Ottawa's short-term rental (STR) bylaw restricts Airbnb-style rentals to a host's principal residence (with limited exceptions). For homeowners who DO qualify, renovating for STR is a $10K-$95K investment that can return $25K-$75K/year in revenue. Here's the 2026 bylaw, renovation specs, and ROI playbook.
Ottawa's Short-Term Rental Accommodation By-law restricts STR to the operator's principal residence. Three categories: (1) Primary dwelling — whole home rented when owner is away, up to 12 months/year. (2) Secondary suite within principal residence — rented while owner remains in primary unit, no day limit. (3) Owner-occupied bedroom — rented while owner is present, no day limit. Cottage/seasonal rentals follow separate rules. All require host permit ($110 application) + active listing with City...
(1) Convert basement to legal secondary suite: $65K-$135K. Average Ottawa STR ADR for 1-bed basement suite $135-$185, occupancy 65-80% = $32K-$54K/year revenue. (2) Convert garage or detached structure to coach house/garden suite: $145K-$325K. Higher ADR ($165-$245) but bigger investment. (3) Master bedroom + ensuite refresh for owner-occupied bedroom rental: $15K-$35K. ADR $85-$135, occupancy 50-70% = $15K-$28K/year. (4) Whole-home upgrade for primary dwelling STR when traveling: $25K-$55K (fur...
Interconnected smoke alarms in every bedroom and on every floor (mandatory). Carbon monoxide detector within 5m of every sleeping area. Fire extinguisher (5lb ABC minimum) on each floor. Emergency egress from every sleeping area (window or door). Posted emergency contact + emergency exit plan. For secondary suites: 1-hour fire separation between units (OBC 9.10.9.14), self-closing fire-rated doors, dedicated electrical service (if separate metering). Working code-compliant heating system. Annual...
Professional photography ($400-$800) is highest-ROI single investment — listings with pro photos book 30-50% more nights. Design priorities: bright neutral palette (whites, light wood, light grey — photographs better than dark colours), consistent lighting throughout (warm 2700-3000K), high-quality bedding ($300-$600 per bed), upgraded shower fixtures, statement wall in living area, dedicated workstation (post-2020 essential for business travelers). Avoid: cluttered decor, owner's personal items...
Example: $95K basement suite conversion. Year 1 ADR $150, occupancy 70% = $38K gross revenue. Year 1 operating costs (utilities, cleaning, supplies, platform fees ~22%, insurance, maintenance): ~$15K. Net: $23K. Payback on $95K: ~4.1 years. ROI thereafter: 24%/year. Beats most other Ottawa investments. Tax: STR revenue is taxable; you can also deduct depreciation on the suite renovation (consult accountant for CCA rules and HST implications).
(1) Bylaw changes — Ottawa has tightened STR rules twice since 2018; further restrictions possible. (2) Insurance — most homeowner policies don't cover STR; need landlord/STR-specific policy ($400-$1,200/year premium). (3) Mortgage lender approval — some mortgages prohibit STR use; verify in writing. (4) Condo board STR bans — most Ottawa condo declarations prohibit STR; verify before renovating. (5) Neighbour complaints leading to bylaw enforcement. (6) Platform algorithm changes affecting visi...
Yes if it's your principal residence (whole home when you're away, OR a secondary suite/bedroom while you remain). Investment-only STR is prohibited. Host permit ($110) and active listing with City of Ottawa required. Verify current bylaw status before investing in renovations.
Legal basement secondary suite conversion: $65K-$135K investment, $32K-$54K/year revenue, 3-5 year payback. Highest ROI of all STR renovation strategies in Ottawa.
City of Ottawa host permit ($110 application). If converting to a secondary suite for STR use: building permit, electrical permit, plumbing permit, possibly fire-separation upgrades. Annual permit renewal and continuous compliance with bylaw required.
Interconnected smoke alarms in every bedroom + every floor, CO detector within 5m of sleeping areas, fire extinguishers on each floor, emergency egress from every sleeping area, posted emergency contacts. Secondary suites require 1-hour fire separation per OBC 9.10.9.14.
Yes — standard homeowner insurance excludes STR use. Need landlord/STR-specific policy (Aviva, Allianz, Square One, others offer Ottawa STR coverage). Typical premium $400-$1,200/year. Without proper insurance, claims may be denied AND policy can be voided.