// london, ontario · income property

Income property in London, Ontario, without the hype

London attracts investors for understandable reasons: two large post-secondary institutions, a major hospital network, steady population growth and lower entry prices than the GTA. But rental property is a business, with real rules and real risks. This guide covers both the opportunity and the fine print.

House hackLive in one unit, rent the other

2–4 unitsDuplexes, triplexes, fourplexes

ARUsAdding units to a house

LicensingCity rental licences

Start here

House hackingThe most accessible way to start: own your home and let a tenant help pay for it. Duplexes & triplexesMulti-unit buildings, owner-occupied or not, and how financing differs. Additional residential unitsBasement suites, garden suites and what London permits. The numbersCash flow, cap rate and cash-on-cash return, with a worked example. Student rentalsNear Western and Fanshawe: demand, rules and wear and tear. Rental licensingLondon's residential rental unit licence: what's required. Short-term rentalsWhy Airbnb investing doesn't work in London the way it does elsewhere. Landlord basicsThe Residential Tenancies Act, leases, deposits and the LTB. FinancingDown payments, rental income and qualifying for a second property. Taxes for landlordsReporting rental income, deductions, CCA and selling.

Why investors look at London

Institutional demand anchors. Western University, Fanshawe College and London Health Sciences Centre bring a steady flow of students, staff and healthcare workers who need housing.
Population growth. London has been one of Ontario's faster-growing large cities, adding pressure on housing supply. Statistics Canada's population estimates track this.
Lower entry prices than the GTA, which can mean better rent-to-price ratios. Check current prices against current rents rather than assuming.
Supportive policy for adding units. The City permits additional residential units on many residential lots, and has been reviewing ways to expand permissions.

The risks people underplay

Regulation: London licenses small rental properties and restricts short-term rentals to principal residences. Non-compliance means fines.
Tenancy law: Ontario's Residential Tenancies Act is tenant-protective, and the Landlord and Tenant Board can take months to hear applications. Tenant selection matters enormously.
Rent control: most units first occupied before November 15, 2018 are subject to the annual guideline on increases for sitting tenants.
Interest rates: a property that cash-flows at one rate may not at renewal.
Maintenance and older housing stock: many London income properties are older homes with older systems. Budget accordingly.

The honest summary: London income property can work well, especially for owner-occupiers who house hack or add a legal unit. Buying purely for cash flow at today's prices and rates requires careful numbers and conservative assumptions. Run them on our numbers page before you fall in love with a listing.

Choosing a strategy

Strategy	Capital needed	Effort	Main risk
House hack (rent a unit or rooms)	Lower (owner-occupied financing)	Moderate; you live on-site	Privacy; tenant fit
Add an ARU to a home you own	Construction budget	High during the build	Cost overruns; permits
Buy a 2–4 unit building	Moderate to high	Moderate	Legal status; older systems
Buy a single rental house or condo	High (20% down)	Low to moderate	Thin cash flow; vacancy
Student rental	Moderate to high	High	Turnover; by-laws; wear

There's no single best choice. The right strategy depends on your capital, your appetite for management, and whether you want to live in the property. Many London investors start with a house hack, then keep the property as a full rental when they move on.

Know the neighbourhood, not just the property

Rents, tenant pools and rules vary across the city. A unit near Western University rents to a very different market than one near the industrial parks in the south end or a family home in the northwest. Before you buy, look at what's actually listed for rent nearby, how long listings stay up, and what the City's zoning allows on that specific lot.

A sensible first-investment path

Decide on a strategy: house hack, multi-unit, ARU, or a standalone rental.
Get financing clarity: what you qualify for, and how lenders will count rental income.
Learn the rules: licensing, zoning, fire and building code, and the RTA.
Underwrite conservatively: realistic rent, a vacancy allowance, maintenance and capital reserves.
Build your team: agent, lawyer, accountant, inspector, contractor, and possibly a property manager.

// your local agent

Run the numbers on real London listings

Investment math is only as good as its inputs: realistic rents, actual taxes, and what similar properties have really sold for. Rayna Elabed, a Sales Representative with CENTURY 21 First Canadian Corp., Brokerage in London, can help you find properties that fit your strategy, whether that's a house hack, a duplex, or a home with space for an additional unit, and pull the comparable sales you need to underwrite them.

Browse London listings with Rayna

Last reviewed October 30, 2026