Ottawa Short-term Rental (STR) Rules & Regulations Guide 2025

Table Of Contents

Last Updated on October 29, 2025 by Fullhome Airbnb Manager

In Ottawa, hosts must hold a valid Host Permit for their principal residence, pay a 4% Municipal Accommodation Tax (MAT), meet safety and insurance standards, and list only on registered platforms.

Non-compliance — such as renting a non-resident property or ignoring by-laws — can trigger fines up to $100,000 per day.

This guide explains all permit, zoning, tax and enforcement rules for Ottawa short-term rentals in 2025.

Introduction

Operating a short-term rental (STR) in Canada’s capital offers excellent opportunity — thanks to tourism, business travel and events in Ottawa.

But with this opportunity comes a strict regulatory environment. The city has introduced a dedicated by-law (By-law 2021-104) covering zoning, principal residence rules, host permits, tax obligations and enforcement.

So, whether you’re a first-time Airbnb host in Ottawa or an experienced investment owner looking to scale, understanding compliance matters.

Getting it wrong can mean heavy fines, permit revocation or forced conversions to long-term rental.

In this guide you’ll learn:

Who qualifies to legally host in Ottawa;
How to obtain and display your Host Permit;
What operational rules, tax duties and insurance standards apply;
What happens if you breach the regulations;
Why partnering with a professional manager like FullHome ensures smooth compliance and maximised income.

Ready to dive in?

Let’s begin with the foundational rules of the host permit and eligibility.

Host Permit & Eligibility Requirements in Ottawa

Ottawa’s Short-Term Rental By-law (No. 2021-104) regulates all rentals of less than 30 consecutive days. Whether you’re listing on Airbnb, Vrbo, or Booking.com, you must meet the city’s permit and zoning rules before accepting guests.

🔹 Principal Residence Requirement

STRs are only allowed in your principal residence — the home where you live most of the year.
Investment properties, secondary homes, and vacant units cannot be used for short-term rentals.
You can rent either the entire home when you’re away or individual rooms while you’re living there.

🔹 Host Permit Requirement

Every host must obtain a Short-Term Rental Host Permit from the City of Ottawa.
The permit ensures compliance with zoning, fire, safety, and insurance standards.
It’s valid for one year and must be renewed before expiry.

🔹 Application Process

Complete the Host Permit application on the City of Ottawa’s portal.
Submit required documents:
- Proof of residence (driver’s license or utility bill).
- Proof of insurance (minimum $1M liability coverage).
- Floor plan and parking layout.
Pay the $100 annual permit fee.
Display your permit number on all listings and advertisements.

🔹 Platform Registration

Only approved STR platforms (e.g., Airbnb, Vrbo) can operate in Ottawa.
The city cross-verifies listings with the host permit database, so unregistered properties are quickly flagged for enforcement.

💡 Tip: Apply early — processing can take several weeks, especially before peak tourism seasons like summer and the Canadian Tulip Festival.

Ottawa Zoning Rules & Property Restrictions

Ottawa regulates where short-term rentals can legally operate to protect long-term housing and neighbourhood stability. Understanding these zoning limits is essential before applying for your Host Permit.

🔹 Where Short-Term Rentals Are Allowed

STRs are only permitted in zones where residential use is allowed.
Your property must be located in an urban, suburban, or rural residential zone such as R1, R2, R3, R4, or equivalent.
Commercial zones that already allow transient accommodation (e.g., hotels, motels) may also be eligible.

🔹 Principal Residence Enforcement

The principal residence rule applies city-wide — even if your property is zoned correctly.
Proof of residency (driver’s licence, utility bill, or tax record) is required to confirm eligibility.
The city uses data-matching to verify that hosts don’t list multiple non-principal units under one name.

🔹 Condominiums & HOAs

Condo boards and HOAs can enforce stricter internal restrictions on STRs.
Many downtown Ottawa condos (especially in Centretown and ByWard Market) have banned Airbnb use to prevent building disruptions.
Always confirm with your condominium declaration or board before applying for your permit.

🔹 Rural & Cottage Exceptions

Properties in rural zones (e.g., Carp, Dunrobin, Greely) may host STRs with zoning exemptions, provided they meet septic and fire safety requirements.
Rural STRs must still register with the City and follow the same insurance, tax, and guest safety standards as urban hosts.

💡 Pro Insight: Ottawa actively audits Airbnb and Vrbo data — illegal STRs operating outside approved zones are frequently fined or delisted.

