Operating a Short-Term Rental

What is a Short-Term Rental?

Operating a Short-Term Rental (STR), or vacation rental, is a licensed accommodation up to a maximum one-month stay which may include a room, legal suite, carriage house or the entire home. 

The City introduced regulations in 2010 to ensure STRs operate in a way to minimize disruption to neighbours and the surrounding community. City bylaws require STRs have a business licence, adhere to zoning requirements, and meet specific health and safety standards.

The City has recently modernized its short term rental program to reflect the significant change in the vacation rental industry and an increase in complaints towards some rental operations. Bylaw and business licensing changes now provide a broader scope of use and licence types with associated fees and stronger regulation to limit the impact on neighbouring properties, the community, and the tourism industry. 



Vacation Rental Guide



The Vacation Rental Guide is for people considering operating a short-term rental.  The guide outlines:

  • business licensing process & guidelines
  • short-term rental eligibility & zoning
  • applicable regulations & bylaws
  • overview of standard safety & health requirements
  • overview of building code requirements


Collecting and Remitting PST and MRDT (October 2018)

The provincial government introduced new tax regulations on October 1, 2018 requiring short-term vacation rental businesses to collect and remit PST and the Municipal and Regional District Tax (MRDT) for guest stays. For more information, please visit: Bulletin PST or the Government of British Columbia website.   Some online platforms, such as Airbnb, may do this on your behalf, Please direct any questions directly to the Province using the contact information found in the link above.  The City of Penticton is not involved with this new taxation requirement and cannot answer questions.


Bylaw Enforcement

Bylaw Enforcement Officers will be actively enforcing the vacation rental regulations. Property owners who operate vacation rentals without having a business licence or are operating against the regulations will be subject to bylaw enforcement and liable for daily fines for an ongoing offence.  This includes the rental of units to more than the maximum number of occupants or for the disturbance of neighbouring residents.


Current Licensed Short-Term Rentals 

To see a list of licensed vacation rentals currently operating in the city, please search "vacation rental" in the City's online business license database click here