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Two services. Different scopes. One decision that shapes how much time you spend managing your rental for the next year — or the next decade.
Tenant placement and full property management are both ways to get professional help with your rental property. But they solve different problems. Pick the wrong one for your situation and you either pay for more than you need, or you end up short on support at the worst possible moment.
This guide breaks down both services, what each one actually includes, what it costs in London and surrounding areas, and the questions to ask yourself before deciding.
What Is Tenant Placement?
Tenant placement is a one-time service. You hire a property manager to find you a qualified tenant, and the engagement ends when the lease is signed and the tenant moves in.
A standard tenant placement service includes:
- Listing the property — professional photos, written copy, posting to MLS, Rentals.ca, Kijiji, Facebook Marketplace, and other platforms
- Fielding inquiries — responding to leads, filtering unqualified applicants, scheduling showings
- Showing the unit — in-person or video walkthroughs with interested applicants
- Screening applicants — credit check, employment and income verification, rental history and reference calls
- Selecting a tenant — reviewing applications and making a recommendation (or decision, if you authorize it)
- Preparing the lease — an Ontario Standard Lease with appropriate clauses for your property
- Collecting first month's rent and the last month's rent deposit
- Completing the move-in inspection report
What tenant placement does NOT include:
- Ongoing rent collection
- Day-to-day maintenance coordination
- Tenant communication after move-in
- Lease renewals and rent increase notices (N1)
- LTB proceedings if issues arise
- Year-end financial statements
After the tenant moves in, you take over completely. The property manager is done.
What Is Full Property Management?
Full property management is an ongoing service. You hire a property manager to handle the complete operation of your rental — from finding tenants to managing them month to month and year to year.
Standard full management services include everything in tenant placement, plus:
- Monthly rent collection — rent is collected, deposited, and late payments are followed up on your behalf
- Monthly owner statements — itemized income and expense reporting
- 24/7 maintenance coordination — tenants contact the property manager, not you; work orders are dispatched to vetted tradespeople
- Routine inspections — periodic property inspections to catch problems before they become expensive repairs
- Lease renewals — the property manager prepares and serves rent increase notices (N1) on time, tracks the 90-day window, and handles all renewal paperwork
- Tenant turnover — move-out inspection, deposit reconciliation, re-listing, and screening for the next tenant
- LTB support — if a tenant stops paying or violates the lease, the property manager prepares N4 notices, files L1 applications, attends hearings, and coordinates Sheriff enforcement when necessary
- Annual rent deposit interest — tracking and issuing the required annual interest on the last month's rent deposit (a legal obligation under the RTA that most self-managing landlords never fulfill)
- Year-end tax package — organized income and expense records for your accountant
Full management handles the operational reality of being a landlord so you don't have to think about it.
What Does Each Service Cost in London?
Both services are priced in proportion to rent. London rents vary by unit type and neighbourhood, but here are working numbers for 2026:
London, Ontario — typical rent benchmarks:
| Unit Type | Monthly Rent Range |
|---|---|
| 1-bedroom | $1,600–$1,900 |
| 2-bedroom | $1,950–$2,250 |
| 3-bedroom | $2,400–$2,800 |
Tenant placement fee — typical range:
- 50–100% of one month's rent
- On a $2,100/month 2-bedroom: $1,050–$2,100 (one-time)
- Some companies charge a flat fee instead of a percentage
Full property management — typical range:
- 8–12% of monthly gross rent
- On a $2,100/month 2-bedroom: $168–$252/month = $2,016–$3,024/year
The break-even question:
If you hire tenant placement at $1,800 and manage the rest yourself, that's your total cost for year one — as long as nothing goes wrong. If a tenant stops paying in month six and you need to file an L1 at the LTB, you're adding time, filing fees ($186), and potentially legal fees on top of the original $1,800.
If you hire full management at $210/month ($2,520/year), that covers rent collection, maintenance coordination, the L1 if needed, lease renewal notices, and monthly reporting. The fee is predictable. The costs of self-managing are not.
For a detailed cost breakdown — including the real time cost of self-managing — see Property Manager vs. Self-Managing in Ontario.
When Tenant Placement Makes Sense
Tenant placement is the right choice when you have the time and capability to manage the ongoing relationship — but you don't want to run the marketing and screening process yourself.
