Ottawa is Canada's capital, attracting millions of visitors annually for government business, tourism, and major events like Winterlude. That creates steady demand for short-term rentals year-round.
The city implemented STR regulations through By-law 2021-104 in July 2022, most recently amended by By-law 2024-469 (January 2024). It's one of Ontario's most detailed frameworks, covering everything from host permits to platform registration requirements. Here's the current breakdown.
What Counts as a Short-Term Rental?
Ottawa's definition is specific about what qualifies:
"Short-term rental means temporary accommodation in all or part of a dwelling unit for less than thirty (30) consecutive nights, where the host is compensated for providing the accommodation." Ottawa By-law 2021-104 § 2
Key elements of this definition:
- Under 30 nights - rentals of 30+ consecutive nights aren't STRs
- Compensation required - free guest stays aren't regulated
- All or part - includes whole-home and room rentals
- Dwelling unit - must be in a residential property
The Principal Residence Requirement
This is the cornerstone of Ottawa's STR rules:
"No person shall operate a short-term rental unless the dwelling unit is the principal residence of the host." Ottawa By-law 2021-104 § 4(1)
The by-law defines principal residence as where you "ordinarily reside" - your main home, not a vacation property or investment unit. You can only have one principal residence.
Investment Properties Don't Qualify
You cannot operate an STR from an investment condo, a second home in the city, or any property that isn't your primary residence. For investment properties, consider mid-term rentals (30+ consecutive nights) which fall outside the STR definition.
The Cottage Rental Exception
Ottawa has a unique provision for rural cottage owners:
"A cottage rental is the temporary use of a dwelling unit that is not the principal residence of the host, for less than thirty (30) consecutive nights... in a rural zone." Ottawa By-law 2021-104 § 2
If your cottage is located in one of Ottawa's designated rural zones, you can rent it short-term even if it's not your principal residence. This recognizes the traditional cottage rental economy in Ottawa's vast rural areas.
Permit Requirements
Every Ottawa STR host needs a valid permit:
Application Requirements
- Completed application form with property details
- Proof of principal residence (or rural cottage ownership)
- Floor plan showing the rental space
- Proof of insurance ($1M liability minimum)
- Declaration agreeing to comply with all requirements
Permit Fees
Your permit number must be displayed on all listings and advertisements for your property.
Platform Registration Requirements
Ottawa requires STR platforms to register and cooperate with enforcement:
"No person shall operate a short-term rental platform unless registered with the City and compliant with the requirements of this by-law." Ottawa By-law 2021-104 § 8
Platforms like Airbnb must:
- Register with the City and pay applicable fees
- Only list permitted hosts - verify permit numbers
- Collect and remit MAT (4% Municipal Accommodation Tax)
- Share data with the City for enforcement purposes
- Remove unlicensed listings upon City request
Guest Limits
Ottawa sets clear limits on how many people can stay:
"The maximum number of overnight guests in a short-term rental shall not exceed eight (8) persons in a dwelling unit, or ten (10) persons in an oversize dwelling unit." Ottawa By-law 2021-104 § 6
Two limits apply together: max 2 persons per sleeping room, and the total overnight cap shown above. You can have additional guests during the day for events, but overnight stays are strictly capped.
Insurance Requirements
Ottawa requires hosts to maintain adequate coverage:
"A host shall maintain liability insurance of at least one million dollars ($1,000,000) that covers the short-term rental operation." Ottawa By-law 2021-104 § 5
Key insurance requirements:
- $1,000,000 minimum liability coverage per occurrence
- Must specifically cover short-term rental activities
- Proof required with permit application and renewals
- Keep policy current - gaps in coverage violate the by-law
Municipal Accommodation Tax (MAT)
Ottawa charges 4% MAT on all short-term rentals:
"Every purchaser of transient accommodation shall pay to the provider thereof a tax at the rate of four per cent (4%) of the purchase price." Ottawa By-law 2019-252
For most hosts, this is handled automatically:
- Platform bookings: Airbnb and other registered platforms collect and remit MAT directly
- Direct bookings: You must collect 4% from guests and remit to the City
- Reporting: Platforms report to the City quarterly
Fines and Penalties
Ottawa's penalties are among the steepest in Ontario:
"Every person who contravenes any provision of this by-law is guilty of an offence and upon conviction is liable to a minimum fine of $500 and a maximum fine of $100,000 for each day the offence occurs." Ottawa By-law 2021-104 § 14 (as amended through By-law 2024-469)
Because each day of violation is a separate offence, the fines can stack fast. A host caught operating without a permit for a month could theoretically face $15,000 to $3,000,000 in cumulative fines, not a flat $100,000 cap.
