Income property FAQ

Often, yes. London's Residential Rental Unit Licensing by-law generally covers rental buildings with four or fewer units. Applications include a floor plan and self-certification checklist, and inspections are carried out with London Fire Prevention.

Generally not. London requires short-term rentals (stays under 30 days) to be licensed and located at the host's principal residence. Many condos also prohibit short-term stays.

In many cases, yes. The City permits additional residential units with detached, semi-detached and townhouse dwellings, including up to two additional units (one in the main building and one in an accessory building), subject to zoning, permits and code requirements. Confirm the current rules for your address.

London's zoning has historically limited the number of bedrooms per dwelling unit in many zones, which mainly affects student rentals. The City has been reviewing these rules, so check the current zoning for any property.

For a non-owner-occupied rental, generally 20%. If you live in one unit of a 1–2 unit property, standard insured-mortgage rules can apply (from 5%). Owner-occupied 3–4 unit properties have higher minimums.

Usually a portion of it, using either an add-back or offset method. Policies vary by lender, so a broker with rental experience can help.

For most units first occupied before November 15, 2018, annual increases for sitting tenants are capped at the provincial guideline. Units first occupied after that date are generally exempt. You can set a new rent between tenants.

No. In Ontario you can collect a rent deposit of up to one month's rent, applied to the last month, plus a refundable key deposit. Damage deposits aren't permitted.

No. Under the Residential Tenancies Act, a fixed-term lease typically continues month-to-month after the term ends unless the tenant gives proper notice, or the landlord has a legal ground and follows the LTB process.

Yes. Ontario landlords must pay tenants interest on a last month's rent deposit each year, at a rate equal to the rent increase guideline, or apply it to top up the deposit.

Wait times vary and have been long in recent years. Good tenant screening and clear documentation are your best protection against needing the LTB at all.

London has strong demand drivers, including two post-secondary institutions, a major hospital network and population growth, plus lower prices than the GTA. Whether a specific property is a good investment depends on the price, rent, expenses, financing and rules. Run the numbers conservatively.

For many people, house hacking: buying a home with a legal second unit (or rentable rooms), living in part of it, and renting the rest. It uses owner-occupied financing and lets you learn landlording on-site.

They can produce strong gross rents, especially by the room, but they come with higher turnover, wear and tear, management time and regulatory attention. Confirm licensing and bedroom permissions before you buy.