If you are looking to buy investment properties in Canada, knowing the Airbnb rules in your preferred city is the first step. It’s also important to consider the occupancy rates in Canada in order to have successful investment & long-term profitability!
In this article, we featured Airbnb regulations in Kelowna along with short-term let policies, rental properties, things to consider in property investment, and more. Continue reading and learn more about the Airbnb rules in Kelowna.
Is Airbnb legal in Kelowna?
Don’t worry, Airbnb is legal in Kelowna! This city is known for its award-winning vineyards and wineries.
Here is a little proof! As of July 2022, there are 12,194 nights available in Kelowna from Airbnb alone. Kelowna Resort Accommodations manages 49 listings, while Locations and Cole operates 32 and 31 respectively.
How much can I make by running an Airbnb in Kelowna?
Currently, there are 617 Airbnb listings in Kelowna, with 48% of entire houses earning up to C$3,378 a month. The Average Occupancy Rate in Kelowna is 61% and the average daily rate is C$164. According to short-term rental properties data source Airbtics, a 2-bedroom apartment in Kelowna can make up to C$56,533 each year. Check out our Airbnb Income Calculator!
Short-term Rental Policy in Kelowna
- Anyone operating a short-term rental in Kelowna must apply for a business licence. A homeowner or primary resident can legally rent their principal residence (or a bedroom within their residence) for periods of less than 30 days in certain zones in the city.
- Annual business licences for short-term rentals cost $345 for principal residences and $750 for non-principal residences. These fees reflect the cost of implementation and compliance oversight activities. Short-term rental operators are required to renew their licence annually and ensure all documentation is accurate and up-to-date for the new year.
- The City actively inspects short-term rentals. Operators must provide access to their short-term rental accommodation for the City to inspect, upon request.
- Short-term rentals are NOT allowed in secondary suites or carriage houses.
- Your short-term rental application is required to include a parking plan that outlines and labels each parking stall to show that there is enough room to support a short-term rental, as well as any other uses, within your property lines.
Rental Demand in Kelowna
There are many hosts who are doing rental arbitrage in Canada as it does not require you to own a property. Despite the fact that the price rent in Kelowna has increased, its demand and rental rate are also growing! Based on a recent rental housing inventory in Kelowna, their new rental buildings are located near public transportation, employment, and amenities.
Source: Kelowna Rental Demand
Property Investment in Kelowna
If you are looking to start an Airbnb business in Canada, particularly in Kelowna, you have to consider which areas are the most profitable. Whether it is located in the city centre or in the countryside, knowing your estimated annual revenue and high-return investment opportunities is important. Using an accurate short-term rental calculator, it shouldn’t be a difficult task at all!
Rental Properties in Kelowna
Once you have decided to buy a property, you have to consider the average price, population, nearby landmarks or attractions, and rental yields to expect – among the rest. It could be a challenge to find rented properties in Kelowna, so here are some of the most recommended areas that you can look into & consider purchasing:
| Area | Average House Price | Average Rent Price (pcm) | Average Airbnb Revenue |
|---|---|---|---|
| North End | C$1,414,071 | C$1,850 | C$3,568 |
| Lower Mission | C$893,000 | C$1,045 | C$2,588 |
| Downtown | C$699,958 | C$2,300 | C$4,060 |
Conclusion
In my personal opinion, the biggest advantage of running a short-term rental is high return! I’ve talked to hundreds of Airbnb hosts over the past years and frequently met hosts making 15-30% gross rental yields, and 10-20% net. It’s also fun to do!
