If you rent out a property in London, Ontario, you need a rental unit licence. Not a nice-to-have. A legal requirement under the City of London's Rental Housing Licensing By-law.
Most landlords outside the city have never heard of it. Many landlords inside the city are operating without one right now, either because they didn't know it was required or because they assumed the provincial landlord-tenant rules were all they had to follow.
They're not. The City of London has its own layer of rental regulation that sits on top of Ontario's Residential Tenancies Act. This guide covers what the licence is, who needs it, how to get it, what inspectors look for, and what happens if you skip it.
What Is the City of London Rental Unit Licence?
The City of London's Rental Housing Licensing (RHL) program requires landlords to obtain a licence for every rental property they own within city limits. The program is administered under the Property Standards By-law and enforced by the city's Property Standards Officers.
The licence exists to ensure rental housing in London meets minimum property and safety standards. The city uses the licensing process to identify and bring substandard units into compliance — which means inspections, documentation, and ongoing renewal obligations for you as a landlord.
This is separate from — and in addition to — your obligations under the Ontario Residential Tenancies Act. The RTA governs the landlord-tenant relationship. The rental unit licence governs whether your property is legally fit to be rented at all.
Who Needs a Rental Unit Licence?
The short answer: if you rent out a residential unit in London, Ontario, you need a licence.
This includes:
- Single-family homes rented entirely to tenants
- Duplexes and triplexes (each unit requires its own licence)
- Basement apartments and secondary suites
- Rooming houses (subject to a separate licensing category)
- Units in multi-residential buildings
Exemptions are limited. Owner-occupied properties where the owner lives in one unit of a duplex or triplex may qualify for a modified licensing pathway, but you still need to register with the city. Do not assume your property is exempt — contact London's Property Standards department to confirm.
If you own multiple units across London, each property address requires its own licence. Managing four units at two different addresses means four licences, not one.
How to Apply for a City of London Rental Unit Licence
The application is filed through the City of London's online property services portal. Here's the process step by step:
1. Create an account on London's online services portal
Go to london.ca and navigate to the Rental Housing Licensing section. You'll need a City of London online services account to file an application.
2. Complete the licence application
You'll provide:
- Property address and unit count
- Your contact information as the owner or authorized agent
- Confirmation that the unit meets minimum property standards
3. Pay the licence fee
Licence fees are set by the city and updated periodically. As of 2026, fees are structured per unit — verify the current fee schedule at london.ca before applying, as rates can change. Budget for the fee as an operating cost and track it in your records (it's a deductible expense — see rental property tax deductions in Ontario).
4. Schedule a property standards inspection
New licence applications typically require an inspection by a City of London Property Standards Officer. The inspector will assess whether your unit meets the minimum standards set out under London's Property Standards By-law.
5. Address any deficiencies and receive your licence
If the inspection identifies deficiencies, you'll receive an Order to Comply specifying what must be fixed and by when. Once deficiencies are corrected and verified, your licence is issued.
What Inspectors Look For
A City of London property standards inspection is not a casual walk-through. Inspectors are trained to identify violations of London's Property Standards By-law, which establishes minimum standards for structural condition, heating, plumbing, electrical, and safety systems.
Key areas inspectors check:
Structural condition
- Foundation, walls, roof, floors must be structurally sound and free of significant deterioration
- Doors and windows must open, close, and lock properly
- Stairways and handrails must be secure
Heating and plumbing
- Units must be capable of maintaining a minimum indoor temperature (typically 20°C during heating season)
- Hot and cold running water must be provided
- Plumbing must be in good working order with no significant leaks
Electrical
- Electrical systems must be in good condition
- Adequate outlets and lighting must be present
Fire and life safety
- Smoke alarms are required on every storey and outside every sleeping area
- Carbon monoxide alarms are required where applicable (attached garages, gas appliances)
- Fire escape routes must be clear and functional
See the full breakdown of your fire safety obligations as an Ontario landlord.
Pest and maintenance
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- Properties must be free of active pest infestations
- Units must be maintained in a reasonable state of cleanliness and repair
Your general landlord maintenance responsibilities under Ontario law align closely with what London inspectors assess — but the city bylaw applies its own enforcement mechanism independent of the Landlord and Tenant Board.
Annual Renewal: What to Expect
The City of London rental unit licence is not a one-time application. It must be renewed annually.
Renewal notices are typically sent to the address on file with the city. If you've moved or changed your contact information and haven't updated it, you may miss the renewal notice and let your licence lapse without realizing it.
