Vernon Waterfront Homes

Waterfront guide

Short-term rentals on the water: what's allowed

Many buyers hope a lake house will pay for itself in summer rentals. In Vernon and Coldstream, the rules make that much harder than it used to be.

Updated September 2026

Short answer: BC's principal-residence requirement applies in Vernon and Coldstream. You can generally only short-term rent (under 90 days) your own principal residence, plus one secondary suite or carriage house on the same property. Coldstream bans short-term rentals except bed and breakfasts in specially zoned properties. Certain strata-titled hotels and motels are exempt from the provincial rule. Regional District electoral areas aren't covered by the provincial rule, but local zoning still applies.

Vernon

Coldstream (most of Kalamalka Lake)

Coldstream prohibits short-term rentals of the Airbnb type. The only exception is a bed and breakfast in a property zoned for it, run by the registered owner inside their principal residence, with a District business licence.

Exceptions: strata hotels

The provincial rule exempts certain strata-titled hotels and motels that operate like a hotel. Whether a particular complex, or a particular unit within it, qualifies depends on its zoning, covenants and rental-management arrangements, and the City of Vernon has its own licensing rules for strata-hotel units. Before you buy for rental income, get written confirmation of the unit's status from the strata, the Province's short-term rental registry and the City. Even where an exemption applies, you'll need the right commercial insurance, and to pay tax and run it like a business.

Regional District areas and reserve land

The principal-residence rule doesn't apply in most regional district electoral areas, so some rural waterfront outside the municipalities can be rented short term, subject to regional district zoning. On Okanagan Indian Band leased land, rental rules come from the band and the lease.

Long-term rentals

Renting to a long-term tenant (at least a month at a time) is generally allowed and is one way a second-home owner can qualify for an exemption from the speculation and vacancy tax, if the tenancy lasts at least 6 months of the year under a written agreement.

Frequently asked questions

Can I Airbnb my Vernon lake house if I don't live in it?

Generally no. Vernon is covered by BC's principal-residence requirement, so short-term rentals are limited to your principal residence plus one secondary suite or accessory dwelling, unless the property qualifies for an exemption.

Are any Vernon waterfront properties exempt from the short-term rental rules?

Some strata-titled hotels and motels are exempt from the provincial principal-residence rule. Confirm a specific complex's and unit's status with the strata, the Province and the City before you buy.

Can I short-term rent a home on Kalamalka Lake in Coldstream?

Coldstream prohibits short-term rentals except bed and breakfasts in properties zoned for them.

Sources: BC principal residence requirement, BC short-term rental legislation, Short-Term Rental Accommodations Regulation, City of Vernon short-term rentals, District of Coldstream short-term rentals.