So you’re thinking about getting into the vacation rental game in Kelowna. With short-term rental rules easing up again, folks are jumping back in. The City just made some changes to match the new provincial standards, which have created a lot of new opportunities for investors. If you’ve been sitting on a property or looking to invest, now’s the time to think about what makes the most sense. Should you build something new? Or, fix up what you’ve got? At Arnold Construction, we’ve been building and renovating homes in Kelowna for over 20 years, and we can tell you there’s no one-size-fits-all answer. It comes down to your lot, your goals, and your budget. But either way, there’s money to be made if you do it right.
Understanding the New Rules and the Return of ROI
Last year, short-term rentals got locked down tight. The city had pulled back on STRs, and people were left wondering what to do with their investment properties. But now, thanks to new provincial guidelines, the City of Kelowna has loosened up. You can now apply for a business license for a short-term rental again, provided that the place is your principal residence. That means either your main home, a legal secondary suite, or a carriage house.
If you intend to use your principal residence for short-term rentals, you could stand to cover your mortgage part-time. This opens doors for buyers who may have been on the fence. If you can get short-term rental income from a suite or a backyard carriage house, you’re looking at some solid help with monthly costs.
If you’re buying a lot or a home, make sure the property is zoned right and that any suite is legal. Don’t assume you can “just add a kitchenette” and call it a day. The city’s acceptance of STRs remains somewhat strict, requiring operators to have a license and register with the province. Failure to comply with these regulations could mean that you get hit with some hefty fines. You don’t want to invest your savings into a setup that’s not going to pass inspection. We’ve seen people rush the process and end up tearing things apart just to comply. Do it right from the start, and you’ll sleep easier.
Build a New Vacation Rental Kelowna or Renovate?
Building new has its perks. You get exactly what you want, right down to the finishes and layout. You can design for short-term rental from day one. That means separate entrances, soundproofing, and layouts that make sense for guests. You can also build energy-efficient systems, add storage, and create outdoor spaces that people are excited to use. And if you already own a lot or a home with a big yard, adding a carriage house might be your best bet.
But building takes time. You’ll need permits, plans, trades, and inspections. The process can stretch 8 to 12 months. And with rising material and labour costs, you’ve got to plan your budget with wiggle room. However, if you’re patient and want full control, this is a great way to go.
Renovating, on the other hand, can be faster and sometimes cheaper, granted that the bones of the house are good. A basement suite can often be converted into a rental if you already have the plumbing and ceiling height. You’ll just need to make sure it meets city code. During the reno process, you will likely need to add a second exit, proper fire separation, and soundproofing. But you probably won’t be waiting a year to get started.
If you’re renovating for short-term rental, make sure you consider the functionality of the space. Guests want clean, simple, and private. And don’t skimp on insulation between units. Outdoor space is another big factor to think about. Vacationers love a good patio or BBQ setup. Even a small yard can feel like a luxury in Kelowna. Throw in some string lights and a couple of Adirondack chairs, and you’ve got yourself a five-star backyard!
Expert Design Tips for Your Vacation Rental Kelowna
Whether you’re building or renovating, it’s important to design with guests in mind. Think about what makes a stay great. Privacy, comfort, and simplicity. That’s what keeps your place booked and your reviews glowing.
Start with the layout. Open concept is great, but guests still want zones. For instance, places to eat, relax, and sleep. Don’t try to cram too much into a small space. It’s better to have a functional one-bedroom with good flow than a cramped two-bedroom.
Include laundry if you can, especially if you’re hoping to attract families or long weekend visitors. You’ll also want to ensure your hot water tank can keep up with the increased demand. After all, nobody likes a cold shower on vacation! Storage is another big-ticket item. Even just a bench with cubbies or some wall hooks makes a difference. People need a place to toss their bags and hang wet towels.
If possible, include a workspace. A small desk with a lamp and outlet can be a big help for remote workers or those in town for business. Outside, keep it tidy. Landscaping doesn’t need to be extravagant, but it should look intentional. Gravel paths, solar lights, and a private sitting area go a long way. And if you’re near the lake or wineries, lean into that. Build a vibe that fits the experience.
Need some more design inspiration? Take a look at April’s post about design trends to see what’s new and exciting this year.
Start Building Your Dream Vacation Rental Kelowna Today!
Whether you’re fixing up a suite or building a brand-new vacation rental in Kelowna, you’ve got options. The rules have changed, and that means more doors are opening for investors and homeowners alike. If you’ve got questions or want help with a custom build or renovation, contact us today. Be sure to check out our social media for past projects and build inspiration!
