Can we finish around the furnace and water heater, or do they need to be enclosed?

Yes, you can finish around your furnace and water heater, but they must be properly enclosed with fire-rated materials and adequate ventilation - you cannot simply frame and drywall around them like a regular room.

When finishing a basement in Ottawa, the Ontario Building Code requires mechanical equipment to be separated from living spaces with proper fire-rated assemblies. This doesn't mean hiding them completely, but rather creating a dedicated mechanical room that meets safety standards while allowing your basement renovation to proceed around them.

Fire separation requirements mandate that furnaces and water heaters be enclosed with materials that provide at least a 45-minute fire rating. This typically means 5/8" Type X drywall on both sides of the framing. The mechanical room must also have adequate combustion air supply - gas appliances need fresh air to operate safely, and this often requires dedicated ventilation ducts or louvers connecting to the outside or upper floors.

Clearance requirements are critical and vary by appliance type. Gas furnaces typically need 24-30 inches of clearance on the service side, while electric units may need less. Water heaters require access for maintenance and replacement - you'll need enough space to actually remove and install a new unit when the time comes. Many Ottawa homeowners make the mistake of building too tight around equipment, creating headaches for future service calls.

Planning considerations should include future equipment replacement. That 15-year-old furnace will eventually need replacement, and HVAC technology continues to evolve toward more efficient but sometimes larger units. Smart design creates a mechanical room that's functional now but adaptable later. Consider including provisions for a utility sink, water softener, or electrical panel if they'll be in the same area.

For basement renovations creating secondary dwelling units, mechanical separation becomes even more important as the Ontario Building Code has stricter requirements for multi-unit buildings. The mechanical room often needs direct access from the main unit rather than the rental unit, which affects your floor plan design.

Professional installation is essential for the gas connections, electrical work, and ensuring proper combustion air supply. While you might handle some framing yourself, gas appliance work requires licensed TSSA technicians, and electrical connections need ESA permits. Getting this wrong creates serious safety and insurance liability issues.

For a comprehensive basement finishing plan that properly integrates your mechanical room while maximizing your living space, contact Ottawa Basements for a free consultation. We'll help you design a solution that meets all code requirements while creating the finished basement you're envisioning.