Last Updated

August 20, 2025

5 Minutes

Ottawa, Canada is Cracking Down on Short-Term Rentals with New Enforcement Tools

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Written by

Abimbola Tara Omotere

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Ottawa is stepping up its short-term rental (STR) enforcement game in a way that will change how both new and veteran hosts operate. The city has just issued a request for proposals (RFP) to build a digital surveillance tool designed to scrape Airbnb, Vrbo, and other vacation rental platforms.

This isn’t just about flagging illegal operators, it’s about creating a real-time monitoring system that pulls listing data, verifies permit numbers, tracks guest capacity, and even saves screenshots of nightly rates. For STR hosts in Ottawa, this marks the beginning of a new era: one where compliance will be under the microscope like never before.

Digital Scraping and New Enforcement Officers

When Ottawa first passed its STR bylaw in spring 2021, the goal was straightforward, allow rentals only from principal residences or approved rural cottages with strict guest limits (a maximum of 10). However, enforcing these rules was a challenge. Relying on neighbor complaints and occasional inspections wasn’t enough to address the growing STR market.

Now, enforcement is going digital and on-site at the same time.

1. The digital side: Ottawa wants to contract a tech partner that will create a comprehensive data dashboard. This system will track:

  • Permit numbers: every STR listing will need to display a valid permit number. The tool can instantly flag listings that don’t comply.
  • Availability calendars: enforcement staff can monitor if listings are live year-round, which may conflict with local rules limiting frequency.
  • Pricing trends: screenshots of rates can help identify professional operators running de facto hotels instead of small-scale rentals.
  • Listing activity: changes in capacity, address details, or duplicate listings can all be caught in real time.

2. The staffing side: Ottawa is also hiring six new full-time enforcement officers. These officers will combine the intelligence from the dashboard with in-person inspections. They’ll conduct surprise checks, follow up on complaints, and investigate suspected “ghost hotels” as units advertised as STRs but not used as principal residences.

Urban planning expert David Wachsmuth put it plainly: “Cities like Los Angeles and Boston already use these tools. Ottawa wants the same edge, because complaint-driven enforcement simply isn’t enough anymore.”

This combination of technology and manpower represents a massive shift in enforcement capacity, signaling that Ottawa intends to make short-term rental compliance a top priority.

Two-Way Enforcement: Legal and Illegal Hosts in Focus

Ottawa’s new approach is designed to catch both types of hosts; those with valid permits and those hosting illegally.

Hosts with valid permits: Having a permit won’t be enough anymore. The city will track how your property is being used in practice.ven compliant hosts should be ready for questions about whether their STR activity aligns with the spirit of the bylaw, not just the letter.

  • Are you hosting more than the maximum 10 guests?
  • Are you raising nightly rates in a way that suggests commercial operation?
  • Does your listing activity suggest that you’re running multiple units, despite rules limiting rentals to one principal residence?
  • Is your property truly being used as a residence, or is it functioning as a full-time “ghost hotel”?

Hosts without permits: For unlicensed operators, the game is essentially over. The digital tool will be able to flag non-compliant listings instantly the moment they appear on Airbnb, Vrbo, or any other platform. Instead of waiting weeks for complaints, enforcement officers can start investigating within days. This means higher odds of fines, takedowns, or even court action against non-permitted rentals.

In short, both compliant and non-compliant operators will be watched more closely than ever before.

Compliance Gaps to Watch

Even with Ottawa’s aggressive move toward digital enforcement, some gaps and uncertainties remain that hosts should monitor carefully.

  • Zoning still under appeal
    One of the biggest areas of contention is the zoning rules for STRs. Currently, rural cottages are allowed while stricter restrictions apply to urban neighborhoods. But these restrictions are being challenged in court. If appeals succeed, the balance between what’s allowed in rural vs. urban areas could shift dramatically. Hosts should follow updates closely, as zoning decisions may directly affect whether their property remains legal.
  • Underground market risk
    Whenever rules get stricter, there’s always the risk that some hosts will try to go underground. That might mean avoiding permits altogether or quietly listing properties on lesser-known platforms and private groups. However, Ottawa’s investment in scraping technology makes this riskier than ever. “Shadow” listings could now be detected faster, and the penalties for getting caught may outweigh any short-term gains.

