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If you own a property in London, Ontario and want to add a rental unit — or if you're buying a property and want to know whether you can legally rent it out — zoning is where you start.
Zoning controls what you're allowed to do with a piece of land. Get it wrong and your building permit gets denied, your rental licence application stalls, or you end up with a unit you can't legally rent. Get it right and you open the door to a legal rental income stream on land you already own.
This guide covers how London's zoning system works for landlords, what recent provincial changes mean for your property, and what steps you need to take before adding a unit.
How London Ontario Zoning Works
The City of London regulates land use through its Zoning By-law Z.-1, which assigns every property in the city to a zone. Each zone specifies what uses are permitted — and under what conditions.
For landlords, the zones that matter most are residential zones:
- R1 — Traditionally single-detached homes. Historically restricted to one dwelling per lot.
- R2 — Allows two-unit dwellings (semi-detached, duplexes) as-of-right.
- R3 — Low-density residential. Permits small apartment buildings and additional residential units.
- R4 — Medium-density residential. Rowhouses, low-rise apartment buildings.
- R5 and R6 — Medium to high-density residential. Larger apartment buildings, stacked townhouses.
The zone your property sits in determines what you're allowed to build, how many units you can have, setbacks from property lines, parking requirements, and more.
To look up your property's zoning, use the City of London's online mapping tool at london.ca. Search your address and the zoning designation appears. If you're unsure what your zone permits, call the City's Planning and Development department — they'll tell you exactly what's allowed before you spend money on drawings.
What Provincial Rules Changed for London Landlords
If you've heard that "zoning doesn't matter anymore" for basement apartments, that's partly true — but not the whole picture.
In 2022 and 2023, the provincial government passed a series of housing bills (including the More Homes Built Faster Act) that required every municipality in Ontario to permit up to three residential units as-of-right on any residential lot served by full municipal water and sewer. The goal was to increase housing supply without requiring landowners to go through lengthy rezoning applications.
For a London landlord, this means:
You can generally add up to three total units on a single residential lot — in any residential zone, as long as the property has municipal water and sewer connections. A common three-unit configuration:
- Main house (unit 1)
- Basement apartment (unit 2)
- Garden suite/detached ADU in the backyard (unit 3)
This applies even in R1 zones, which previously were limited to one unit. The provincial rules override the older single-unit restriction.
What "as-of-right" means: You don't need to apply for a zoning amendment or variance — the use is already permitted by provincial policy. You still need a building permit and all units still need to pass inspection. But zoning itself is not a barrier in most cases.
Where the provincial rule does NOT override local zoning:
- Properties on private well or septic (not full municipal services)
- Properties in floodplains or conservation authority-regulated areas
- Lots that physically can't accommodate additional units due to setback or lot coverage limits
- Heritage-designated properties
If any of these apply to your property, check with the City's Planning department before assuming you can add a unit.
Basement Apartments: The Most Common Addition
A second unit (basement apartment) is the most common way London landlords add rental income to an existing property.
Under provincial rules, second units are permitted as-of-right in all residential zones where there are municipal services. You don't need to rezone. You do need to:
- Register the unit with the City of London through the Second Unit Registration program
- Obtain a building permit (for new construction or significant alterations)
- Pass a city inspection covering fire separation, egress, ceiling height, plumbing, and electrical
- Apply for a Rental Housing Licence before renting it out
The registration process is separate from the licence — many landlords confuse the two. Registration confirms the unit meets building and fire code. The licence confirms you meet ongoing rental housing standards and allows the city to contact you as the responsible party.
For a full breakdown of the registration steps, costs, and what inspectors look for, see our guide: City of London Second Unit Registration: What Landlords Need to Know.
Garden Suites and Detached ADUs
A garden suite (also called a detached additional residential unit or backyard suite) is a separate, self-contained dwelling built on the same lot as a main house — but detached from it. Think a coach house, carriage house, or purpose-built backyard unit.
Under the provincial housing legislation, London must permit garden suites in residential zones where there are municipal services. The City has updated its zoning by-law to comply.
Key points for London landlords:
- The garden suite must meet Ontario Building Code requirements for a full residential unit (kitchen, bathroom, sleeping area, egress, fire safety)
- Setbacks from property lines and maximum size limits still apply — these are in the Zoning By-law Z.-1 and vary by lot size
- A building permit is required
- Once built, the unit requires its own City of London Rental Housing Licence if it will be rented
Garden suites are particularly attractive in London neighbourhoods with large lots — areas like Wortley Village, Old South, Byron, and parts of East London often have enough backyard space to accommodate them. Check setbacks carefully before investing in drawings.
Multi-Unit Buildings: Zones R3 and Up
If you want more than three units on a single property — or you're buying an existing multi-unit building — you're operating in R3 or higher zones.
R3 and above permit:
- Triplexes and fourplexes
- Row houses and townhouses
- Low-rise apartment buildings (typically defined as fewer than five storeys in London's by-law)
- Mixed-use buildings (residential above commercial)
R5 and R6 zones cover larger apartment buildings and are typically found near the core, along arterial roads, and in the Old East Village, downtown, and other intensification corridors.
If you're buying a rental property with more than four units, verify the zone before closing. An existing building operating as a fourplex in an R2 zone may be a legal non-conforming use — permitted only because it predates the current zoning rules, and subject to restrictions if you want to alter or expand it.
