City council says it likes what its hearing from staff when it comes to regulating short-term rentals.
At this week's meeting, planners previewed some of their proposals, which include requiring business licenses and limiting the types of properties that can house temporary tenants.
Councillor Gail Given says when it comes to Kelowna's Airbnb hosts, the playing field needs to be leveled.
"If they're going to run a business, then they need to operate on the same level as those who have invested a lot of money into businesses in our community," she said.
"This is not a new thing. People have been short-term renting units, homes for a decade in Kelowna. So whether the regulation is this year or next year, glad to see it's underway."
Councillor Brad Sieben says he can think of a way that would make it very fair.
"What would be perfect in a utopian world is that if you rented out your residence for 100 days out of the year, then you should pay a commercial rate based on those 100 days, that's what really should happen," he said.
"But I think it's important to acknowledge too, that I think the public wants to have this as an option. It's just we need to regulate it."
City staff reaffirmed that most of the short term rentals are actually breaking city bylaws, which don't allow for property rentals of under a month in most residential zonings.
Vancouver, Victoria, Tofino, and Nelson all require their city's Airbnb operators to buy a business license.
Staff say as of last November, there were more than 1500 short term listings that took in an average of almost $200 per night.
Mayor Colin Basran acknowledged that policies are needed to regulate the local rental market.
"This is certainly a service that is needed and wanted in our community, for those visiting. But we also know that it's having some real negative consequences for people trying to find long term homes in our community, so I think this strikes a really good balance," he said.
"While I appreciate the efforts that staff will make to get feedback, we know that not everyone will be happy on either side. I think so far what we've found is good middle ground, here."
Kelowna's vacancy rate was last calculated to be 0.2%, with 3/4 of newcomers entering the rental market.
A draft policy is expected to be put together by the end of the year.