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Student rentals in London: what investors should know

Last reviewed October 30, 2026

With Western University and Fanshawe College both in the city, London has one of Ontario's largest student rental markets. Student rentals can produce strong gross rents, especially when rented by the room, but they come with specific rules, management demands and a reputation that neighbourhoods and the City take seriously.

Where student rentals cluster

• Around Western University: neighbourhoods north and west of downtown, including Broughdale, the areas off Richmond Street and Western Road, Sherwood Forest and parts of Masonville, plus downtown and Richmond Row for students who prefer nightlife over a short walk to class.
• Around Fanshawe College: the east end near the main campus on Oxford Street East, including neighbourhoods off Highbury Avenue and Fanshawe Park Road East, plus Fanshawe's downtown campus area.

The City has designated near-campus neighbourhoods in its planning policies, and these areas are subject to additional attention and rules intended to balance student housing with neighbourhood stability.

Rules to know

Rental licensing

London requires licences for many residential rental properties. See rental licensing. Operating without a required licence risks significant fines.

Bedroom limits

London's zoning by-law has historically limited the number of bedrooms per dwelling unit in many zones, a rule closely tied to student housing. The City has been reviewing these permissions. Check the current zoning for any specific property before you buy, and don't rely on a seller's claim that a house is a "six-bedroom".

Fire and building code

Bedrooms in basements need proper egress windows and smoke alarms. Converting dens or dining rooms to bedrooms can trigger code issues. Fire inspections are part of licensing, so budget for compliance.

Leasing models

Ontario's standard form of lease applies to most residential tenancies, and the Residential Tenancies Act applies to students like any other tenant. Fixed-term leases become month-to-month at the end of the term unless the tenant gives proper notice. You can't simply end a tenancy because the school year is over. See landlord basics.

The economics

• Higher gross rents, especially by the room, but also:
• Higher turnover: many leases start in May or September, with marketing and cleaning every year.
• Higher wear and tear: budget more for maintenance and furnishings if you furnish.
• Utilities: often included in by-the-room setups, which exposes you to usage costs.
• Seasonality: a summer vacancy if a lease isn't renewed or sublet.
• Management intensity: more calls, more neighbour concerns, more coordination. Many owners use a property manager who specializes in student housing.

Being a good neighbour

Student rentals work best long-term when owners take neighbourhood relations seriously: clear expectations about noise, garbage and parking in the lease; prompt response to complaints; snow clearing and yard maintenance. The City enforces property standards, noise and nuisance by-laws, and repeated issues can bring fines and attention to your property.

Due diligence on a student property

• Confirm the current licence and the permitted number of bedrooms.
• Review existing leases: start and end dates, rents, who's on each lease.
• Inspect for code issues: egress, alarms, fire separation, electrical capacity.
• Check walk times and bus routes to campus, since students compare them.
• Ask about the property's history of complaints or by-law issues.