Principal Residence Requirement (STRAA)

The Short-Term Rental Accommodations Act (STRAA) restricts short-term rental operation in designated communities to the host's principal residence — the property where the host ordinarily lives. In addition to the principal residence itself, a host may also offer one secondary suite or accessory dwelling unit on that same property as a short-term rental. Investor-owned properties in covered municipalities that are not the owner's principal residence are generally ineligible for short-term rental operation under this rule.

The STRAA principal residence requirement applies to designated communities prescribed under the Act, which initially targeted larger municipalities and resort municipalities across British Columbia. The list of covered communities is set by provincial regulation and has been subject to change, so the current designation status of any specific municipality should be confirmed directly with the BC Government or the relevant local government. Hosts and property owners should not assume coverage or exemption without verifying the latest regulatory schedule.

Effective June 1, 2026, the City of Kelowna is exercising a one-time opt-out from the STRAA principal residence requirement under a specific provincial regulation, meaning that property owners in Kelowna are no longer bound by the principal residence restriction from that date under this opt-out. This opt-out is specific to Kelowna and was enabled by a one-time regulation distinct from the general municipal opt-out framework that begins in 2027. Hosts in Kelowna should confirm current local licensing and zoning requirements with the City, as local business licence and zoning rules may still apply independently of the STRAA principal residence requirement.

Beginning in 2027, a municipality that has recorded a residential vacancy rate of 3% or higher for two consecutive years becomes eligible to opt out of the STRAA principal residence requirement. To exercise the opt-out, an eligible municipality must pass a council resolution and submit it to the province by February 28, with the opt-out taking effect June 1 of that same year. Because opt-out status is reassessed year-to-year based on updated vacancy data, a municipality's eligibility and opt-out status can change annually, and current status must be confirmed with the local government.

Even if a strata lot owner meets the STRAA principal residence requirement, short-term rental operation may still be restricted or prohibited by the strata corporation's bylaws under the Strata Property Act (SBC 1998, c. 43). Strata corporations have authority to pass bylaws regulating or banning short-term rentals, and those bylaws operate independently of provincial STRAA rules. Owners should review their strata's current registered bylaws and obtain a Form B Information Certificate for the most up-to-date bylaw information before assuming short-term rental eligibility.

Under the STRAA, a host who satisfies the principal residence requirement may also short-term rent one secondary suite or one accessory dwelling unit located on the same property as their principal residence, in addition to the principal residence itself. This means the allowance is limited to one additional unit — a host cannot operate multiple secondary suites or multiple accessory dwelling units as separate short-term rentals beyond this one-unit allowance. The definitions of 'secondary suite' and 'accessory dwelling unit' for STRAA purposes are set out in the Act and applicable regulations.

Investor-owned condominiums located in covered municipalities that are not the owner's principal residence are generally prohibited from being operated as short-term rentals under the STRAA principal residence requirement. This effectively removes a significant category of investment properties from the short-term rental market in designated communities unless a valid municipal opt-out is in effect. Investors should verify both the current STRAA designation of the relevant municipality and any applicable strata bylaw restrictions under the Strata Property Act (SBC 1998, c. 43) before relying on short-term rental income projections.

Licensed real estate professionals in BC are governed by the Real Estate Services Act (RESA) and regulated by the BC Financial Services Authority (BCFSA), which requires them to act honestly and in their client's best interest, including providing accurate material information about a property's short-term rental eligibility. When representing a buyer or seller, a licensee should disclose known STRAA restrictions affecting the property, but they are not qualified to provide legal advice on regulatory compliance — clients should be directed to qualified legal counsel for specific STRAA obligations. Licensees must ensure they do not misrepresent a property's short-term rental potential in any marketing or disclosure.

A buyer should contact the relevant local government directly to confirm the municipality's current STRAA opt-out status, since opt-out eligibility depends on annually updated vacancy rate data and a council resolution submitted by February 28 each year. Relying solely on opt-out status from a prior year is insufficient, as a municipality that opted out in one year may not qualify in the next. Buyers should also review any applicable strata bylaws under the Strata Property Act (SBC 1998, c. 43) and local business licence requirements, as these impose independent restrictions regardless of STRAA opt-out status.

The Short-Term Rental Accommodations Act provides for enforcement mechanisms including compliance orders and administrative monetary penalties for hosts who violate the principal residence requirement in covered municipalities. Platform operators (such as online short-term rental listing services) also have obligations under the STRAA, including requirements to remove non-compliant listings when directed by the province. For exact penalty amounts, enforcement procedures, and the complaint process, property owners and hosts should consult the current BC Government guidance and the text of the STRAA and its regulations.