// short-term rentals

Short-term rentals in London: what's allowed

Last reviewed October 30, 2026

If you've read about buying a property to run as an Airbnb, slow down before you apply that idea to London. The City regulates short-term rentals closely, and its rules are built specifically to prevent investor-owned "ghost hotels". Here's what the rules mean in practice.

The principal residence rule

London licenses short-term accommodations (STAs), meaning stays of less than 30 consecutive days. The central rule is that a short-term rental must be located at the host's principal residence, where they actually live. You can rent out your own home, or part of it, short-term with a licence. You generally cannot buy a separate property to operate full-time as a short-term rental.

Licensing

• Hosts need a Short-Term Accommodation licence from the City.
• Licences are held by individuals for their declared residence, and must be renewed.
• The City has added requirements over time, including property standards and fire safety inspections, and, according to the City, from October 1, 2026 a provider is limited to one short-term accommodation and one provider licence (until September 30, 2026, up to two at the same address were allowed).
• Platforms may be required to display licence numbers, and the City has run enforcement blitzes against unlicensed listings.

Fees, inspection requirements and limits change. Read the City's current short-term accommodation by-law and guidance on london.ca before listing.

Condos and short-term rentals

Even where the City would allow a short-term rental at your principal residence, a condo corporation may prohibit it. Many condo declarations or rules set minimum rental periods that effectively ban short-term stays. Check the documents before you buy. Our sister site London Ontario Condos explains how condo rules work.

"Rental arbitrage"

Some online courses promote renting apartments and re-listing them short-term. In London, that typically runs into the principal-residence requirement, and it usually breaches the lease too. Ontario landlords can apply to end tenancies for unauthorized subletting or illegal acts. It's a strategy that tends to end in fines and evictions rather than income.

What does work

Hosting in your own home

If you live in London, licensing your principal residence lets you earn income from a spare room, or from your whole home while you're away, within the City's rules.

Medium-term rentals

Stays of 30 days or longer aren't short-term accommodations under the City's definition. Furnished medium-term rentals serve travelling healthcare workers, people relocating, insurance placements and visiting academics, a natural market in a hospital and university city. But be careful: these are generally residential tenancies under the Residential Tenancies Act, with tenant protections, unless a specific exemption applies. Get legal advice before structuring them.

Long-term rentals

For most investors, conventional long-term rentals, house hacks and additional units are the practical paths in London. See house hacking and ARUs.

Taxes on short-term rental income

Short-term rental income is taxable and must be reported. Depending on your circumstances, it may also have GST/HST implications, since short-term accommodation can be a taxable supply once you pass the small supplier threshold. Renting part of your principal residence can also affect the principal residence exemption when you sell. Talk to an accountant before you start. See taxes for landlords.

Before you host: checklist

• Confirm the property is your principal residence under the City's definition.
• Check your condo documents or lease for restrictions.
• Apply for the City licence and complete any required inspections.
• Tell your insurer. Standard home policies may not cover paying guests.
• Install and test smoke and CO alarms, and post emergency exit information.
• Set house rules on noise, parking and garbage to keep neighbours onside.
• Track income and expenses for tax purposes.