Operational Rules & Safety Standards

Once you’ve secured your Host Permit, you must comply with Ottawa’s day-to-day operating requirements under By-law 2021-104. These rules protect guests, maintain community peace, and ensure hosts operate safely and legally.

🔹 Occupancy & Guest Limits

The number of guests allowed depends on your home’s building code capacity and number of bedrooms.
As a general guideline: two adults per bedroom, up to a maximum of ten guests per dwelling.
Hosts must clearly display guest limits and emergency contact information inside the unit.

🔹 Noise & Community Conduct

The Noise By-law (No. 2017-255) restricts excessive noise between 11:00 PM and 7:00 AM.
Hosts are responsible for their guests’ behaviour — repeated noise complaints can result in permit suspension.
Keep outdoor gatherings, hot-tub use, and amplified music within permitted hours.

🔹 Parking & Waste Disposal

You must provide legal on-site parking where applicable.
Guests cannot block sidewalks, driveways, or neighbouring properties.
Garbage and recycling must follow the City’s collection schedule; no exterior waste bins before pickup day.

🔹 Fire & Building Safety

To keep your listing compliant, every STR must have:

Working smoke and CO detectors on each floor and in every bedroom.
Fire extinguishers in visible, accessible areas.
A clearly posted emergency evacuation plan near the exit.
Proof of passing the Fire Prevention & Building Inspection prior to permit approval.

🔹 Insurance Requirements

Hosts must hold at least $1 million in liability insurance that specifically covers short-term rental activity.
Many standard homeowner policies exclude STR operations, so dedicated coverage is essential.

🔹 Municipal Accommodation Tax (MAT)

Ottawa requires hosts to collect a 4% MAT on all stays of less than 30 days.
Airbnb and Vrbo automatically collect and remit this on behalf of hosts.
Independent hosts must remit MAT quarterly through the City’s MAT portal.

💡 Compliance Tip: Keep copies of fire inspection certificates, MAT remittance confirmations, and insurance policies — Ottawa conducts periodic audits for verification.

Penalties for Non-Compliance STR

Ottawa enforces its short-term rental bylaws through proactive inspections, digital audits, and platform data-sharing agreements. Hosts who ignore the rules risk serious financial and legal consequences.

🔹 Common Violations

Operating without a valid Host Permit
Listing a non-principal residence as an STR
Exceeding guest capacity or causing noise complaints
Failing to carry adequate insurance coverage
Not collecting or remitting the 4% Municipal Accommodation Tax

🔹 Fine Structure

$500 to $100,000 per day, depending on the violation type and frequency
Repeat offenders face higher penalties, with corporate operators subject to maximum fines
Each day an offence continues is considered a separate violation under By-law 2021-104

🔹 Enforcement Methods

The City of Ottawa actively monitors Airbnb, Vrbo, and booking data to flag unregistered listings
By-law officers conduct random inspections and respond to neighbour complaints
Platforms are required by law to remove unlicensed listings upon city request

🔹 Real-World Examples

In 2024, multiple downtown Ottawa properties were fined after operating without valid permits — some losing tens of thousands of dollars in revenue.
Condo boards have taken legal action against owners who breached building bylaws by renting units illegally.

💡 Bottom Line: Fines and delisting are avoidable. Staying licensed, insured, and tax-compliant is far less costly than recovering from a violation.

Step-by-Step Ottawa Short term rental [STR] Compliance Checklist

Use this simple checklist to keep your Ottawa Airbnb or short-term rental fully legal and operational:

✅ Confirm eligibility – STRs are only permitted in your principal residence.
✅ Apply for a Host Permit – Submit your application to the City of Ottawa with required documents and a $100 annual fee.
✅ Verify zoning – Ensure your property is in a residential or mixed-use zone that allows STRs (R1–R4).
✅ Pass fire & safety inspections – Install working smoke and CO alarms, a fire extinguisher, and an emergency plan.
✅ Carry $1M+ liability insurance – Dedicated STR insurance is mandatory under By-law 2021-104.
✅ Display your permit number – Include it in all online listings (Airbnb, Vrbo, etc.).
✅ Follow occupancy limits – Maximum two guests per bedroom, up to ten guests total.
✅ Respect quiet hours – Keep noise within legal limits between 11 PM–7 AM.
✅ Collect & remit the 4% MAT – Airbnb/Vrbo handle this automatically, but confirm compliance through the City’s MAT portal.
✅ Renew your permit annually – Apply before your permit expiry date to avoid delisting or fines.

💡 Pro Tip: FullHome can manage your entire compliance cycle — from permit renewal and inspections to tax filings and guest management — so you can focus on maximizing rental income.