What renewal involves:
- Filing a renewal application through the city portal
- Paying the annual renewal fee
- Confirming that the unit continues to meet property standards
- Periodic re-inspection (the city may or may not require a full re-inspection at each renewal — this depends on the property's compliance history)
Keep a record of your renewal dates. Set a calendar reminder 60 days before your licence expires so you have time to complete the process without a gap in coverage. This is part of good landlord record-keeping practice.
What Happens If You Operate Without a Licence
Operating a rental unit in London without a valid licence is a violation of the city's Property Standards By-law. The consequences are real.
Fines and orders
Property Standards Officers can issue Orders to Comply and Municipal Infraction Notices. Fines for operating without a licence can reach into the thousands of dollars. Repeat violations compound the penalties.
Difficulty resolving tenant disputes
If a licensing violation comes to light during an LTB proceeding — for example, because a tenant files a T6 maintenance application — it can complicate your position at a hearing and affect how the adjudicator views your overall compliance.
Forced vacancy
In serious cases involving unlicensed or non-compliant properties, the city has authority to require that units be vacated until brought into compliance. An empty unit generates no rental income and still carries carrying costs.
No protection from the insurance perspective
If an insurance claim arises at a property you're renting out without the required municipal licence, your insurer may dispute coverage. Check your rental property insurance policy to understand how licensing status affects your coverage.
The licence is not a bureaucratic formality. Skipping it exposes you to municipal enforcement, LTB complications, and insurance risk simultaneously.
The City of London Licence vs. the Provincial RTA
A common point of confusion: some landlords think that following the Residential Tenancies Act is all they need to do. It isn't.
The RTA is provincial legislation. It governs the landlord-tenant relationship — rent increases, eviction procedures, entry rights, deposits, and the LTB process. It applies to all of Ontario.
The City of London rental unit licence is a municipal requirement. It governs whether your property meets London's local standards for habitability and safety. A property can be fully compliant with the RTA — meaning you're following the right procedures with your tenant — and still be unlicensed and non-compliant with the city bylaw.
Both apply. Compliance with one does not substitute for compliance with the other.
If You Own a Secondary Suite or Basement Apartment
Basement apartments and secondary suites in London face an additional layer of scrutiny. The city requires second units to be registered, and the registration process involves confirming that the unit meets second-unit-specific requirements including:
- Minimum ceiling height and room sizes
- Separate entrance requirements
- Fire separation between units
- Egress windows in sleeping areas
- Electrical metering (where applicable)
See the full requirements in our guide to legal basement apartment requirements in Ontario.
If your basement apartment was constructed without building permits or does not meet the current standards, you may need to undertake renovations before it can be licensed. Starting the licensing process early gives you time to identify and address issues before they become urgent.
Practical Steps to Get Compliant Now
If you own rental property in London and have not yet obtained a rental unit licence, here's where to start:
- Go to london.ca and navigate to the Rental Housing Licensing section
- Review the current fee schedule so you know the cost before you apply
- Walk through your unit before booking an inspection — check smoke alarms, CO detectors, door locks, plumbing, and visible electrical issues. Fix obvious deficiencies now rather than during the inspection
- Gather your property records — prior inspection reports, building permits for any renovations, maintenance logs
- Apply online and schedule your inspection
- Document everything — keep copies of your licence, inspection reports, and renewal confirmations in your property file
If your property has compliance issues, it's almost always better to identify and address them proactively than to have them flagged by a city inspector. Inspectors note what they find — and a pattern of violations affects your renewal history.
Managing the Licence Process Across Multiple Properties
If you own two, three, or more rental properties in London, tracking licences, renewal dates, inspection records, and compliance history across all of them becomes a genuine administrative task. Missing one renewal can create cascading problems — especially if you're dealing with a tenant issue at the same property at the same time.
This is one of the practical reasons first-time landlords in London and small portfolio landlords consider working with a local property management company. A property manager with London-specific experience handles municipal licensing compliance, keeps renewal dates on track, and coordinates inspection preparation — so you're not managing city bureaucracy on top of everything else.
If you're weighing whether that kind of support makes sense for your situation, Prospera Properties manages rental properties across London, St. Thomas, and Strathroy. We handle municipal licensing, property standards compliance, and tenant management for small landlords. Contact us to talk through what it would look like for your property.
Key Takeaways
- Every rental unit in London, Ontario requires a City of London rental unit licence
- New licences require a property standards inspection
- Licences must be renewed annually — set a reminder before your expiry date
- Operating without a licence risks fines, LTB complications, and insurance issues
- The licence is separate from your RTA obligations — both apply simultaneously
- Basement apartments face additional registration requirements on top of the base licence
- Proactive compliance is always cheaper than reactive enforcement
For the current fee schedule, application portal, and inspector contact information, visit the City of London's Rental Housing Licensing page at london.ca.