Legal non-conforming use: A building that doesn't conform to current zoning but was built legally under older rules. You can continue using it, but if you substantially renovate or the use is discontinued for a period, you may lose the non-conforming status. Always get a zoning compliance letter from the City before purchasing a property with a non-conforming configuration.
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Multi-Tenant Houses (Rooming Houses)
Rooming houses — where individual rooms are rented separately, often sharing kitchen and bathroom facilities — operate under a completely different regulatory framework than standard rental units.
In London, rooming houses require:
- A City of London Rooming House Licence (separate from the Rental Housing Licence)
- Location in a zone that permits this use (generally R3 and higher — they are not permitted in R1 or R2 zones)
- Compliance with specific property standards and safety requirements
If you're considering converting a large single-family home into individually rented rooms, check the zone first. R1 or R2 properties cannot legally operate as rooming houses regardless of how many rooms they have.
Short-Term Rentals (Airbnb)
Short-term rental platforms like Airbnb operate outside the standard long-term rental framework. In London, short-term rentals are subject to additional regulations and are not a straightforward as-of-right use.
The detailed rules are covered in our guide: Airbnb and Short-Term Rentals in Ontario: What Landlords Need to Know.
Zoning Doesn't Replace Other Approvals
A common mistake: a landlord confirms zoning permits a use, then assumes that's all they need. Zoning is the starting point, not the finish line.
For any rental unit in London, you also need:
- Building permit — for new construction, conversion, or significant alterations
- City inspection — to confirm building code, fire code, and property standards compliance
- Second Unit Registration — for basement apartments and additional units
- Rental Housing Licence — required before any unit can be legally rented
- Annual licence renewal — the licence must be renewed each year
Non-compliance with any of these can result in fines, orders to vacate tenants, and complications at the LTB if you need to enforce a lease. The London Property Standards By-law operates in parallel with the RTA — you can be cited under both frameworks simultaneously.
For more on property standards compliance in London, see: London Ontario Property Standards By-law: A Landlord's Guide.
For the rental licence process and what it costs, see: City of London Rental Unit Licence: The Complete Landlord Guide.
For annual renewal requirements, see: City of London Rental Unit Licence Renewal: What to Expect.
Common Mistakes London Landlords Make on Zoning
Assuming the province's "3-unit rule" applies everywhere. It doesn't. Properties on private services, in conservation zones, or with significant lot constraints may still face zoning barriers. Check before you draw plans.
Starting construction before confirming zoning. Unpermitted work that gets discovered during a licence inspection or property standards complaint triggers orders to comply — and sometimes orders to remove. Retroactive permits are harder to get and more expensive.
Buying based on the seller's description of use. "We've always rented the basement" is not the same as a registered second unit with a valid licence. Do your own zoning due diligence on any purchase.
Ignoring parking requirements. Most R1 and R2 additions require at least one parking space per unit. If your lot doesn't have room, you may need a minor variance — a separate application with a filing fee and potential public notice period.
Confusing zones with the rental licence requirement. Even in zones that clearly permit multi-unit use, every individual rental unit in London still requires its own Rental Housing Licence.
FAQ
Does my London property need to be rezoned before I can add a basement apartment? No — under provincial rules, second units are permitted as-of-right on residential properties with municipal services. You don't need a rezoning application. You do need a building permit (if applicable), registration, and a rental housing licence.
My property is zoned R1. Can I legally rent out the basement? Yes, in most cases. Provincial legislation requires municipalities to permit second units in all residential zones served by municipal water and sewer. Confirm there are no site-specific restrictions (heritage, floodplain, etc.) by checking with the City's Planning department.
What is a minor variance and when do I need one? A minor variance is an approval from the Committee of Adjustment to allow a small deviation from zoning rules — for example, a reduced side-yard setback. If your proposed addition technically doesn't meet a measurement requirement, you may need a minor variance before the city will issue a building permit.
Can I have four units on my London property? The provincial "3-unit as-of-right" rule covers three units on a residential lot. A fourth unit would generally require either an R3 or higher zone designation — or an application to rezone. Speak with the City's Planning department if you're targeting four or more units.
What's the difference between a legal non-conforming use and an illegal unit? A legal non-conforming use was built legally under former zoning rules that have since changed. An illegal unit was never approved and doesn't have permits. The distinction matters significantly for insurance, LTB proceedings, and financing. If you're buying a property with multiple units, get a zoning compliance letter and review building permits on file.
How do I look up zoning for a London property? Use the City of London's online mapping tool at london.ca. Search the address and the zoning designation will appear. Call the Planning department if you need clarification on what the zone permits.
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🏠 Thinking of adding a unit to your London, Ontario property?
The province now requires municipalities to permit up to 3 units on residential lots — but that doesn't mean zoning doesn't matter. R1 zones, private services, conservation areas, and parking requirements all still apply.
Here's what London landlords need to know before they draw a single line: [link]
#LondonOntario #OntarioLandlords #PropertyManagement #BasementApartment #RentalProperty
Zoning is the foundation everything else is built on. Before you commission drawings, sign a purchase agreement, or start renovating — confirm what your lot is permitted to do.
If you're adding a rental unit in London and want to make sure every step is done correctly — from zoning to registration to licensing — Prospera Properties works exclusively with small landlords in the London, St. Thomas, and Strathroy area. We handle the compliance details so you can focus on the return. Contact us to learn what we do and what it costs.