Can I use a secondary suite for Airbnb in Ottawa?

Yes, you can use a secondary suite for Airbnb in Ottawa, but there are specific regulations you must follow that differ from regular rental properties. The city treats short-term rentals differently than traditional secondary suites, requiring additional licensing and compliance measures.

Short-Term Rental Licensing Requirements

Ottawa requires all short-term rentals (including Airbnb) to obtain a Short-Term Rental License through the city's licensing department. This applies whether you're renting your entire home or just a secondary suite. The license costs approximately $300 annually and requires renewal each year.

Your secondary suite must first meet all standard secondary dwelling unit requirements under Ottawa's zoning bylaws, including proper fire separation, separate entrance, minimum ceiling heights, and adequate parking. However, short-term rentals have additional requirements beyond standard secondary suites.

Key Compliance Requirements

The property must be your principal residence - you cannot operate multiple Airbnb properties throughout the city unless they're in your primary dwelling. For secondary suites, this means you must live in either the main house or the suite while renting out the other portion.

Safety requirements are more stringent for short-term rentals. You'll need smoke and carbon monoxide detectors in all sleeping areas, fire extinguishers, and emergency contact information posted prominently. The city may conduct inspections to verify compliance.

Zoning and Building Considerations

Your property must be in an area where short-term rentals are permitted - some residential zones have restrictions. The secondary suite itself must have been legally constructed with proper permits and meet Ontario Building Code requirements. If you're converting space into a suite specifically for Airbnb, you'll need building permits and inspections.

Fire separation between your living space and the rental suite becomes even more critical with short-term guests who aren't familiar with the property layout and emergency exits.

Insurance and Tax Implications

Standard homeowner's insurance typically doesn't cover short-term rental activities. You'll need to notify your insurer and likely purchase additional coverage. The income is also taxable, and you'll need to collect and remit HST if your rental income exceeds $30,000 annually.

Professional Guidance Recommended

Given the complexity of combining secondary suite regulations with short-term rental licensing, it's wise to consult with both the city's planning department (613-580-2424) and licensing department before proceeding. Many homeowners find the regulatory requirements more complex than initially expected.

For a properly designed and permitted secondary suite that meets both residential and short-term rental requirements, contact Justyn Rook Contracting for a free consultation on your project.