Six weeks of vacancy on a $1,900/month unit costs you $2,850 in lost income. That loss takes over two years of a $100/month premium just to recover — yet this is exactly the trap landlords fall into when they guess at their rental price instead of checking the market.
Pricing your rental correctly is one of the highest-leverage decisions you'll make as a landlord. Too high and your unit sits vacant. Too low and you leave real money on the table every single month, compounding for the life of the tenancy. Under Ontario's Residential Tenancies Act, once a tenant is in place, your annual increases are capped by the provincial guideline — so the rate you set at move-in matters for years, not just months. A $100/month underpricing error on a tenant who stays four years costs you $4,800. Get it right once at the start.
Below is a current, practical breakdown of what the market supports across London, St. Thomas, and Strathroy in 2026 — by unit type, by neighbourhood, and by the specific features that push your number up or down. For broader provincial context, CMHC's rental housing data tracks vacancy rates and average rents across Ontario on a city-by-city basis.
London, Ontario 2026 Average Rents by Unit Type
London continues to attract renters priced out of Toronto and the GTA. Western University, Fanshawe College, and a growing healthcare and tech sector keep demand strong year-round — and with new purpose-built supply still lagging behind population growth, vacancy remains tight in most neighbourhoods. London's CMA population surpassed 550,000 in 2025, and rental demand from newcomers, students, and young professionals shows no sign of softening.
Average Rents by Unit Type — London, ON (Q1 2026)
| Unit Type | Low End | Average | High End |
|---|---|---|---|
| Bachelor/Studio | $1,050 | $1,175 | $1,350 |
| 1-Bedroom | $1,350 | $1,525 | $1,800 |
| 2-Bedroom | $1,650 | $1,900 | $2,300 |
| 3-Bedroom | $2,100 | $2,450 | $2,950 |
| 4-Bedroom | $2,600 | $3,000 | $3,600 |
These figures reflect market rents for vacant units — what a new tenant would pay today. They are not the same as rents being paid by long-term tenants, which are often significantly below market due to Ontario's annual guideline cap on increases. If you're re-renting a unit that's been tenanted for several years, your new market-rate listing may be substantially higher than what the previous tenant paid.
What London Neighbourhood Is Your Unit In?
Your unit type sets the range. Your neighbourhood and condition determine where within it you land.
- Old North / Wortley Village — Premium rents, professional and faculty tenant base, lower turnover. Expect the high end of each bracket. Units here routinely attract applicants with strong income-to-rent ratios.
- Byron / Lambeth — Family renters seeking good schools and quiet streets. Longer-term leases are common; slightly below the premium tier but vacancy rates are among the lowest in the city.
- Masonville / Medway — Strong demand from Western students, hospital staff, and young professionals. Competitive market with fast lease-up when priced correctly and listed with quality photos.
- East London / Hamilton Road — More affordable entry point, solid student and young professional demand. Expect the low-to-mid range of each bracket; turnover can be higher, so tenant screening is especially important here.
- Old East Village — Gentrifying area with growing creative and professional tenant interest. Rents rising faster than the city average; a well-renovated unit can push toward or above the midpoint.
If your property is within walking distance of Western, University Hospital, or Victoria Hospital, factor in premium demand from healthcare workers, residents, and students — these tenants often prioritize location over minor price differences.
For a deeper look at managing rentals across London's neighbourhoods, see our residential property management guide for London.
St. Thomas Rental Rates 2026: What Landlords Are Charging Now
St. Thomas is no longer flying under the radar. The Amazon fulfillment centre, the Volkswagen EV battery plant under construction, and a growing commuter base from London have pushed rents up steadily over the past two years — and investor interest has followed. The VW plant alone is expected to bring thousands of long-term salaried workers to the area, many of whom will be renters for at least the first few years.
Average Rents — St. Thomas, ON (Q1 2026)
| Unit Type | Average Rent |
|---|---|
| 1-Bedroom | $1,250 |
| 2-Bedroom | $1,550 |
| 3-Bedroom | $1,950 |
St. Thomas rents run roughly 15–20% below London — but purchase prices are often 25–30% lower, which translates into meaningfully better cap rates for investors. Tenant demand is currently outpacing new supply, and well-maintained units in good condition are leasing quickly. The arrival of large industrial employers has also shifted the tenant profile — more stable, salaried workers with longer rental horizons and lower delinquency risk.