How FullHome Helps Ottawa Hosts Stay Compliant

Managing a short-term rental in Ottawa requires more than great guest reviews — it demands ongoing compliance with strict municipal bylaws.

Full Home helps property owners stay fully licensed, tax-compliant, and inspection-ready while maximizing occupancy and income.

🔹 Licensing & Renewal Management

We take care of your Host Permit application, annual renewal, and documentation submissions directly through the City’s portal — no missed deadlines, no guesswork.

🔹 Safety & Inspection Preparation

Our compliance team ensures your property meets all fire, building, and zoning standards, coordinating inspections and maintaining required reports.

🔹 Tax & Record-Keeping Support

From the 4% MAT collection to HST reporting for high-volume hosts, FullHome tracks every transaction and keeps your financial records audit-ready.

🔹 Bylaw Monitoring & Updates

Ottawa’s STR rules evolve frequently. We monitor all municipal updates, notifying hosts of regulatory changes before they impact your listings.

🔹 Hands-Off Hosting for Busy Owners

Focus on guest experience while we handle the compliance. From documentation to guest screening and cleaning, we provide end-to-end Airbnb management in Ottawa and across Ontario.

💡 With FullHome, Ottawa hosts can earn confidently — knowing every regulation, inspection, and tax filing is handled with precision.

FAQs About Ottawa STR Rules

1. Do I need a license to run an Airbnb in Ottawa?

Yes. Every host must hold a valid Short-Term Rental Host Permit issued by the City of Ottawa. Operating without one violates By-law 2021-104 and can result in daily fines.

2. Can I rent out my condo or investment property as an STR in Ottawa?

No. Only your principal residence can be used for short-term rentals. Investment or secondary properties are prohibited unless operating as a hotel or in a commercial lodging zone.

3. How much does the Ottawa Airbnb permit cost?

The annual Host Permit fee is $100. You must renew the permit each year to continue hosting legally.

4. What are the occupancy limits for short-term rentals in Ottawa?

Hosts can accommodate up to two guests per bedroom, to a maximum of ten guests per property, subject to building and fire code compliance.

5. Do I have to collect taxes from guests?

Yes. Ottawa requires a 4% Municipal Accommodation Tax (MAT) on all stays under 30 days. Airbnb and Vrbo collect and remit this automatically, but hosts are responsible for verification.

6. What are the penalties for illegal STR operations in Ottawa?

Fines range from $500 to $100,000 per day. Repeated or serious offences can lead to permit suspension or permanent disqualification.

7. Do I need special insurance for my Airbnb in Ottawa?

Yes. Hosts must maintain at least $1 million in liability insurance that specifically covers short-term rental operations.

References

City of Ottawa. (2025). Short-Term Rental (STR) Host Permit – Application Guide & Principal-Residence Rules. Retrieved 29 Oct 2025 from https://ottawa.ca/en/planning-development-and-construction/short-term-rentals
City of Ottawa. (2025). By-law No. 2021-104 – Respecting Short-Term Rentals (consolidated version 2025). Retrieved 29 Oct 2025 from https://ottawa.ca/en/city-hall/laws-licenses-and-permits/laws/by-law-title/short-term-rentals
City of Ottawa. (2025). Municipal Accommodation Tax (MAT) – 4% Levy & Remittance Requirements for STR Operators. Retrieved 29 Oct 2025 from https://ottawa.ca/en/city-hall/revenue-services/municipal-accommodation-tax-mat
City of Ottawa. (2025). Zoning By-law 2008-250 – Residential Zones & Permitted Uses for Short-Term Rentals. Retrieved 29 Oct 2025 from https://ottawa.ca/en/planning-development-and-construction/zoning-and-development/zoning-by-law
City of Ottawa. (2025). Enforcement & Administrative Penalty Information – Maximum Fine Schedule (up to $100,000 per day). Retrieved 29 Oct 2025 from https://ottawa.ca/en/city-hall/bylaw-enforcement
Ontario Ministry of the Solicitor General. (2025). Fire Code O. Reg. 213/07 – Smoke & CO Alarm, Extinguisher and Evacuation Plan Requirements for Short-Term Rentals. Retrieved 29 Oct 2025 from https://www.ontario.ca/laws/regulation/070213
Canada Revenue Agency. (2025). GST/HST and Municipal Accommodation Tax – Guidance for Platform Hosts in Ontario. Retrieved 29 Oct 2025 from https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-accommodation-platforms.html