Newsletter.strscout.com Higher interest rates and stricter regulations are causing some Canadians to reconsider investing in short-term rental properties. The real estate market in Kelowna, B.C. is saturated with properties zoned for short-term rental use, leading to an increase in listings and a decrease in demand. Challenges for short-term rental investors include higher interest rates, changing regulations, and the need to generate enough income to cover mortgage costs.