For investors evaluating St. Thomas, see our St. Thomas property management overview for a closer look at local market dynamics and what professional management looks like in this market.
Strathroy Rental Rates 2026: A Steady, Low-Turnover Market
Strathroy is a different investment profile than London or St. Thomas — and that's a feature, not a bug. The tenant base skews toward petrochemical industry workers, retirees, and St. Clair College students. Turnover is lower, and quality tenants often stay for multiple years, reducing your vacancy and re-leasing costs significantly. For small landlords, that stability is worth a great deal.
Average Rents — Strathroy, ON (Q1 2026)
| Unit Type | Average Rent |
|---|---|
| 1-Bedroom | $1,100 |
| 2-Bedroom | $1,400 |
| 3-Bedroom | $1,750 |
The flip side: the pool of prospective tenants is smaller than in London or St. Thomas, so overpricing here is particularly costly — you may simply not generate enough applicants to be selective about who you place. Price to the market and you'll fill quickly with a tenant likely to stay two or three years. Price $100–$150 above market and you may sit vacant for months while comparable units lease around you.
See our Strathroy property management guide for more on managing rentals in this market, including typical tenant profiles and seasonal demand patterns.
How to Price Your Specific Unit: Features That Move Your Number
Averages give you the range. These factors determine exactly where within that range your unit belongs — and whether you can justify pushing toward the top.
8 Features That Justify Charging Higher Rent
- In-unit laundry — The single highest-value amenity in most tenant surveys. Adds $75–$150/month in perceived value, dramatically expands your applicant pool, and is increasingly expected by professional tenants in London.
- Dedicated parking — Particularly valuable in older London neighbourhoods where street parking is scarce and competitive. Even a single included spot can add $50–$100/month in effective value.
- Private outdoor space — A deck, yard, or balcony adds genuine value, especially since 2020 when tenants began prioritizing outdoor access more than ever before.
- Recently renovated kitchen or bathrooms — Updated finishes command real premiums. A $3,000–$5,000 kitchen refresh can add $100–$150/month, paying back within 2–4 years while also attracting higher-calibre applicants.
- Central air conditioning — Now effectively expected for any unit listing in summer across Southwestern Ontario. Absence of A/C has become a filter-out for many applicants rather than a minor inconvenience.
- Utilities included — If you include heat and water, you can typically add $150–$250/month to the headline rent, depending on unit size and your actual utility costs. Make sure you calculate your real utility expense before building it in — see our utilities guide for Ontario rentals for how to structure this properly.
- Pet-friendly policy — Opens your unit to a large and underserved segment of renters. Pet-owning tenants often stay longer because their options are limited. You can charge a modestly higher rent, and they tend to treat the property with care to protect their rental history. (Note: Ontario does not permit non-refundable pet deposits, but last month's rent deposit remains standard. See our pet policies guide for Ontario landlords for details.)
- Proximity to transit or major employers — Being within walking distance of a hospital, university, or express bus route adds value that doesn't show up in photos but matters significantly to applicants during their search.
Features That Require You to Price Lower
- No laundry in-unit or on-site
- Street parking only, with no guaranteed spot
- Older finishes and appliances showing significant wear
- Basement unit with limited natural light and ceiling height under 7 feet
- No air conditioning
- Shared utilities with no metering (unpredictable cost exposure for tenants)
- Poor cell service or no high-speed internet infrastructure (increasingly a dealbreaker for remote workers)
The Quickest Market Test Available to You
Post your listing at your target price and watch the first 72 hours carefully. In London:
- 10+ inquiries in 24 hours — You've underpriced. Consider adjusting upward before signing anything.
- 3–7 inquiries in 48–72 hours — You're in the right range. Proceed with screening.
- Fewer than 3 inquiries in 5–7 days — Price is almost certainly the issue, assuming good photos and a complete listing. Drop by $75–$100 and reassess.
- Zero inquiries in 5–7 days — Drop the price and revisit your listing quality. Photos and headline copy matter as much as price.
In Strathroy and St. Thomas, allow a slightly longer window — 5–10 days is normal before drawing firm conclusions.
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For more on getting your listing in front of the right applicants, see our rental property marketing guide.
