Can I rent my basement apartment on Airbnb or is that restricted in Ottawa?

Renting your basement apartment on Airbnb in Ottawa is heavily restricted and likely not permitted under current city bylaws. Ottawa has strict short-term rental regulations that significantly limit where and how you can operate vacation rentals.

Ottawa's Short-Term Rental Rules are quite restrictive compared to other cities. The city only allows short-term rentals (under 30 days) in your principal residence - meaning the home where you actually live. If your basement is a separate dwelling unit with its own entrance, kitchen, and living facilities, it's considered a secondary suite, not part of your principal residence. This means Airbnb rentals would not be permitted in most basement apartment configurations.

The regulations get more complex when you consider zoning and licensing requirements. Ottawa requires short-term rental operators to obtain a license, pay annual fees, and comply with safety standards including smoke detectors, carbon monoxide detectors, and emergency egress requirements. Even if you could somehow qualify, you'd need to ensure your basement meets all fire separation requirements (45-minute rating between units) and has proper egress windows for emergency exit.

Provincial and federal tax implications also apply. Short-term rental income must be reported as business income, and you may need to collect HST depending on your annual revenue. The Canada Revenue Agency treats Airbnb income differently than traditional rental income, often requiring quarterly remittances.

The safer and more profitable approach is typically long-term rental. Ottawa's rental market is strong, with basement apartments renting for $1,200-$2,200+ per month depending on size, location, and amenities. Long-term tenants provide steady income without the regulatory headaches, constant turnover, or potential bylaw violations that come with short-term rentals.

Before making any decisions, verify your property's zoning allows secondary suites and that your basement apartment has proper permits. The City of Ottawa Building Code Services (613-580-2424) can confirm what's permitted on your specific property. Insurance is another critical factor - most standard homeowner policies don't cover short-term rental activities, requiring specialized coverage.

If you're considering converting your basement into a rental unit, whether short or long-term, ensure it meets all Ontario Building Code requirements for secondary dwelling units. This includes proper ceiling heights, egress windows, separate utilities, and fire separation. For a consultation on basement apartment conversions that meet all legal requirements for long-term rental, contact Ottawa Basements for a free estimate.