What is Considered Normal Wear and Tear for your Ottawa Rental Property?

Key Takeaways

• Ottawa offers unmatched economic stability, supported by the federal government and a thriving tech sector—making it one of the most secure rental markets in Canada.
• Strong rental demand and low vacancy rates ensure investors enjoy consistent occupancy from residents from various walks of life.
• Real estate remains relatively affordable compared to other major cities like Toronto or Vancouver, creating an accessible entry point for both new and seasoned investors.
• High quality of life and world-class amenities continue to attract newcomers and tourists, driving both long-term rental success and short-term rental opportunities.

Are you looking to invest in Ontario real estate? Why not consider Ottawa! As Canada’s capital, the city benefits from quality amenities, a stable workforce, primarily fuelled by a thriving tech industry and expanding healthcare and education sectors, and consistent housing demand. 

Ottawa’s rental market is known for its reliability, with low vacancy rates and a diverse pool of renters ranging from students and young professionals to families and long-term government employees.

Beyond its economic stability, Ottawa offers an exceptional quality of life that continues to attract new residents year after year. The city boasts excellent schools, abundant green spaces, first-class amenities, and plenty of friendly neighbourhoods. For investors seeking a stable but high-performing market, Ottawa stands out as a top choice.

Want to learn more? In this article by E&S Property Management, we’ll go over the top reasons to buy an investment property in this part of Ontario. You’ll learn about the major factors that make Ottawa such a ripe area for high-ROI investments.

Why Invest in Ottawa, ON, Rental Properties

Ottawa is a smart choice for rental property investors thanks to its stable economy, steady population growth, and strong demand for quality rentals. Below, we break down the top factors that make Ottawa such a great market to invest in. Let’s dive in!

1. Strong Local Economy

One factor that makes Ottawa such a good area to invest in is its strong, stable economy. As the nation’s capital, it shouldn’t come as a surprise to learn that Ottawa has one of the highest household incomes in the country, as well as an unemployment rate below the national average.

Ottawa’s stable economy is primarily fuelled by the Public Service of Canada and a thriving tech industry. The federal government is the city’s largest employer, with headquarters for many federal departments housed in the city. 

Moreover, major technology companies have headquarters or regional locations in Ottawa, including Corel, Nortel, Cognos, Shopify, Nokia, Adobe Systems, Bell Canada, and IBM. A strong local economy and stable job market create a favourable climate for real estate investors.

2. Booming Tourism

As Canada’s national capital, tourism is an important part of Ottawa’s economy. The local government estimates that over 9.8 million tourists visit Ottawa every year, and it’s no wonder why! You can find many first-class tourism hotspots in the city, from art galleries and museums to live music venues and world-renowned festivals. 

Its booming tourism industry means there is great potential for short-term rentals in Ottawa. Just think about it, not everyone wants to stay in a resort or hotel during their trip. Many tourists prefer to rent out an Airbnb or a vacation home, whether because they come in a big group or want more flexibility than a conventional hotel offers. 

By investing in a short-term rental in Ottawa, you can earn a steady passive income throughout the year, but also have a vacation home you can use whenever you want!

3. Population Growth

Ottawa is one of the top 5 most populous cities in Canada, with a population of over 1 million. From an investment point of view, population metrics are crucial. 

Steady population growth signals steady housing demand, making it easier for investors to secure long-term tenants and maintain consistent rental income. Ottawa’s strong population base and stable job market help keep vacancy rates low and make for a healthy rental market. 

4. Affordable Real Estate 

After all this talk about a booming economy, it may come as a surprise to learn that you can find great property deals available on the Ottawa market. According to WOWA.ca, the average price of a home in Ottawa is around $709,000. 

While this is slightly higher than the national average, property values in Ottawa are still far more affordable than in other major cities, like Toronto or Vancouver.

Luckily, there are plenty of options for investors, from single-family homes over the national average to townhouses and apartments at a much lower cost. This relative affordability, paired with Ottawa’s economic stability and growing population, makes the city an appealing and accessible market for long-term real estate investments.

5. World-Class Amenities

As a capital city, Ottawa provides its residents with exceptional healthcare facilities, top-tier educational institutions, efficient public transit, and plenty of parks, museums, and recreational spaces. 

These features create a comfortable, convenient lifestyle that attracts long-term renters, helping investors maintain consistent occupancy rates throughout the year.

In fact, Ottawa’s quality of life is internationally recognized. In 2024, Mercer ranked Ottawa 20th worldwide for its overall quality of life. This global reputation reinforces the city’s desirability and supports stable housing demand. For investors, high-quality amenities translate into a dependable, resilient rental market and strong long-term property value growth.

6. Landlord-Friendly Laws

Ottawa is generally considered a landlord-friendly city, especially when compared to other major Canadian cities like Toronto or Vancouver. Ontario has rent control guidelines that limit the maximum amount a landlord can increase the rent every year. 

This only applies to units created and occupied before 2018. Despite these regulations, landlords in Ottawa often face less pressure and have more control over their investment than investors in other comparable cities.

7. Hot Real Estate Market

Thanks to its affordable property prices, Ottawa offers a more approachable entry point for investors. This doesn’t mean that the market is slowing down or property values are depreciating. 

In fact, it’s quite the opposite. According to Remax, property values in Ottawa have increased 3% year-over-year across all property types. Steady appreciation means that your money will passively grow over time!

The Bottom Line

Ottawa offers a uniquely strong foundation for real estate investors thanks to its stable economy, high employment levels, and growing population. Millions of tourists visit this city and thousands of newcomers move in throughout the year. This creates a favourable environment for investors looking to invest in vacation homes, as well as commercial and residential rental properties.

If you want to purchase Ottawa real estate but aren’t sure where to start looking, contact E&S Property Management! Our team will help you find the perfect property for your short and long-term goals.