Policy Context

The City’s STR regulatory framework was developed in 2010 with the program goal to “allow property owners to rent safe and healthy dwellings to the vacationing public while limiting nuisances to the surrounding neighbours.”3 The current framework is described by the City as “STR friendly” and can be considered strongly permissive.

In recent years, questions have been raised about whether and to what extent STRs are harming housing availability and affordability, and other accommodation providers, and how these and other concerns should be weighed alongside the benefits that STRs can bring, for example their ability to add a greater number and more diversity of accommodation options.

Overarching policy context

Penticton’s Official Community Plan (OCP), 2019 recognizes that tourism and events are a significant contributor to the City’s economic wellbeing. Penticton is a tourist destination with related tourist commercial services concentrated in the downtown (Main and Front Streets), waterfront and high-amenity areas such as the Northern Gateway and Skaha Lake Road.

The OCP expresses a goal to ‘increase the availability of housing across the housing spectrum’ (4.12) and recognizes that tourist accommodations in residential neighbourhoods should be monitored. Section 4.1.2.10 of the OCP states that City will ‘monitor vacation rentals to ensure they do not have a negative impact on the long-term rental stock or negative social impacts on existing neighbours and/or neighbourhoods. Refine vacation rental policy and regulations if necessary’.

The City’s vacation rental regulations and management program consists of several related bylaws including: Zoning Bylaw, Business Licence Bylaw, Fees and Charges Bylaw, Municipal Ticket Information and Bylaw Notice Enforcement.

Current regulatory program

The City of Penticton refers to vacation rentals and short-term rentals interchangeably. The City defines vacation rental in the Zoning Bylaw as ‘the rental of a dwelling unit to the vacationing public for a period of one (1) month or less. Rentals of a dwelling unit for less than 14 days in a calendar year are not considered vacation rentals’.

In the Zoning Bylaw, 2021-01, vacation rentals are permitted in all residential, agricultural zones and all commercial zones that permit dwelling units.

There is a limit of one STR per property (except in the case of multi-family properties), and a limit of no more than 2 guests per bedroom.

Otherwise, there is no limit on the number of STRs in the community. Any homeowner or resident who wishes to operate an STR can do so, so long as it is in a legal dwelling and meets basic health and safety conditions.

STRs are categorized according to their intensity of use (including number of nights per year and number of guests), with business licence fees increasing with the intensity of use.