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. In addition, non-compliance carries fines up to $100,000.
The Principal Residence Rule
The bylaw limits short-term rentals to the host’s principal residence. Specifically, you cannot rent out an investment property as a short-term rental. This rule holds 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.
However, one exception exists. A secondary suite within your principal residence qualifies. For example, a basement apartment or laneway house fits this category. 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. In addition, a secondary suite permit costs $250.
- 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. Specifically, they must respond to complaints within one hour.
- Safety plan: Posted emergency exits, working smoke and CO alarms, and a fire extinguisher on each floor.
Penalties for Non-Compliance
Fines start at $500 for a first offense. For corporations, they escalate to $100,000. The city employs a dedicated enforcement team that monitors listing platforms and responds to neighbour complaints. However, fines are not the only risk. Bylaw officers can order the cessation of rentals at an unlicensed property. In addition, platforms may delist non-compliant hosts.
Does Short-Term Renting Still Pay?
For a primary residence with a secondary suite, the answer is often yes. For example, a one-bedroom basement unit in Centretown rents for $1,950 long-term. On Airbnb with 75% occupancy, it can gross $3,000–$3,800 per month. 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, the answer is no. The bylaw bans it outright. Instead, the playbook for these units is mid-term corporate rentals of 30+ day stays. These 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. Therefore, an investment condo rented short-term violates the bylaw. This holds regardless of whether the condo corporation allows it.
What counts as a “short-term rental”?
Any rental of fewer than 30 consecutive nights. In contrast, stays of 30 days or more are treated as regular residential tenancies. As a result, they are exempt from the bylaw.
How do I apply for an Ottawa short-term rental permit?
Applications open through the city’s online portal. First, you need proof of principal residence, such as a driver’s license or utility bill. In addition, you need proof of insurance, a floor plan marking exits, and the permit fee. Processing takes two to four weeks.