How much rental income can I realistically expect from a basement apartment in Ottawa?

Basement apartment rental income in Ottawa typically ranges from $1,200-$2,200 per month, depending on size, location, and amenities. The actual amount depends heavily on whether you're in the urban core, suburbs, and the quality of your finished space.

Location is the biggest factor in determining rental rates. A legal one-bedroom basement suite in downtown Ottawa, Westboro, or the Glebe can command $1,800-$2,200 monthly, while similar units in Kanata, Barrhaven, or Orleans typically rent for $1,200-$1,600. Bachelor units generally rent for $200-$400 less than one-bedroom spaces.

Quality and amenities significantly impact rental rates. A professionally finished basement apartment with separate entrance, full kitchen, in-suite laundry, and good natural light will rent at the higher end of the range. Basic conversions with shared laundry and minimal natural light will be at the lower end. Features like parking, air conditioning, and updated appliances can add $100-$200 to monthly rent.

Ottawa's rental market specifics show strong demand for legal secondary suites, especially near transit lines and universities. The city's R4 zoning allows secondary suites in most residential areas, but your unit must be legal to advertise openly and command top rates. Illegal suites face significant risks and typically rent for 15-20% below market rate due to limited advertising options.

Current Ottawa market conditions show vacancy rates around 2-3%, meaning good units rent quickly. However, factor in typical vacancy periods (1-2 months annually), property management costs if you hire help (8-12% of rent), and maintenance reserves. Your net rental income will typically be 75-85% of gross rent after expenses.

Important considerations include ensuring your basement meets Ontario Building Code requirements for ceiling height (6'5" minimum), egress windows, and fire separation. Insurance companies may deny claims for illegal suites, and the city can order non-compliant units closed. The rental income potential is excellent, but only if the conversion is done properly with permits.

For a comprehensive assessment of your basement's rental potential and what renovations would maximize income, Ottawa Basements offers free consultations to evaluate your space and local market conditions.