Staying Compliant in Ottawa
As Canada's capital, Ottawa takes bylaw enforcement seriously. Here's how to stay on the right side:
- Get your permit first. Don't list your property until you have a valid permit number. Operating without one is the easiest violation to catch.
- Display your permit number. It must appear on every listing, advertisement, and booking confirmation. This is how the City verifies compliance.
- Verify your insurance annually. Make sure your policy specifically mentions short-term rental coverage. Get written confirmation from your insurer.
- Track guest counts. The 8/10 person overnight limit is strict. Large groups booking for parties are a red flag.
- Respond to complaints promptly. Noise and nuisance complaints that go unaddressed can lead to permit revocation.
- Keep good records. Document all bookings, guest communications, and any incidents. You may need to produce these for inspectors.
- Renew before expiry. Your 2-year permit has a hard expiration date. Operating on an expired permit is operating without one.
- Consider mid-term for flexibility. Rentals of 30+ consecutive nights aren't subject to these STR rules. Good for off-peak seasons or corporate stays.
Official City of Ottawa Resources
Always verify current rules with official sources:
Official Links
- City of Ottawa - Short-Term Rental By-law 2021-104
- City of Ottawa - STR Permits Information
- By-law Services: 311 or 613-580-2400
Common Questions From Ottawa Hosts
Can I Airbnb my investment property in Ottawa?
No. Ottawa requires STRs to be in your principal residence - the home where you normally live. Investment properties don't qualify. The exception is if you own a rural cottage in specific zones, but investment condos and urban properties must be your primary home.
What's the maximum number of guests I can host?
8 overnight guests in a standard dwelling, or 10 guests if you have an oversize dwelling (as defined in the by-law). During events, you can have additional daytime guests, but overnight stays are capped at these numbers.
How much does an Ottawa STR permit cost?
The host permit costs $123 total ($65 administrative fee + $58 permit fee) and is valid for 2 years. You'll need to renew before it expires. Additionally, platforms like Airbnb must register with the city.
What insurance do I need for Ottawa STR?
$1,000,000 liability insurance minimum that specifically covers short-term rental activities. Standard homeowner's insurance typically won't cover STR guests, so you'll need specialized coverage or a rider.
Does Airbnb collect the MAT tax automatically?
Yes. Major platforms like Airbnb are required to register with Ottawa and collect the 4% Municipal Accommodation Tax on your behalf. They remit it directly to the city, so you don't need to handle it separately for platform bookings.
What about my cottage in rural Ottawa?
Good news - Ottawa has a 'cottage rental' exception for rural zones. If your cottage is in a designated rural area and isn't your principal residence, you may still be able to rent it short-term. Check with the city to confirm your zone qualifies.
How quickly do I need to respond to complaints?
You or your designated contact must be reachable 24/7 and able to respond to urgent issues promptly. The by-law requires you to address nuisance complaints within a reasonable timeframe or face penalties.
What records do I need to keep?
Keep records of all rentals including guest names, dates, and any incidents. You may be required to produce these records for city inspectors. Keep them for at least 3 years after each rental.
This article is for informational purposes only and does not constitute legal advice. Bylaw and regulation details change frequently. Always verify current rules directly with your local municipality before making hosting decisions.
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