Can I Airbnb my basement suite, or does Ottawa have restrictions?

Yes, you can Airbnb your basement suite in Ottawa, but there are specific regulations you must follow under the city's short-term rental licensing program that launched in 2021.

Ottawa requires all short-term rental operators to obtain a license before listing their property on platforms like Airbnb. The annual license fee is $315, and you must renew it each year. Your basement suite must be your principal residence - meaning you live in the same building for at least 185 days per year. This prevents investors from converting entire buildings into unlicensed hotels while allowing homeowners to rent out secondary spaces in their homes.

Fire safety and building code compliance are critical requirements. Your basement suite must meet Ontario Building Code standards for secondary dwelling units, including proper fire separation (45-minute rating between units), adequate ceiling height (minimum 6'5"), emergency egress windows, and separate electrical panels. The city can inspect your property as part of the licensing process, so having proper permits for your basement renovation is essential. If your suite was converted without permits, you'll need to bring it up to code before getting your short-term rental license.

Ottawa's zoning bylaws also apply to short-term rentals. Most residential zones (R1-R5) permit short-term rentals in principal residences, but some heritage districts and specific neighborhoods have additional restrictions. You'll need to check if your property is in an area with special zoning considerations. The city maintains a map of eligible areas on their website at ottawa.ca.

Parking requirements can be a consideration depending on your zone and property setup. Some areas require one parking space per rental unit, though this varies by location. Additionally, you must maintain proper insurance - many standard homeowner policies don't cover short-term rentals, so you may need commercial or specialized coverage.

Regarding taxes and income reporting, rental income from your basement suite is taxable, and you must collect and remit the 4% Municipal Accommodation Tax (MAT) to the city. Platform fees, cleaning, and property maintenance are generally deductible business expenses.

The application process typically takes 4-6 weeks and requires proof of principal residence, property insurance, fire safety compliance, and zoning verification. Operating without a license can result in fines up to $100,000, so it's worth doing this properly from the start.

For a free consultation about bringing your basement suite up to code for short-term rental compliance, contact Ottawa Basements - we specialize in secondary dwelling units that meet all city requirements.