How to Price Your Rental Property in London, Ontario

Pricing a rental unit is one of the decisions that most affects your return — and most landlords make it by checking a few listings on Kijiji and picking a number that feels right. That works sometimes. It also leaves money on the table, or leaves your unit vacant for weeks, both of which cost you.

Here's a methodology for pricing rental units in London, St. Thomas, and Strathroy that accounts for comps, condition adjustments, vacancy cost math, and the seasonal demand patterns that matter in southwestern Ontario.

Step 1: Build Your Comparable Set

The foundation of any pricing decision is knowing what comparable units are actually renting for. Not listed for — renting for. There's a gap.

Where to Find Comp Data

Active listings — Kijiji, Rentals.ca, Facebook Marketplace, and Zumper all have London-area listings. These show ask prices, not final rents, and landlords often list higher than they'll accept. Still useful as a ceiling.

Rental listing history — Rentals.ca and Padmapper keep historical listings that show how long units sat before going offline. A unit listed for $2,100 that disappeared in 3 days rented at or near ask. One that sat for 6 weeks probably rented below ask.

Your property manager — if you're working with a management company active in the London market, they see actual signed leases, not just listings. This is the most accurate comp data available to small landlords.

Conversations with other landlords — local landlord networks, the London Property Management Association, and community Facebook groups are informal but often useful. Landlords talk about what they're getting, especially for similar unit types.

What Makes a Valid Comp

A comparable unit should share:

• Same geographic area — Old East Village, Byron, White Oaks, and Old North have meaningfully different demand. A comp from a different London neighbourhood may not apply.
• Same unit type — bedrooms and bathrooms. A 2+1 is not the same as a true 3-bedroom.
• Similar included utilities — a $1,800 unit all-inclusive is a different product than a $1,800 unit plus hydro and gas.
• Similar property type — a basement apartment competes with other basement apartments, not with above-grade units in the same price range.

Aim for 5-8 valid comps before making a decision. If you can only find 2-3, your market segment is thin and you should weight your analysis toward the most recent listings.

Step 2: Adjust for Your Unit's Specific Attributes

Once you have a comp range, adjust based on how your unit differs from the median of your comps.

Factors That Command a Premium

• Private outdoor space (yard, patio, balcony) — worth $75-$150/month in London's market for most unit types
• In-unit laundry versus shared laundry — worth $50-$100/month
• Dedicated parking — one spot adds $50-$100/month for units near downtown; less in suburban areas where parking is standard
• Basement units vs. above-grade — above-grade units rent for $100-$200 more for comparable square footage, all else equal
• Recently renovated kitchen or bath — commands 5-10% premium over original-condition comps
• Professionally managed and maintained — reduces vacancies more than it changes the list price, but it's a factor
• Pet-friendly — allows you to attract a broader applicant pool, though not necessarily at a higher price. See our post on pet policies in Ontario rentals for how to structure this

Factors That Require a Discount

• No parking in an area where comps have it
• Limited storage
• Older appliances in working condition but visually dated
• Basement or below-grade units with limited natural light
• Shared laundry when comps offer in-suite
• Near major arterial roads with noise exposure
• Longer walk to transit than comparable units

The total adjustment range on a typical London 2-bedroom rental is usually $100-$300 below or above the median comp, not more. If you're more than $300 off the median, revisit whether your comps are truly comparable.

Step 3: Do the Vacancy Cost Math Before You Hold on Price

Landlords sometimes insist on a target rent even when the market won't support it. It's worth understanding exactly what holding out costs.

For a unit that would rent at $1,850/month but you're asking $1,950:

• Every week vacant costs you $462 ($1,850/4)
• Every month vacant costs you $1,850
• If you sit vacant for 5 weeks trying to get $1,950, you lose $2,310 before even considering utilities and carrying costs
• You'd need to hold the tenant for over 23 months at $100/month more just to break even on that vacancy

The math almost always favours filling faster at market rate over holding for a price the market won't pay. Price to rent in 2-3 weeks. If you've had fewer than 10 inquiries after 10 days on the market at your ask price, the price is likely the issue.

