The dream is tempting: buy a stylish condo in downtown Ottawa, throw it up on Airbnb, and let short-term guests cover the mortgage while you build equity.
But here’s the truth in 2025: if you don’t live in the unit full-time, you probably can’t rent it out on Airbnb — legally or practically. Between city bylaws and strict condo rules, most downtown investors are finding out the hard way that short-term rental income isn’t part of the equation.
Here’s what you need to know before you buy — and what smart buyers are doing instead.
Short-Term Rental Rules in Ottawa (2025 Edition)
In Ottawa, short-term rentals (like Airbnb or Vrbo) are only allowed in your primary residence. That means the unit you actually live in, full-time — not a second property or an investment unit. If you don't receive mail there, file taxes there, and live there the majority of the time, it doesn’t qualify.
Even if it is your primary residence, you still need a valid short-term rental permit from the City of Ottawa. This comes with specific rules about insurance, safety, and taxes — and most importantly, it doesn’t override condo board restrictions.
Most Downtown Condo Buildings Don’t Allow It
Even if a unit qualifies under the city’s rules, most condo corporations in Centretown, the ByWard Market, Hintonburg, and Little Italy have banned short-term rentals entirely. That’s their right — and it’s legally enforceable under Ontario condo law.
The logic is simple: high Airbnb turnover can increase noise complaints, wear and tear on shared spaces, and security concerns. It also makes the building feel less like a home and more like a hotel. Many condo boards have responded by updating their declarations to prohibit short-term stays altogether.
Even buildings that once permitted it have changed course in recent years.
What Happens If You Try Anyway?
If you rent out a unit without city approval or in violation of condo rules, you risk:
Fines from the city
Legal action from the condo board
Insurance issues (your policy may not cover damages or liability from unauthorized rentals)
Permit revocation, if you’re found to be in violation
It’s also worth noting that city staff now actively monitor short-term rental platforms to identify illegal listings — and neighbours are quick to report what they see.
So... What Are Investors Doing Instead?
Short-term rentals may be off the table, but Ottawa condos are still a solid long-term investment — especially with a strong rental market and low vacancy rates.
Here’s how smart investors are adjusting:
1. Renting long-term (12-month leases or more):
Many investors are shifting to long-term tenants — often professionals, students, or couples who want the downtown lifestyle. Buildings near uOttawa, Tunney’s Pasture, and LRT stations tend to rent quickly.
2. Offering 30+ day furnished rentals:
The city’s short-term rental rules only apply to stays under 30 days. Some owners are now targeting mid-term renters — like contract workers, diplomats, or relocating families — with fully furnished, 1–3 month leases. These are legal and in demand, especially in centrally located units.
3. Choosing buildings with high owner occupancy:
Investor-heavy buildings can struggle with resale value, building upkeep, and tenant stability. Many buyers now prefer buildings with a higher percentage of owner-occupants, knowing it often means better board decisions, quieter hallways, and more pride of ownership.
4. Focusing on appreciation and lifestyle:
Instead of counting on monthly cash flow, some buyers are playing the long game — choosing units in growing neighbourhoods like Little Italy or the future Lebreton Flats development zone, where infrastructure improvements could drive long-term value.
Final Word
If your condo investment strategy relies on Airbnb, you’ll want to rethink it before signing on the dotted line.
The good news? Ottawa’s condo market still offers excellent long-term opportunities — as long as you’re clear on the rules and have a plan that works.
If you’re looking for a unit that will rent well, hold its value, and fit within the city's bylaws and the building’s rules, I can help you find it.
Let’s talk about your next move.