What was once an investment property for James Milacic has become a financial burden.
“I’ve already lost tens of thousands of dollars,” Milacic told Global News. “I’m going to continue to bleed.”
Milacic owns a unit at Kelowna, B.C.’s Playa Del Sol building, which was built and zoned for short-term rentals.
However, due to provincially-mandated restrictions on short-term rentals (STR), Milacic has been unable to rent it to tourists since May 2024.
“I tried selling it last year. I couldn’t even sell it and then I dropped it in price, my monthly rent. I dropped that price by $1,000. I couldn’t rent it,” he said.
Kelowna is flooded with empty condo and rental units, with the city’s vacancy rate now the highest in all of Canada at more than six per cent.
It’s among the reasons why the city wants the restrictions on short-term rentals loosened.
On Monday, city council voted unanimously in favour of asking the province to opt out of the Short Term Rental Accommodation Act and for that approval to be granted sooner rather than later.
Legislation stipulates a process in which approval is granted by the end of March, with the exemption going into effect on Nov. 1.
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“It makes zero sense for it to be Nov. 1. It sounds like a very, very simple thing that they could do to just change that date,” said restaurant owner Casey Greabeiel.
Many in the hospitality industry have been vocal about the restrictions, saying they believe the rules have hurt the local economy.
In Greabeiel’s case, he shut down one of his three restaurants last year citing the restrictions as a contributing factor.
“It would be impossible not to attribute it in some sense. Our summer volume has gone down to downtown restaurant,” Greabeiel said.
The minister responsible was unavailable for comment Monday.
“The Ministry is aware that this was scheduled as a topic of discussion at the City of Kelowna’s council meeting on Jan. 12, 2026,” stated a spokesperson for the ministry of housing and municipal affairs.
The email reiterated that, “Local governments looking to opt out must request this by March 31, 2026. Once approved later that spring by Cabinet, any changes take effect on November 1 of that same year.”
“Everybody needs a win in the small business community, everybody,” said Greabeiel.
Greabeiel added that he would hope the province considers seriously what city officials are asking for.
“It really shows how the province values the opinion of our city and our elected officials locally,” Greabeiel said.
“For the province not to align with that, to me, it would just be like completely like almost spitting in the face of the community of Kelowna.”
Milacic echoed the sentiment and urged the province to act accordingly.
“For the government not to allow this to happen before summer, to wait till November, there’s no explanation,” Milacic said.
“You’re messing with people’s livelihoods. That’s wrong.”
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