Tenant placement fits your situation if:
- You live within 30 minutes of the property and can respond to maintenance calls
- You have a flexible schedule and can handle tenant contact during business hours
- You have some landlord experience — you know the RTA, you've served notices before, and you understand the LTB process if something goes wrong
- You already have reliable tradespeople on call (plumber, electrician, HVAC technician)
- You're comfortable running inspections, tracking rent, and serving N1 notices with 90 days' notice
- The unit is in good condition and unlikely to generate frequent maintenance calls
- You have a long-term, stable tenant in place and just need help filling the unit next time they leave
Tenant placement does NOT protect you from:
- A tenant who stops paying rent after month one
- A lease renewal you forget to handle on time
- A maintenance issue that gets worse because you didn't respond quickly enough
- The LTB hearing process — including the N4, L1, hearing preparation, and Sheriff coordination
- Your legal obligation to pay interest on the last month's rent deposit every year
If you're a first-time landlord, placement-only carries real risk. Screening a good tenant and managing a problem tenant are two different skill sets. The most expensive tenant is usually one who looked fine at move-in.
When Full Property Management Makes Sense
Full management is the right choice when the operational burden of running a rental — not just filling it — is the actual problem you're trying to solve.
Full management fits your situation if:
- You work full-time and can't take maintenance calls during the day
- You own two or more properties, or you're planning to add more
- You live more than 30–45 minutes from the property
- You've had LTB experience before and have no interest in repeating it
- Your current tenant won't be there forever, and you don't want to run the vacancy process from scratch every time they leave
- You want rent increase notices, deposit interest tracking, and lease renewals handled without you monitoring deadlines
- You want to grow your portfolio without your management workload growing at the same rate
Full management also protects your asset. Routine inspections catch problems when they're small. A property manager flags the slow-draining basement floor in month two, not after water damage has spread in month eight. For landlords managing multiple units, see Managing Multiple Rental Properties in Ontario for a look at where the cracks typically appear.
For the full list of signals that tell you it's time to hire a property manager, see When to Hire a Property Manager in Ontario.
What to Confirm Before Signing Any Management Contract
Not all property management companies offer the same scope under the "full management" label. Before you sign, ask directly:
- Do you handle LTB filings? Some companies help prepare notices but don't attend hearings or file L1 applications. Know exactly where their service ends.
- Who does maintenance coordination? Do they dispatch work orders and confirm completion, or do they just pass the call to you?
- How is rent collection handled? Is it direct deposit, cheque, or a portal? What is the late-payment follow-up process and timeline?
- Do you handle lease renewals and N1 notices? Or does that fall back to me at renewal time?
- What is the vacancy fee? Many companies charge a separate tenant placement fee each time a new tenant is needed — on top of the monthly management fee. The total cost is placement fee + monthly fee, not just the percentage. Know what you're actually paying over a full year.
- What notice do I need to give to end the management agreement? If you sell the property, decide to self-manage, or are unhappy with the service, understand your exit options before you're in that situation.
A property manager who can't give clear answers to these questions is not worth hiring.
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The Hybrid Approach: Start with Placement, Add Management Later
Some landlords start with tenant placement and decide later — after a difficult maintenance situation or a problem tenant — that they want full management. This is a reasonable progression. But the transition works best when you've kept organized records from the start.
When a property manager takes over mid-tenancy, they need:
- A copy of the signed lease
- The current rent amount and the last month's rent deposit figure
- Documentation of any interest accumulated on that deposit (it's owed every year under the Ontario Residential Tenancies Act — most self-managing landlords have never paid it)
- Maintenance history — what's been repaired, when, by whom
- The tenant's payment history — has rent always been on time, or have there been gaps?
Without those records, the onboarding takes longer and creates gaps in the paper trail. If you're self-managing now with a plan to transition later, keeping organized records costs you nothing. See Landlord Record-Keeping in Ontario for what to track and how.
Common Mistakes When Choosing Between These Services
1. Choosing placement to save money — then spending more on a bad tenant.
A $1,500 placement fee with rushed screening can result in a non-paying tenant, a $186 LTB filing fee, a 3–5 month eviction process, and lost rent while the unit sits occupied by someone who isn't paying. The placement fee is not where the savings are. The right tenant is.
