Tips for First-Time Landlords in London, Ontario

Becoming a landlord for the first time is exciting — and a little overwhelming. You've got a property, you've found (or are looking for) a tenant, and suddenly you're realizing there's a lot more to this than collecting rent. The good news: most of what trips up new landlords is avoidable with a bit of preparation. Here's what you actually need to know before you get started in London, St. Thomas, or Sarnia.

Understand the Landscape Before You List

Southwestern Ontario's rental market has its own dynamics. London, as a university city with Western and Fanshawe, has a strong demand for student rentals and young professional housing. St. Thomas and Sarnia tend to attract longer-term tenants — families, trades workers, and people employed in manufacturing and healthcare.

Knowing your likely tenant pool helps you set the right rent, choose the right lease term, and market the property in the right places. A basement unit near Fanshawe is a different product than a three-bedroom house in Port Stanley.

Know the Rules Before You Need Them

Ontario's Residential Tenancies Act governs almost every aspect of the landlord-tenant relationship. You don't need to memorize all 260+ sections, but you should have a working understanding of:

• Notice requirements for entry (24 hours written notice for most visits)
• The eviction process — you cannot simply ask someone to leave
• Rent increase rules — once per year, within the annual guideline
• What you can and cannot include in a lease

Ignorance of the law is not a defense at the Landlord and Tenant Board. New landlords who don't know the rules often make mistakes that cost them months of time and thousands of dollars to fix.

Treat It Like a Business From Day One

Even if you're only renting out one unit, act like a landlord, not a favor-doer.

Open a separate bank account for rental income and expenses. This makes bookkeeping far easier and keeps your personal finances clean.

Keep records of everything: signed lease, move-in inspection report, rent receipts, maintenance requests, correspondence with tenants, invoices from tradespeople. If you ever end up at the LTB, these records are the difference between winning and losing. See our guide on landlord record keeping in Ontario for a full system.

Issue rent receipts — landlords in Ontario are legally required to provide a receipt within 21 days if a tenant requests one. Just get into the habit of sending them monthly.

Screen Tenants Carefully — and Legally

Your choice of tenant is the single most important decision you'll make as a landlord. A great tenant makes ownership easy. A problematic one can cost you thousands and months of stress.

Run a credit check (with the applicant's written consent), verify employment and income (aim for gross income around 3x the monthly rent), check rental history by calling previous landlords directly, and use your judgment in a brief in-person conversation.

What you cannot do: discriminate based on race, religion, family status, gender, age, disability, sexual orientation, or receipt of public assistance (including Ontario Works or ODSP) under the Ontario Human Rights Code. Refusing to rent to someone on OW or ODSP is a human rights violation and can result in a complaint against you.

Use the Ontario Standard Lease

Since 2018, most residential landlords in Ontario are required to use the government's Standard Lease. Download the current version from the Ontario Standard Lease guide. Fill it out carefully, include any additional terms in the designated section (and make sure they comply with the RTA), and give the tenant a copy within 21 days.

One section many new landlords overlook: services and utilities. Be explicit about what's included. If the tenant is paying hydro, make sure that's clearly stated. Ambiguity here leads to disputes.

Do a Thorough Move-In Inspection

Walk through the unit with your new tenant before they move in. Document everything — every scuff, every stain, every ding in the drywall. Take photos and video. Both of you should sign the condition report.

This report is your protection when they move out. Without it, a tenant can claim that any existing damage was there before they moved in, and it's your word against theirs.

Set Clear Communication Expectations Early

Let tenants know how to reach you, what to do in an emergency, and what your expected response time is for routine maintenance. A simple welcome message that covers these basics sets a professional tone and reduces confusion later.

Most landlord-tenant conflicts start not from bad intentions but from unclear expectations. The more you communicate upfront, the less you have to manage later.

Budget for the Real Costs of Ownership

New landlords often underestimate ongoing costs. A rough rule of thumb: budget 10–15% of annual rental income for maintenance and repairs. This varies widely depending on the age and condition of the property.

Also budget for:

• Vacancy periods (even a great property sits empty sometimes)
• Property tax
• Landlord insurance (standard home insurance usually doesn't cover rental properties — get a dedicated landlord policy)
• The LTB filing fee if you ever need to use it ($201 for most applications)

If your rental income only barely covers the mortgage at 100% occupancy, the property may not be cash-flow positive once you account for real expenses.

Know When to Ask for Help

You don't have to figure it out alone. There are good resources available:

• The Landlord and Tenant Board website has plain-language guides on most common situations
• Community Legal Education Ontario (CLEO) publishes free guides on Ontario tenancy law
• Local landlord associations in London offer resources and community support

And if you're managing more than one property, or finding the administrative side genuinely stressful, professional property management is worth considering. Prospera Properties works with landlords across London, St. Thomas, and Sarnia — handling everything from tenant placement to maintenance coordination to LTB applications. For some landlords, handing off the day-to-day is worth every penny.

Frequently Asked Questions

Do I need to use the Ontario Standard Lease for my first rental?

Yes. Since 2018, most private residential landlords in Ontario are required to use the government's Standard Form of Lease. If a tenant requests a copy and you don't provide one within 21 days, they can legally withhold one month's rent. Download the current version from the Ontario government website and fill it out carefully before the tenant signs.

Can I refuse to rent to someone on Ontario Works or ODSP?

No. Under the Ontario Human Rights Code, refusing to rent to someone because they receive social assistance — including Ontario Works or ODSP — is discrimination based on source of income, which is a protected ground. You can screen applicants for income sufficiency and rental history, but you cannot refuse based on the source of that income.

How much should a first-time landlord in London charge for rent?

Pricing depends on unit type, location, and what's included. As of 2026, a one-bedroom in London averages around $1,525/month, two-bedrooms around $1,900/month, and three-bedrooms around $2,450/month. Factors like in-unit laundry, parking, and recent renovations can push rents higher. The best test is how quickly you get inquiries after listing.

What's the minimum notice a landlord must give before entering a rental unit in Ontario?

For most entry situations — repairs, inspections, showings — you must give your tenant at least 24 hours written notice, stating the reason, date, and a time between 8 a.m. and 8 p.m. Emergency situations are the main exception; you can enter immediately if there is a genuine risk to the property or the tenant's safety.

How do I handle it if my first tenant stops paying rent?

Serve an N4 (Notice to End a Tenancy for Non-payment of Rent) as soon as rent is past due — the notice gives the tenant 14 days to pay in full. If they don't pay and don't vacate, file an L1 application with the Landlord and Tenant Board. Do not accept partial payment after serving the N4, as this voids the notice. The full process typically takes 3–5 months.

One Last Thing

Landlording can be genuinely rewarding. A well-maintained property with a good tenant is as close to passive income as real estate gets. The landlords who struggle are usually the ones who cut corners on screening, skip the paperwork, or treat the first sign of conflict as something to ignore. Put in the effort upfront, follow the rules, and most of it runs smoothly.

Good luck with your first rental.