Key Takeaways

• Know the law: Familiarize yourself with Ontario’s Residential Tenancies Act and Ottawa‑specific bylaws to avoid fines and legal issues.
• Prepare and maintain the property: Conduct thorough inspections, address maintenance needs fully, and present a clean, neutral‑styled home to attract quality tenants.
• Price and screen wisely: Set a competitive rent based on neighborhood comparisons, and use clear, non‑discriminatory criteria and thorough background checks to select reliable tenants.
• Maintain professionalism: Respond promptly to repair requests, keep detailed records, and consider a professional property manager to handle day‑to‑day operations and ensure compliance.

As the country’s capital, Ottawa attracts federal workers, students, professionals, newcomers, and families who seek quality housing in safe, well-connected neighbourhoods. This steady demand makes owning a rental property in Ottawa a strong investment opportunity. 

To succeed, however, landlords must understand Ontario’s rental laws, prepare their property thoroughly, price it correctly, screen tenants carefully, and maintain the home consistently.

Our E & S Property Management team is here to help! The steps below outline what Ottawa property owners should do before renting out their home, and how to manage the rental properly once a resident moves in.

Top 9 Tips for Successful Ottawa Rental Property Ownership

1. Learn Ontario’s Landlord-Tenant Laws

Before listing your home, it is essential to understand Ontario’s Residential Tenancies Act (RTA). This act regulates nearly every part of the landlord-tenant relationship, including leases, deposits, maintenance and repairs, health and safety standards, rent increases, evictions, and dispute resolution. 

Failing to comply with the act can lead to fines, orders from the Ontario Landlord and Tenant Board, or delays in handling tenant issues. 

For Ottawa-specific rentals, there are additional city bylaws to consider. Ottawa landlords are responsible for: 

• Initiating a maintenance plan for capital;
• Establishing a system for fielding tenant service requests;
• Maintaining a registry for tenant supports;
• Creating and distributing a document that includes the information a tenant requires during their lease period; and
• Developing a plan for pest management, should the situation arise.

Understanding all of these rules ensures you operate your Ottawa rental legally and confidently.

2. Prepare Your Ottawa Home for Rent

A well-prepared home attracts responsible tenants and reduces time on the market. Good preparation also sets a positive tone for the tenancy.

Start by conducting a full inspection of the property. Confirm that all major systems are in good working order, check plumbing for leaks, ensure appliances function properly, inspect the roof for wear, and test heating and ventilation systems. Ottawa winters can be harsh, so insulation, weather stripping, and furnace performance matter for both safety and comfort.

A clean, tidy home creates strong first impressions. Deep clean the kitchen, bathrooms, floors, and all living areas, consider repainting rooms in neutral colours, and replace outdated light fixtures or damaged hardware. These updates quickly improve the appearance of the home without major expense.

3. Decide Whether to Offer the Home Furnished or Unfurnished

Some landlords in Ottawa, especially near universities, government buildings, or Embassies, consider renting furnished units. Furnished rentals may attract short-term professionals or visiting diplomats, creating opportunities for higher rents.

However, furnished rentals often require more maintenance and come with higher turnover rates. Unfurnished rentals appeal more to long-term residents and families.

It’s up to you to choose the approach that aligns with your investment goals and target tenant profile.

4. Determine a Competitive Rental Price

Setting the right rental price helps attract qualified tenants while minimizing vacancy. Ottawa has diverse neighbourhoods, and rental rates vary widely between areas like Centretown, Sandy Hill, Barrhaven, Kanata, and Orleans.

Research comparable homes to understand what similar properties are renting for. Consider the home’s size, age, amenities, upgrades, condition, and proximity to transit, schools, and employment centers. Features like parking, in-unit laundry, and outdoor space can increase rental value.

Avoid overpricing (which leads to longer vacancies) and avoid underpricing (which can result in lost income). A well-researched rate strengthens your position on the market.

5. Create Clear Rental Criteria

To streamline the screening process, create written rental criteria that comply with Ontario’s human rights laws. These criteria may outline income requirements, employment verification, credit expectations, and rental history standards.

Providing applicants with your criteria promotes transparency and protects you from discrimination claims.

6. Screen Applicants Thoroughly

A responsible tenant keeps your investment secure, so strong screening is essential. Review each application carefully, checking for consistency and accuracy.

Verify the tenant’s income and employment to ensure they can reasonably afford the rent. Ask for previous landlord references to confirm rental behaviour and payment reliability. Perform credit checks to evaluate financial stability.

A consistent screening process helps you select a tenant who is likely to care for your home and pay rent on time.

7. Understand Your Maintenance Responsibilities

Ontario requires landlords to maintain the home in a good state of repair, regardless of the rental rate. Maintenance obligations include structural issues, major systems, plumbing, heating, and electrical concerns. Landlords must also respond to urgent repairs promptly, especially issues affecting safety or habitability.

In Ottawa’s climate, preventive maintenance matters. Seasonal tasks may include checking for drafts before winter, servicing the furnace, clearing gutters, managing snow and ice, and inspecting the property for weather-related damage.

Keeping detailed records of maintenance and repairs helps protect you if disputes arise, and they also provide a clear history of property care.

8. Communicate Professionally

Clear communication with tenants and vendors helps prevent misunderstandings and creates a positive rental experience for everyone involved. 

Respond to maintenance requests in a timely manner, keep written documentation of discussions or agreements, and follow proper notice procedures when entering the unit or scheduling inspections.

Professional communication also contributes to long-term tenant satisfaction, which reduces turnover rates.

