Is Short-Term Rental Restricted in Kamloops? Local Enforcement Update

Yes, short-term rentals are strictly regulated in Kamloops. Under BC’s Short-Term Rental Accommodations Act (Bill 35, 2023) and the City of Kamloops Short-Term Rental Business License Bylaw, all rentals under 30 days must be operated from a principal residence and be covered by a valid Kamloops Short-Term Rental Business License. Daily fines for non‑compliance start at CAD 1,000 for individuals and can reach CAD 10,000 for corporations. As of 2025, the city is actively enforcing these rules through compliance audits, public complaints, and coordinated inspections with BC Housing.

1. Real Costs of Short‑Term Rental in Kamloops

Operating a legal short‑term rental in Kamloops involves several mandatory and optional costs. Below is a detailed breakdown based on the City of Kamloops Business License Fee Schedule (2024) and BC assessment data.

Total estimated first‑year cost: CAD 6,800 – CAD 12,500 (excluding property mortgage/rent).

Source: City of Kamloops – Business Licence Fees; BC Provincial Sales Tax.

2. Best Areas for Short‑Term Rental Investment

Kamloops offers several distinct neighbourhoods that attract both tourists and business travellers. Based on 2024 occupancy data, seasonal demand, and proximity to key amenities, the following areas are considered the strongest for legal STR investment.

Recommendation: Downtown and Sahali offer the best balance of high occupancy and nightly rates. The TRU district is ideal for academic‑year leases and summer conference traffic.

Source: AirDNA – Kamloops Market Report 2024; Tourism Kamloops.

3. Step‑by‑Step Licensing Process

Obtaining a legal short‑term rental license in Kamloops requires completing the following steps. The process is administered by the City of Kamloops Business License Office under Bylaw No. 5‑1‑2023.

1. Confirm Principal Residence Status – Ensure the property is your primary residence (lived in at least 6 months per year). Provide proof (BC ID, utility bills, tax return).
2. Prepare Required Documents
   • Property title or lease agreement (with landlord consent if renting)
   • Floor plan showing the rental unit
   • Proof of residence (BC driver’s license + utility bill)
   • Valid insurance certificate (commercial STR liability coverage)
   • Fire safety inspection report (if multi‑unit building)
3. Submit Application – Apply online via the City’s e‑Services portal or in‑person at the Business License Office (7 Victoria St West). Fee: CAD 250.
4. City Review & Inspection – The City may conduct a property inspection to confirm compliance with zoning, fire, and building codes. Average review time: 10–15 business days.
5. Receive License – Once approved, you receive a Short‑Term Rental Business License (valid for one year). Display the license number on all listings.
6. Register for Taxes – Register with the BC Ministry of Finance for PST (8%) and the Municipal and Regional District Tax (MRDT, 3%).
7. Annual Renewal – Renew before expiry. Late renewals incur a 25% penalty fee.

Source: City of Kamloops – Short‑Term Rentals Official Page.

4. Local Authorities & Office Addresses

Several local and provincial bodies are involved in regulating, licensing, and enforcing short‑term rental rules in Kamloops. Below are the key offices and their roles.

Office Hours: City of Kamloops Business License Office – Monday to Friday, 8:30 AM – 4:30 PM (excluding statutory holidays). Appointments recommended.

Source: City of Kamloops – Contact & Office Locations.

5. Safety & Compliance Risks

Operating a short‑term rental in Kamloops carries several legal, financial, and operational risks if not fully compliant. Below is a risk matrix based on enforcement data from 2023–2024.

Key Mitigation Strategies:

• Obtain and display your STR license on all listings.
• Carry commercial STR insurance minimum CAD 2 million liability.
• Remit PST and MRDT monthly – set aside 12% of revenue.
• Conduct annual fire safety self‑inspections using the City’s checklist.

Source: City of Kamloops – STR Compliance Reports 2024; BC Laws – Bill 35.

6. Time Efficiency & Waiting Times

Understanding processing timelines is critical for planning your STR launch. Below are the average wait times for each stage of the licensing and compliance process, based on 2024 City data.

Peak Season Delays: Applications submitted between May and August (peak tourist season) take 25–40% longer. The City processed 312 STR applications in 2024, with an average turnaround of 14.2 business days.

Source: City of Kamloops – Business License Processing Times.

7. Vacancy Rate in Kamloops

The vacancy rate is a critical indicator of housing market tightness and directly influences STR regulation. Kamloops has consistently recorded one of the lowest vacancy rates in BC outside the Lower Mainland.

Implications for STR: A vacancy rate below 2% indicates a severe housing shortage. The BC government and City of Kamloops have explicitly cited low vacancy as a primary justification for the STR principal‑residence requirement and licensing cap. In 2024, an estimated 280–350 properties were used as full‑time STRs in Kamloops, representing approximately 1.7% of the city’s total rental stock.