When Pricing Below Market Makes Sense

There are specific situations where pricing 3-5% below market is the right call:

• You want to attract more applications to be more selective about tenants. A unit at $1,750 in a $1,850 market attracts 3x the applicants, giving you more choice.
• You have a strong existing tenant on a lease that's expiring. Keeping a great tenant at slightly below market is almost always cheaper than re-leasing the unit.
• The unit needs a cosmetic update you're not ready to do. Rather than renovate, price accordingly and let the tenant know what's there.

Pricing below market is a deliberate strategic choice — not a default. If you're doing it, know why.

Step 4: Account for Utilities in Your Pricing

London-area rental listings vary widely on what's included. Before you set your price, decide on the utility structure — and price it correctly.

If utilities are included in rent, you're absorbing the risk of usage increases. A tenant who runs the heat at 23°C all winter costs you real money. If the unit is all-inclusive, build a buffer — current average London hydro for a 2-bedroom apartment runs $80-$140/month depending on season and usage; gas $60-$120/month in winter. If you're covering both, your effective received rent is $140-$260 less than the listed price.

The cleaner approach for most landlords is to separate utilities. Tenants pay their own hydro and gas, you pay water/sewer if municipal (which is often landlord-covered in London). This eliminates your exposure to usage risk and keeps rent a cleaner number. See our post on utilities in Ontario rentals for how to structure this in the lease.

London Neighbourhood Demand: What the Market Actually Looks Like

London has meaningful geographic variation in rental demand. Here's a rough breakdown as of mid-2026:

Old North / Western University Area — Strongest demand from September to January as students secure units for the academic year. Units here sit vacant for almost no time during summer leasing season (April-July for September move-in). Pricing here can run $100-$200/month above comparable units in other areas.

Old East Village / Old South — Strong demand from young professionals and couples. Steady year-round demand with less seasonality than the university area. 2-bedroom and 3-bedroom row houses and detached rentals perform well here.

Byron / Westmount / White Oaks — Family-oriented. Demand for 3+ bedroom units with yards. Less competition from apartments. Slower to lease than core neighbourhoods but tenants tend to stay longer.

Downtown Core — Strong demand for 1-bedroom and studio units from young professionals and transplants. Condo-style units and converted commercial space compete here. Proximity to transit and walkability score matters more here than in suburban areas.

St. Thomas — Lower absolute rents than London but also lower vacancy. A 2-bedroom in St. Thomas rents for $1,400-$1,650 depending on condition, versus $1,650-$1,950 in comparable London neighbourhoods. Cost of living draw and proximity to London (30 minutes) makes it attractive to tenants priced out of the city.

Strathroy — Rents are lower ($1,200-$1,500 for a 2-bedroom), but demand is steady and competition from new supply is limited. Turnover is lower than in urban markets.

Step 5: Set Your Final Price and Build in a Review Trigger

Once you've set a price based on comps and adjustments:

• List at the price for 7-10 days and track inquiries and showings
• If you have 10+ inquiries and multiple qualified applicants, you priced at or below market — good
• If you have fewer than 5 inquiries after 10 days, drop the price $75-$100 and reassess
• Once you have a signed lease, note the final rent, the days-on-market, and any concessions — this becomes data for your next vacancy

Ontario's rent control rules mean your ability to increase rent annually is capped for most units. Pricing correctly at the start of a tenancy is more important than for units in places without rent control. For a unit with a tenant who stays 3 years, year-one pricing compounds into real money. See our post on Ontario rent increase guidelines for what increases are permitted during a tenancy.

The Bottom Line

Pricing rental property in London and southwestern Ontario is not complicated, but it requires actual data rather than intuition. Pull 5-8 valid comps, adjust for your unit's attributes, run the vacancy cost math before you hold out on price, and review after 10 days if the market isn't responding. A unit rented at the right price in 2 weeks beats a unit that sits for 6 weeks at a number the market won't pay.

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Prospera Properties manages rentals in London, St. Thomas, and Strathroy, Ontario. Get a free rental analysis or call (519) 697-1227.