9. Consider Using a Professional Property Management Company

Many landlords hire professional property management because renting out a home can be time-consuming and legally complex. A property manager streamlines the entire process and helps protect your investment.

After a tenant moves in, the manager handles daily operations such as maintenance requests, communication, repairs, inspections, lease enforcement, and financial management. They also understand Ontario rules for notices, rent increases, and evictions.

Working with a professional management company reduces stress and gives you confidence knowing your rental is being cared for by experts who understand what an Ottawa rental needs.

Final Thoughts

Renting out your house in Ottawa can be a financially rewarding decision when approached with preparation and awareness. Understanding Ontario’s rental laws, preparing your home, pricing it correctly, screening tenants properly, and managing tenant communications and requests with care all contribute to a successful rental experience.

Partnering with a professional Ottawa property management company like E & S Property Management can elevate every part of this process. Our expertise in full-service property management ensures your investment remains protected and profitable.

What to Know About Ottawa’s New Vacant-Unit Tax.

A new annual tax will be placed on all vacant property at the beginning of 2023, called the Vacant Unit Tax (VUT). Vacant properties will be subject to a tax of 1% of the property’s assessed value. In addition, all eligible residential property owners must complete an annual declaration notifying the City of their property's occupancy, even if the property is a principal residence.

If you own more than one property, you must submit a declaration for each. The City has sent preliminary notices to affected property owners to prepare for the declaration period. An additional reminder will be sent in January. This notice does not mean you will be billed. City staff estimate that around 330,000 residents will need to declare their vacancy status, three steps to ensure you understand your reporting and filing obligation.

Learn about the Vacant Unit Tax

The Vacant Unit Tax is a tax on residential units which are not principal residences and are vacant for more than six months. Meaning if the home is vacant in 2022, the tax will become payable in 2023. The Vacant Unit Tax will be added to the Final Tax bill, due in June. Every residential homeowner must declare to the city if their home is occupied or vacant to determine if the tax is payable. If one of these situations applies to your property. The Vacant Unit Tax will
not apply. Principal residence homeowner, Principal Residence Permitted occupant, Tenanted Property.

Prepare Information for the Declaration

During the declaration, you will be required to provide your name and contact information. Additional information may be needed for the declaration time or requested during an audit. A False property status or failure to provide information when requested may result in fines up to $10,000, in addition to paying the tax. Completing your declaration takes less than 5 minutes using your MyServiceOttawa account. Your MyServiceOttawa account is already
registered with your property tax bill.

Complete your declaration

All eligible property owners are required to submit a property status declaration starting in January 2023. Declarations open in January 2023 and must be completed by March 16, 2023. If no declaration is submitted, the property will be deemed vacant, and the Vacant Unit Tax will be applied.

For more information, visit www.ottawa.ca/VUT.

Wear and tear isn’t always an easy subject when we’re talking about your Ottawa rental property.

Before tenants vacate the unit, we do our pre-move out inspection to flag any potential excess wear and tear or damage that needs to be addressed with the outgoing tenant. This is the first step in the turnover process, when we prepare to rent the property. Normal wear and tear expenses must be covered by property owners, but how do you know where that ends and tenant damage begins?

It isn’t always easy, but we have a few tips on identifying wear and tear.

Identifying Normal Wear and Tear in an Ottawa Rental Property

Normal wear and tear is the natural deterioration that happens to a property whenever a tenant or the owner live in that property.

It’s the normal wear and tear that will happen to any home, no matter who is living in it.

For the purposes of a rental property, wear and tear will usually include:

• Small nail holes in the wall from where a tenant might have hung pictures, mirrors, or clocks
• Scuff marks on the walls or in the carpet from where furniture rested
• Worn carpet in high-traffic areas
• Paint that has faded due to sunlight or age
• Appliances needing repairs and replacements due to use and reaching the end of their expected life cycle

Owners are responsible for these costs because they go with the expenses that you plan on when you buy an investment home or rent out your principal residence.

We recommend that you budget for wear and tear items during turnover periods. Usually, the longer the tenancy, the lower the average cost of wear and tear. However, the expenses will come together by move out time. While the lease in place, savings equivalent to two months worth of rent will help you to cover standard items like minor repairs, cleaning and touch ups. The tenant’s last month rent deposit cannot be charged for these items.

When Wear and Tear Becomes Tenant Damage

Damage to property is different from wear and tear.

It’s damage that was caused willfully or from not being careful enough by the tenant or a tenant’s guest. Even if the damage is the result of a mistake or an accident, the tenant is still responsible to pay for it.

Maybe the tenant did not pay attention to a leaky faucet and did not request repairs on time and then while on vacation this caused a serious leak, or the tenant installed an unapproved plumbing fixture that caused damages. The cost to remediate this will be the responsibility of the tenants.

Damage repairs should be paid for by the tenant directly. To avoid any possible future claims – documentation of the damages is critical. Seasonal Inspections are important, especially inspections before the lease term begins and after the tenants move out.

Move-In and Move-Out Reports

In order to properly determine whether there’s real damage left behind at your property, we accurately document the home’s condition before a tenant moves in and after a tenant moves out. We always make sure to have pictures and/or videos to go with our descriptions and checklists. That way, if a tenant tries to claim that the door was hanging off its hinges when they moved in, we have evidence to the contrary.

The topic of wear and tear and damages is often an area of contention between owners and tenants.

Tenants tend to think that everything is wear and tear, and owners may see everything as damage. A detailed move in report and good communication with our residents will help us to avoid and manage any disagreements.

If you have any questions about wear and tear or anything pertaining to managing your Ottawa investment property, please contact us at E & S Property Management.