Vacation Rentals

 VACATION RENTALS - Click here for the application [PDF - 177 KB]




What are vacation rentals?

 Vacation rental means the rental of a dwelling unit to tourists or the vacationing public.
Prior to the operation of a vacation rental unit, business licence approval must be granted.

What is the cost of operating a vacation rental?

 Aside from any upgrade requirements that may be required to meet the BC Building Code, the cost to operate a vacation rental is as follows:

*The non-refundable Application Fee will be credited towards initial licence fees upon approval of licence 


Application Fee*

Annual Business Licence

Vacation Rental (Minor)



Vacation Rental (Major)



Vacation Rental (Major High Occupant)
(Requires Neighbourhood Notification)




What types of dwellings are eligible for vacation rental consideration?

Vacation rentals are permitted in any approved dwelling unit in the following zones:

Rural Zones

Urban Residential Zones

Commercial Zones

FG (Forestry and Grazing)

R1 (Large Lot Residential)

C1 (Commercial Transition)

A (Agriculture)

R2 (Small Lot Residential)

C2 (Neighbourhood Commercial)

RC (Country Residential)

R3 (Small Lot Residential: Lane)

C3 (Residential Mixed Use)


RSM (Mobile Home Park Housing)

C4 (General Commercial)


RD1 (Duplex Housing)

C5 (Urban Centre Commercial)


RD2 (Duplex Housing: Lane)

C6 (Mixed Use Commercial)


RM1 (Cluster Housing)

C9 (Marina Way Commercial)


RM2 (Low Density Multiple Housing)

CT3 (Hotel Resort)


RM3 (Medium Density Multiple Housing)

CD1 (400 Martin Street)


RM4 (High Density Multiple Family)


What are the zoning bylaw regulations that apply to vacation rentals:City of Penticton Zoning Bylaw 2011-23 lists a number of regulations in regard to vacation rentals. The regulations are as follows:



A residential dwelling unit being proposed for vacation rental shall

only be rented out by an owner of the property. A tenant may not

sublet a property for the purpose of vacation rentals.

If the registered owner ceases to be the owner, the use may not

be continued by a subsequent owner until the application for a new

business licence has been approved by the City.

Development Regulations

No structural alterations or additions to a dwelling unit to facilitate

a vacation rental shall be undertaken that alters the residential

character of the dwelling.

No exterior signage advertising the vacation rental is permitted

A site containing a single detached dwelling and an approved

secondary suite or carriage house can be used for the purpose

of vacation rentals, subject to the owner living on the subject





Operation of Vacation Rental

The owner shall ensure that the renters do not create any form

of nuisance for surrounding residents, such as, noise, light or

traffic that is disruptive to the surrounding residents' quite

enjoyment of their properties.

A maximum of two (2) persons per bedroom, or a group of not

more than six (6) persons is permitted per vacation rental unit,

whichever is less.


What building upgrades are required to receive vacation rental approval: It is the property owner's responsibility to ensure that the space that they are renting is built to BC Building Code regulations. When an application for a vacation rental is made, a waiver must be signed saying that the house, to the best of the owner's knowledge is in general conformance to the code. The Building Department may require an inspection of the space to confirm compliance. Common upgrade requirements include the installation of smoke and carbon monoxide detectors and in the case of secondary suites being rented out for vacation rental, proper fire separation between the suite and principal dwelling unit.

For more information on BC Building Code requirements, please contact the City of Penticton Building Department at (250)490-2501.

Is strata corporation approval required for vacation rental?

The City does not require approval from strata corporations for the operation of vacation rentals. The City does however recommend that owners of strata units who wish to operate vacation rentals to review the rules and regulations of their strata corporation to determine if vacation rentals are permitted. Many strata bylaws prohibit unit rentals; City regulations do not overrule strata bylaws.

Is insurance company notification required for the operation of a vacation rental?

 The City does not require evidence that a dwelling unit has proper insurance for the operation of a vacation rental unit. The City does, however, recommend that owners speak with their insurance providers and make necessary adjustments to their coverage prior to proceeding with the rental of their unit.

Speak with your neighbours

 The vacation rental program is relatively new in Penticton and its success depends on the effective integration of the visiting public with full time residents of the city – often in the same building. Owners of vacation rental units are responsible for the behavior of their tenants and the expectations of the renters should be clearly laid out prior to occupancy of the rental unit. Also, informing neighbouring residents that a vacation rental unit will be operating can often alleviate problems before they start.

Bylaw enforcement

 Please be advised that City of Penticton 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 fines of up to $10,000.00. This includes the rental of units to more than the maximum number of occupants or for the disturbance of neighbouring residents.

The City of Penticton Vacation Rental Guide 2017 - revised.pdf [PDF - 496 KB] will also provide you with useful information regarding Vacation Rentals.

For further inquiries please contact the Development Services Department at (250) 490-2501