December 31, 2025

A great way to earn additional income is to rent out your basement. However, before that can happen, you will need to ensure that the space is compliant with city regulations and building codes.

In this article, we will discuss what makes a basement apartment legal in Ontario and, specifically, Ottawa, outlining different regulations that will need to be followed and the permits that are required. We will also provide you with examples of common code violations to help you avoid them as you move forward with the process of having a legal basement.

Key Takeaways

  • Check if zoning laws in your area allow for legal basements
  • Ensure that your basement complies with building code requirements and city regulations, particularly in relation to ceiling height, egress windows, fire safety, insulation, and ventilation
  • Obtain the required permits including a building permit, occupancy permit, and rental license
  • Avoid common code violations like neglecting fire safety and overlooking waterproofing

City of Ottawa Regulations

Zoning laws in Ottawa dictate where it is permissible to have a legal rental unit. Before moving forward with renting out your basement, it is important to first confirm if the zone where your property resides is allowed to have a secondary suite. This can be done by contacting Ottawa’s zoning office or looking up the city’s zoning map online.

Your legal basement must also comply with the Ontario Building Code along with other requirements specific to Ottawa. These requirements include:

legal basement rental regulations

Permit Application Process

permits for a legal basement apartment in Ottawa

There are three types of permits you will need to obtain for a legal basement apartment in Ottawa:

  • Building Permit — If you are constructing a new basement or doing major renovations, a building permit is required.
  • Occupancy Permit — This shows that your basement is safe for people to live in and meets residential standards.
  • Rental License — A rental license is not mandatory for all types of rentals, so it is recommended to check municipal guidelines to see if you need one or not.

Applying for permits in Ottawa is now done through the online portal My Service Ottawa. After submitting your application, you will need to pay a fee, which, for a building permit, is calculated based on the scope of construction. Once your application is reviewed and approved, the permit will be issued to you and made available through the portal.

If you are doing renovations, inspections will need to take place at every stage of construction. Once renovations are complete, a final inspection occurs in which your occupancy permit will be issued to you if everything meets building code regulations and city health and safety standards.

Additionally, there are certificates that you as a landlord need that will verify the basement’s legal status as a rental unit, and are documents your tenants may ask for to have proof of that. These certificates are:

  • ESA Certificate — This shows that your electrical systems comply with safety standards and meet the approval of the Electrical Safety Authority.
  • Fire Certificate — This shows that the basement meets all fire safety requirements and is approved by the Fire Authority.
  • Certificate of Compliance — This proves your registration of the basement as a rental unit and that the space is in compliance with city regulations.
certificated for legal basement status

Common Code Violations to Avoid

There are some common mistakes that many people make with their legal basements, which ultimately result in code violations, meaning that the basement will not be allowed to be rented out to tenants. These mistakes to avoid include:

finished legal basements

Final Thoughts

Overall, it is important to make sure that your space meets all legal basement requirements in Ontario before you start renting it out. This includes aspects such as ceiling height, egress windows, fire safety, ventilation, waterproofing, and plumbing and electrical, as well as obtaining the proper permits.
At Capital Basement Renovation, our expert team of professionals can help you renovate your basement, turning it into a legal unit that can be rented. Contact us today for more information and to receive a free quote of our services!