Source: Canada Mortgage and Housing Corporation – Rental Market Report 2024; City of Kamloops – Housing Data.

8. Hospitals Near Rental Areas

Proximity to healthcare facilities is a key consideration for many STR guests, particularly medical travellers, families, and extended‑stay visitors. Kamloops is served by one major hospital and several clinics.

Popular STR areas near RIH: Sahali (Columbia Street West, Hillside Drive) and Downtown (Columbia Street East) are within a 5–10 minute walk or short drive to Royal Inland Hospital. Properties in these areas command a 15–20% premium for medical travellers.

Source: Interior Health – Royal Inland Hospital; Tourism Kamloops – Visitor Data 2024.

9. Main Roads & Accessibility

Kamloops is a transportation hub in BC’s Southern Interior. Understanding the city’s road network helps STR operators position their properties for maximum guest convenience.

Primary Arterial Roads

• Trans‑Canada Highway (Highway 1) – Runs east–west through the city, connecting to Vancouver (4 hours) and Calgary (6 hours). Direct access to Downtown, Aberdeen, and Valleyview.
• Columbia Street – Main commercial corridor through Downtown and Sahali. Parallel to the Thompson River.
• Victoria Street – North–south link between Downtown and the North Shore (Tranquille area).
• Lansdowne Street – Connects the City Centre to the TRU district and McGill Road.
• Summit Drive – Major north–south route linking Sahali and Aberdeen to the upper benchlands.
• Hillside Drive – Serves the Sahali neighbourhood and provides direct access to Royal Inland Hospital.

Accessibility Features

• Kamloops Airport (YKA) – 15 minutes from Downtown via Highway 1. Daily flights to Vancouver, Calgary, and Edmonton.
• BC Transit – Public bus system covers most STR areas. The 1, 2, 3, and 7 routes connect Downtown, Sahali, TRU, and Aberdeen.
• Parking – Most STR properties in Downtown and Sahali include off‑street parking. City permits required for on‑street parking in designated zones.

Source: City of Kamloops – Transportation & Roads; BC Transit Kamloops.

10. Penalties & Fines

Kamloops and the BC government have established a graduated penalty system for short‑term rental violations. Fines escalate with severity and frequency of non‑compliance.

Enforcement Statistics (2024): The City of Kamloops Bylaw Services issued 87 violation notices and collected CAD 214,000 in fines. Of these, 12 cases were referred to the BC Attorney General for court enforcement.

Source: BC Laws – Short‑Term Rental Accommodations Act, S.B.C. 2023, c. 35; City of Kamloops – Bylaw Services.

11. Real Cases & Enforcement Examples

Actual enforcement actions provide the clearest picture of how Kamloops regulates short‑term rentals. Below are three documented cases from 2023–2024.

Case 1: Downtown Condo – Unlicensed Operation (2023)

Property: 1‑bedroom condo on Victoria Street, Downtown Kamloops.
Violation: Operated as an STR for 14 months without a business license. Listed on Airbnb and Vrbo.
Enforcement: City Bylaw Services issued a Stop Work Order and fined the owner CAD 2,500 for 5 days of unlicensed operation (CAD 500/day under previous bylaw). The owner later obtained a license and paid CAD 1,200 in back taxes.
Outcome: Property now operates legally. Owner reported a 30% drop in bookings after compliance but avoided further penalties.

Case 2: Sahali Basement Suite – Non‑Principal Residence (2024)

Property: Basement suite on Hillside Drive, Sahali.
Violation: The owner lived in Vancouver and used the suite as a full‑time STR, violating the principal‑residence requirement.
Enforcement: Following a neighbor complaint, BC Housing and City inspectors conducted a joint visit. The owner was fined CAD 9,000 (3 days at CAD 3,000/day) under Bill 35. The license was revoked.
Outcome: The property was converted to a long‑term rental. The owner paid CAD 9,000 fine plus CAD 2,100 in legal costs.

Case 3: Aberdeen House – Repeat Offender (2024)

Property: 3‑bedroom house on Aberdeen Drive.
Violation: Second offence within 12 months – operating without a license after previous warning.
Enforcement: City imposed doubled fines: CAD 6,000 for 2 days (CAD 3,000/day × 2). Court order required the owner to cease STR operations for 6 months.
Outcome: Property sat vacant for 6 months. Owner sold the property in early 2025.

Source: City of Kamloops – Bylaw Enforcement Records (2024); BC Attorney General – Court Enforcement Cases.

Frequently Asked Questions

Official Resources

• City of Kamloops – Short‑Term Rentals Official Page
• City of Kamloops – Business Licence Information
• City of Kamloops – Bylaw Services & Enforcement
• BC Laws – Short‑Term Rental Accommodations Act (Bill 35)
• BC Ministry of Finance – PST & MRDT Information
• Canada Mortgage and Housing Corporation – Rental Market Data
• Tourism Kamloops – Visitor & Market Data
• Interior Health – Royal Inland Hospital