Ottawa’s short-term rental bylaw changed the math for hosts. Since June 2024, every short-term rental operated more than 30 nights per year needs a city permit. The rules apply whether you list on Airbnb, Vrbo, or any other platform. Non-compliance carries fines up to $100,000.
The Principal Residence Rule
The bylaw limits short-term rentals to the host’s principal residence. You cannot rent out an investment property as a short-term rental — even if you live in Ottawa and own a second unit across town. The city cross-references addresses with property tax records and utility data to verify the claim.
Exception: a secondary suite within your principal residence — like a basement apartment or laneway house — qualifies. As long as you live in the main dwelling, the suite can operate as a short-term rental.
Permit Requirements
- Annual permit fee: $110 for a primary residence permit, $250 for a secondary suite permit.
- Municipal accommodation tax: 4% on every booking, remitted quarterly.
- Liability insurance: $2 million minimum coverage.
- Contact person: A local contact must be available 24/7 to respond to complaints within one hour.
- Safety plan: Posted emergency exits, working smoke and CO alarms, fire extinguisher on each floor.
Penalties for Non-Compliance
Fines start at $500 for a first offense and escalate to $100,000 for corporations. The city employs a dedicated enforcement team that monitors listing platforms and responds to neighbour complaints. Fines are not the only risk — bylaw officers can order the cessation of rentals at an unlicensed property, and platforms may delist non-compliant hosts.
Does Short-Term Renting Still Pay?
For a primary residence with a secondary suite: yes, often. A one-bedroom basement unit in Centretown that would rent for $1,950 long-term can gross $3,000–$3,800 per month on Airbnb with 75% occupancy. After the 4% MAT, cleaning, supplies, and the permit fee, the net premium over long-term rent is $600–$1,200 monthly.
For a stand-alone investment property: no, the bylaw bans it outright. The playbook for these units is mid-term corporate rentals (30+ day stays) which bypass the short-term rental rules while still commanding a premium over annual leases.
Frequently Asked Questions
Can I Airbnb my investment condo in Ottawa?
No. The principal residence rule means only the unit you actually live in qualifies. An investment condo rented short-term violates the bylaw regardless of whether the condo corporation allows it.
What counts as a “short-term rental”?
Any rental of fewer than 30 consecutive nights. Stays of 30 days or more are treated as regular residential tenancies and are exempt from the bylaw.
How do I apply for an Ottawa short-term rental permit?
Applications open through the city’s online portal. You need proof of principal residence (driver’s license, utility bill), proof of insurance, a floor plan marking exits, and the permit fee. Processing takes two to four weeks.