Can I rent to my adult child and still have it count as a legal secondary suite?

Yes, you can absolutely rent to your adult child and it will still count as a legal secondary suite in Ottawa. Family relationships don't disqualify a secondary dwelling unit from meeting legal requirements or zoning compliance.

The key distinction is between legal compliance and tax implications. From a building code and zoning perspective, your secondary suite must meet all the same requirements regardless of who lives there - proper fire separation, egress windows, separate entrance, minimum ceiling heights, and all other Ontario Building Code standards. The City of Ottawa's R4 zoning requirements for secondary suites apply whether you're renting to strangers or family members.

Where family rentals get complicated is on the tax side. If you're charging your adult child fair market rent and treating it as a legitimate rental arrangement with a lease agreement, you can generally claim rental income and expenses like any other landlord. However, if you're charging significantly below market rent or have an informal arrangement, the Canada Revenue Agency may scrutinize whether it's truly a rental property for tax purposes. This could affect your ability to claim capital cost allowance, rental expenses, or impact principal residence exemptions when you sell.

For Ottawa specifically, secondary suites in R4 zones must meet minimum size requirements - 28 square meters for a bachelor unit or 37 square meters for a one-bedroom. The unit needs a separate entrance (or shared entrance with separate locking access), proper fire separation with 45-minute rating between units, and adequate parking based on your specific zone requirements.

Professional guidance is important here because while the building code compliance is straightforward, the financial and legal structure of family rentals can be complex. You'll want to consult both a tax professional about the rental income implications and ensure your secondary suite meets all permit requirements regardless of the tenant relationship.

For a free consultation about converting your basement into a legal secondary suite that meets all Ottawa requirements, contact Ottawa Basements. We specialize in secondary dwelling units and can guide you through the entire permit and construction process.