize are out there, where zoning is in place today or there is grandfathering,” said =Ryan Smith, divisional director for planning and development with the City of Kelowna.

“So we are going to be working and asking the province to help us clarify those types of situations.

“When we have that clarification, we will be reporting back to city council and the community to make sure that people are aware of the right thing to do in this case.”

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While some may already be considering their next move, Smith said it may be too early for that, given the clarification still needed.

“One of the things I would discourage right now is real estate investment decisions in Kelowna, or really anywhere in B.C. for that matter, that are based on business plans where short-term rental is the principal income,” Smith said.

For many residents who own or are long-term tenants in buildings, the legislation is being welcomed.

“With short-term rentals, it’s very disruptive,” said Teresa Seidel, who lives in a downtown Kelowna high-rise.

Karlene Sewell, who owns a unit in the Waterscapes development, agreed.

“It kind of becomes a hotel in the summertime,” Sewell said.

0:48 Deputy PM on B.C.’s short term rental legislation

Sewell is also pleased that the new rules could make finding a place to live easier.

“I think that’s great, and not even just about me and my experience in the building. I have two young adult children and they can’t find a place to rent in Kelowna,” Sewell said.

The new short term rental rules are set to take effect on May 1.