You find out your tenant has been listing your rental on Airbnb. Strangers coming and going every few days. Reviews mentioning your property's address. No mention of it in the lease.
This situation is more common than it used to be, and it raises real legal and practical concerns. Here's what Ontario law says, what cities like London are doing about short-term rentals, and what your options are as a landlord.
What the RTA Says About Subletting
Under the Residential Tenancies Act, a tenant can sublet their unit — but only with the landlord's written consent. The landlord cannot unreasonably withhold that consent, but "consent" is the operative word: the tenant has to ask.
Listing on Airbnb without asking is a subletting or unauthorized occupancy situation. It's a breach of the tenancy, and you can act on it.
There's also a distinction between subletting and "assignment." Subletting means the original tenant temporarily vacates and brings in someone else; assignment means transferring the tenancy entirely. Short-term Airbnb use is typically treated as subletting (or as unauthorized occupancy if the stays are very brief). Either way, doing it without consent is a problem for the tenant, not a right.
What "Unreasonably Withholding Consent" Means
The rule that you can't unreasonably withhold consent to sublet exists to stop landlords from blocking legitimate subletting — like a student who needs to sublet for the summer. It doesn't mean you must approve every subletting request.
Reasonable grounds to refuse short-term rental subletting include:
- The property is a condo with rules prohibiting short-term rentals
- The building has shared common areas where increased transient traffic is a concern
- You have evidence that frequent turnover will cause excessive wear
- The property isn't licensed for short-term rental use in the municipality
In practice, if you've prohibited short-term rentals in the lease and the tenant is already running one without permission, you're dealing with an unauthorized breach — not a consent request.
Municipal Rules: London, St. Thomas, and Sarnia
Provincial RTA rules are only part of the picture. Municipalities have their own short-term rental bylaws, and they're getting stricter.
City of London: London introduced a short-term rental licensing framework requiring operators to register with the city. The rules are aimed primarily at "principal residence" rentals — meaning the operator lives there. Investors renting out units they don't live in face stricter restrictions. If your tenant is running an unauthorized Airbnb, they're likely in violation of both your lease and the city's licensing requirements.
St. Thomas and Sarnia: Both cities have been developing short-term rental frameworks as the issue has grown across southwestern Ontario. Check with the city directly for the most current rules, as municipal bylaws change and enforcement varies.
The practical implication: an unauthorized Airbnb in your property could expose you to municipal complaints or bylaw violations even though you didn't authorize it. This is another reason to address unauthorized short-term rentals quickly.
How to Find Out If Your Property Is Listed
Search Airbnb and VRBO for your address or neighbourhood, and look for photos that match your unit's interior. Tenants sometimes obscure the address, but photos of distinctive features (a unique tile, a view, specific furniture) can confirm it's your property.
If you suspect it and can't confirm it, note any unusual patterns: frequent new faces, short stays, multiple guests coming and going, reviews on platforms. You can also do a legitimate inspection of the unit (with proper 24-hour notice) to document the current state of the property.
What to Do If You Find an Unauthorized Listing
Step 1: Document it. Screenshot the listing, note the URL, record the dates it was active, and capture any reviews. This is your evidence.
Step 2: Contact the tenant in writing. Let them know you're aware of the listing and that subletting without consent is a breach of the tenancy. Put it in writing (email is fine). Ask them to take the listing down immediately.
Step 3: Serve an N5 if they don't comply. An N5 Notice to End a Tenancy can be served for unauthorized subletting or assigning of the unit. The tenant has 7 days to correct the behaviour (take down the listing, stop the activity). If they do, the notice is void. If they don't, you can file an L2 application with the LTB.
Step 4: Consider the overall tenancy. A tenant who immediately cooperates when confronted is a different situation than one who continues the Airbnb after the N5. Use your judgment about whether this is a relationship you want to continue.
Protecting Yourself in the Lease
The most effective protection is a clear lease clause. Ontario's standard lease (Form LTL) doesn't automatically prohibit short-term rentals, so add a clause specifically addressing it.
A sample clause: "The tenant shall not list or advertise the rental unit on any short-term rental platform, including but not limited to Airbnb, VRBO, or similar services, without the prior written consent of the landlord. Unauthorized listing or use of the unit as a short-term rental constitutes a substantial breach of this tenancy agreement."
This doesn't give you more rights than the RTA would otherwise allow, but it removes any ambiguity and makes the tenant's obligations explicit from day one.
The Insurance Angle
Worth knowing: if guests at an unauthorized short-term rental damage your property or injure themselves, your landlord insurance policy may not cover it. Short-term rental activity is a different risk profile than a long-term tenancy, and insurers treat it differently. This is another reason to act quickly when you discover unauthorized STR activity.
The Bigger Picture
Short-term rentals are a permanent feature of the market now, and the legal and regulatory environment is still evolving. Some landlords in London and southwestern Ontario actively allow and even advertise short-term rental potential — but that requires the right property type, the right insurance, and compliance with municipal licensing.
For landlords who want standard long-term tenancies, the combination of a clear lease clause, proactive communication with tenants, and quick action if issues arise is the right approach. At Prospera Properties, we monitor this kind of activity as part of routine property management — because catching it early is far easier than dealing with it after months of unauthorized use.
If you're not sure whether your lease adequately addresses short-term rentals, it's worth reviewing it before the issue comes up.