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Short-Term Rentals in Vernon: What BC's Rules Mean for East Hill Owners

By Sean Phillips, REALTOR® ·

Guest suite bedroom

Quick answer: In Vernon, you can generally only run a short-term rental in the home you live in, plus one secondary suite or accessory dwelling on the same property. You also need a provincial short-term rental registration and a City of Vernon business licence, and both numbers must appear on your listings.

East Hill is close to downtown, the hospital, and a short drive from Kalamalka Lake and SilverStar, so it's natural to wonder whether a suite or carriage house could earn money from visitors. BC's short-term rental rules changed a lot in recent years. Here's what they mean for East Hill owners and buyers.

General information only, current as of 2026. Rules and fees change, so confirm with the Province of BC, the City of Vernon and your lawyer or accountant.

What counts as a short-term rental?

BC's short-term rental legislation covers accommodation offered to the public for short stays, typically through platforms like Airbnb, VRBO or Booking.com. Rentals of more than 90 days per booking are outside the Act. Longer-term tenancies generally fall under the Residential Tenancy Act instead, which has its own rules for landlords and tenants.

The provincial principal residence requirement

BC's Short-Term Rental Accommodations Act applies a principal residence requirement in municipalities with 10,000 or more people and some smaller neighbouring communities. Vernon is on the Province's list of communities where it applies.

Under the requirement, a host can offer short-term rentals only in:

  • their principal residence, meaning the place they usually live day to day; plus
  • one secondary suite or accessory dwelling unit on the same property.

In practice, that means buying a second East Hill house purely to run as a nightly rental isn't an option under these rules. Living in the main house and renting a suite or carriage house short-term may be possible, if the City's rules also allow it.

Provincial registration

Hosts must register each short-term rental unit with the Province's registry and display the registration number on every listing. As of 2026, annual registration fees are:

  • $100 (plus a small service fee) for a unit in the host's principal residence; and
  • $450 (plus a small service fee) for a secondary unit, such as a suite or accessory dwelling unit.

Registrations must be renewed every year. If the local government requires a business licence, you'll need to provide it when you register, and show the licence number on listings too.

City of Vernon rules

The City of Vernon requires anyone operating a short-term rental to hold a City business licence, renewed annually. Key points from the City's regulations:

  • Principal resident on site: for a secondary suite or accessory building used as a short-term rental, the principal resident must live in a dwelling on the same lot.
  • Guest limits: no more than two guests per bedroom, up to a maximum of eight guests per unit at one time.
  • One booking at a time per unit.
  • Fees: as of 2026, a non-refundable application fee plus an annual licence fee. Check vernon.ca for current amounts.
  • Zoning: the use must also comply with zoning, so confirm the property's zoning before you buy or build.

The City publishes a Short-Term Rental Operator's Guidebook on vernon.ca that's worth reading end to end.

What this means if you're buying on East Hill

  1. Plan to live there. Short-term rental income is only realistic in your own home or its suite.
  2. Don't count on income you can't legally earn. A seller's past short-term rental income may not be available to you under current rules.
  3. Check the suite's legal status. A suite must meet zoning and building requirements, and insurance for short-term guests is different from standard home insurance.
  4. Compare with a long-term tenant. A long-term tenancy offers steadier income and less turnover. It comes with Residential Tenancy Act obligations instead.
  5. Talk to your lender and accountant about how rental income is treated for qualifying and for tax.

Our buying in East Hill page goes deeper into what to check before an offer, and our FAQ covers other common questions. For neighbourhood-level knowledge of East Hill's older homes and suites, meet Tim Jones, a fellow agent we feature as our local East Hill expert.

You can browse current listings through the live MLS® search for East Hill homes for sale.

FAQ

Can I buy an East Hill house just to run as an Airbnb?

Generally no. Vernon is subject to BC's principal residence requirement, so short-term rentals are limited to your own home plus one suite or accessory dwelling on the same property.

Do I need a business licence for a short-term rental in Vernon?

Yes. The City of Vernon requires a business licence, renewed annually, and the Province requires a separate short-term rental registration.

How many guests can stay in a Vernon short-term rental?

The City allows up to two guests per bedroom, to a maximum of eight guests per unit at one time.

Weighing an East Hill home with a suite? Call or text Sean at 778-363-0542, or call the Sarah AI info hotline any time at 604-227-4810.

Featured photo: stock image from Unsplash, for illustration.

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Sarah is our AI real estate assistant. She's free, she answers calls and texts 24/7, and she knows Vernon and its neighbourhoods. Ask her about East Hill streets, schools, what homes are going for, or how buying and selling works. No pressure and no sales pitch. When you're ready to take the next step, Sarah connects you with Sean.

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FEATURED EAST HILL AGENT

Tim Jones, East Hill local expert

We feature Tim because nobody knows East Hill like someone who lives here. Tim has called Vernon home for 49 years, has 23 years in Vernon real estate, has built or renovated more than seven homes, and lives in East Hill himself. For hyper-local questions about specific streets and older homes, Tim is a great person to talk to.

More about Tim →

Tim Jones, PREC*
Coldwell Banker Executives Realty
Direct: 250-550-6979
[email protected]

Browse East Hill listings on Tim's site

Tim is a fellow independent REALTOR® with Coldwell Banker Executives Realty whom we feature for his East Hill expertise. We are not a team or partnership.