A Detailed Breakdown of Ottawa STR Rules

For hosts in Ottawa, here’s what the bylaw already requires, and what the new monitoring system will make more visible than ever:

  • Registration: Every STR operator must obtain a valid permit before advertising on Airbnb, Vrbo, or similar platforms. Without it, your listing is illegal.
  • Residency: STRs are only permitted in a principal residence (the place you actually live most of the year) or in an approved rural cottage. This prevents large-scale investors from scooping up urban housing stock and running it as STR hotels.
  • Capacity: Rentals are capped at 10 guests maximum. This limit applies regardless of property size.
  • Advertising rules: Every listing must include your permit number. Missing or fake permit numbers are a red flag for enforcement.
  • Safety inspections: Properties may be required to provide proof of fire safety measures such as smoke detectors, fire extinguishers, and carbon monoxide alarms. Expect in-person inspections to verify compliance.
  • Tax compliance: Hosts must show proof of tax remittance, which ensures Ottawa captures revenue from STR activity.
  • Noise and guest conduct: Hosts are responsible for ensuring guests comply with local noise bylaws and general community standards. Complaints can affect your standing, even if you’re otherwise compliant.

These requirements have always been in place since 2021, but with the new digital tool, enforcement will be faster, broader, and more difficult to evade.

Action Steps for Ottawa Hosts

With enforcement about to get much stricter, hosts should take proactive steps now.

  • Check zoning and registration: Confirm that your property falls within approved zones and that your permit is valid. If you’re unsure, contact the city before listing.
  • Update your listings: Make sure your permit number is included on every listing. Double-check that property descriptions, guest limits, and other details match Ottawa’s bylaw.
  • Prepare for safety inspections: Ensure that smoke detectors, fire extinguishers, and carbon monoxide detectors are installed and functioning. Keeping documentation on hand will help during inspections.
  • Keep guest records: Maintain accurate records of guest stays, including names and dates. This will make it easier to demonstrate compliance if challenged.
  • Monitor zoning appeals: Stay informed about court rulings on STR zoning. These could affect whether your property is eligible for continued rental.

Being proactive now could save you significant fines and prevent forced removal from platforms later.

The Bigger Picture for STR Owners

Ottawa’s crackdown doesn’t exist in a vacuum. Cities like Toronto, Los Angeles, Boston, and New York have already invested in similar digital surveillance tools. This is part of a global trend: STR enforcement is becoming smarter, faster, and more centralized.

Here’s what hosts should think about long-term:

  • Platform diversification: Relying solely on Airbnb or Vrbo makes you highly visible to regulators. Some hosts are building direct booking websites or using smaller niche platforms to reduce exposure.
  • Investment strategy: With short-term rental rules trending stricter across Canada, hosts should re-evaluate whether short-term rentals remain a sustainable income source, or whether a pivot to medium-term or long-term rentals makes more sense.
  • Early compliance advantage: Hosts who adapt quickly gain an advantage. Not only do they avoid fines, but they also maintain trust with both regulators and guests. Early compliance may also position you for success if Ottawa introduces future incentives for “good actor” hosts.

Ottawa’s move toward digital surveillance of short-term rentals is a game-changer. It signals a future where STR compliance will be monitored in real time, with fewer chances to slip through the cracks.

For hosts, the message is clear, get compliant, stay compliant, and keep informed. Need help ensuring your listing is legal in Ottawa? You can access our Ottawa STR Compliance Checklist by contacting Lodge Compliance. Don’t wait until enforcement knocks, stay one step ahead.

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