The Vacancy Math: Why Overpricing Costs More Than Landlords Realize
This is the calculation most landlords skip — and it's the one that matters most.
Say you own a 2-bedroom in London worth $1,900/month at market. You list at $2,100, hoping to find the right tenant.
If the unit sits vacant for 6 weeks, you've lost $2,850 in rental income. At the $200/month premium you were hoping to capture, you'd need that tenant to stay for 14+ months just to break even on the vacancy period alone. Add lease-up costs, your own showing time, utility carrying costs on a vacant unit, and the wear from an extended empty period — and the math gets significantly worse.
The rule that actually works: Price to rent within 2–3 weeks. A well-priced, well-presented unit consistently outperforms an overpriced one — in total income over time, in tenant quality, and in the hours you spend managing the process.
And remember: once a tenant is in place in Ontario, your ability to increase rent is constrained by the provincial rent increase guideline. The rate you set today is the baseline you'll be working from for the entire duration of that tenancy. If you're renting out a property for the first time, see our first-time landlord tips for London, Ontario — getting the pricing and lease structure right from the start will save you significant money and stress.
For a step-by-step walkthrough of how to legally raise rent when the time comes, see our guide on how to increase rent in Ontario.
Frequently Asked Questions
Q: What is the average rent for a 2-bedroom apartment in London, Ontario in 2026? A: The average rent for a two-bedroom unit in London in Q1 2026 is approximately $1,900/month, with a range of $1,650 at the low end to $2,300 for premium units. Location, in-unit laundry, parking, and overall condition determine where your specific property lands within that range.
Q: How does St. Thomas compare to London for rental prices? A: St. Thomas rents run 15–20% below London. A two-bedroom in St. Thomas averages around $1,550/month versus $1,900 in London. Purchase prices are also typically lower — by 25–30% — which frequently translates into better cap rates for investors. Demand has been accelerating as major employers like Amazon and Volkswagen bring new workers to the area.
Q: How does Ontario's rent control guideline affect the price I set at move-in? A: Under the Residential Tenancies Act, annual rent increases for most existing tenants are capped at the provincial guideline (set each year by the Ontario government — see the current guideline at ontario.ca). Once your tenant is in place, you can only raise their rent by that guideline amount annually, with proper written notice. The rate you set at move-in becomes your baseline for the entire tenancy — which makes accurate initial pricing especially important.
Q: What is the most valuable amenity I can offer in a London, Ontario rental? A: In-unit laundry is consistently the highest-value amenity, adding approximately $75–$150/month in perceived value and significantly widening your applicant pool. Dedicated parking, private outdoor space, central air conditioning, and a recently renovated kitchen or bathroom also increase achievable rent. Being pet-friendly can meaningfully increase both your rental rate and tenant retention.
Q: How quickly should a well-priced unit get inquiries in London, Ontario? A: A well-priced, well-photographed unit in London should receive multiple inquiries within 48–72 hours and lease within 2–3 weeks. In St. Thomas and Strathroy, allow 5–10 days before drawing conclusions. If you're in London with zero inquiries after 5–7 days and your listing includes quality photos and a complete description, price is almost certainly the primary issue.
Q: Should I include utilities in the rent or charge separately? A: Including utilities can justify a $150–$250/month premium on the headline rent, which is appealing to tenants and makes your listing stand out. The risk is utility cost exposure if the tenant is not energy-conscious. If you go this route, calculate your actual 12-month utility average before building the number in — and consider whether a cap or separate metering makes more sense for your unit type. See our utilities guide for Ontario rentals for a fuller breakdown of your options.
Q: Is it better to price slightly below or slightly above market? A: Pricing at or slightly below market almost always produces a better financial outcome than holding out for a premium. A unit that rents in two weeks at $1,875 outperforms a unit priced at $1,975 that sits vacant for six weeks — by the time you account for the lost income, you'd need the higher-paying tenant to stay for over a year just to break even. Price to fill quickly with a qualified tenant, then manage the tenancy well so they stay long-term.
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Prospera Properties manages residential rentals across London, St. Thomas, and Strathroy. If you'd like to understand the full picture of what professional management covers — from pricing and tenant screening to rent collection and maintenance coordination — explore our London property management services or learn more about what a property manager costs in Ontario.