2. Choosing full management and then micromanaging.
If you hire a property manager and call about every maintenance ticket, override their tenant communication, or reject their advice on pricing, you've paid for management and done the work yourself. If you don't trust the manager's judgment, you've hired the wrong manager.
3. Assuming "full management" covers everything.
Read the contract. Scope varies significantly. Some companies exclude LTB proceedings. Some charge additional fees for extended vacancies. Know what you're buying before you need it.
4. Forgetting the vacancy fee structure.
If a full management contract includes tenant placement at no additional charge when a tenant leaves, that's meaningfully different from a contract where you pay a separate placement fee each time. Over a 10-year ownership period, the difference can be several thousand dollars.
5. Choosing placement for a property that needs active management.
An older building, a unit with deferred maintenance, or a high-turnover rental will generate more maintenance calls and more tenant issues than a newer, well-maintained unit. If your property is likely to need active attention, placement-only is a gap-filled strategy.
6. Waiting until something goes wrong to hire a property manager.
The right time to hire a property manager is before a problem, not after you're already in one. By the time you're in an LTB proceeding or chasing a tenant for three months of arrears, you're in damage control. An experienced property manager prevents most of the problems landlords end up fighting.
Frequently Asked Questions
What's the difference between tenant placement and property management? Tenant placement is a one-time service: a property manager markets your unit, screens applicants, drafts the lease, and delivers a qualified tenant. Full property management is ongoing: they collect rent, coordinate maintenance, handle renewals and notices, and manage the entire landlord-tenant relationship on your behalf.
Is tenant placement worth it? Yes — if you can manage the tenant relationship after move-in. Professional screening gives you credit-checked, employment-verified, reference-confirmed applicants. That quality is hard to replicate on your own, especially when you're busy and the London rental market moves quickly. If you can't manage the ongoing relationship effectively, the placement fee doesn't solve your actual problem.
How much does tenant placement cost in London, Ontario? Typically 50–100% of one month's rent. On a $2,100/month 2-bedroom unit, that's $1,050–$2,100 as a one-time fee. Some companies charge a flat fee. Confirm whether the fee covers the move-in inspection and whether there's a replacement guarantee if the tenant doesn't stay.
How much does property management cost in London? Typically 8–12% of monthly rent. On a $2,100/month 2-bedroom, that's $168–$252/month — or $2,016–$3,024/year. That fee should cover rent collection, maintenance coordination, routine inspections, lease renewals, and LTB support. Confirm the scope in writing before signing.
Can I start with tenant placement and switch to full management later? Yes. Many landlords do this — often after a difficult situation that made the management burden clearer. The transition works best when you have organized records: signed lease, deposit amount, payment history, and maintenance documentation. Without those, the onboarding takes longer.
What happens if a tenant stops paying after a tenant placement? That's yours to handle. The placement service is complete once the tenant moves in. You would need to serve an N4 notice within the proper timeframe, file an L1 application with the LTB, prepare evidence, attend a hearing, and coordinate Sheriff enforcement if the order isn't followed. If you're not comfortable with that process — or don't have the time — full management is the safer choice from the beginning. For context on what that process looks like, see What to Do If a Tenant Stops Paying Rent in Ontario.
Does full property management include finding a new tenant when one leaves? It should — but confirm this before signing. Most full management contracts include tenant placement as part of the service at no additional charge. Some charge a separate placement fee on top of the monthly management fee each time a vacancy arises. Read the contract.
Does the tenant's lease continue if I switch from self-managing to full management? Yes. A change in who manages the property doesn't affect the tenancy. The tenant's lease remains in force, their rent stays the same, and all existing obligations — including any accumulated interest on their last month's rent deposit — transfer to the new management arrangement. The Ontario Residential Tenancies Act governs the tenancy itself, regardless of who administers it.
Which One Is Right for You?
If you have the time, experience, and systems to manage a tenant month to month — and you just need professional help finding the right one — tenant placement is a good fit.
If managing the ongoing relationship is the part you don't want to do, or can't do well given your schedule and the distance to your property, full property management solves the actual problem.
Most landlords who have been self-managing for a year or two find that tenant placement was a starting point, not a complete solution. The vacancy is the easy part. The rest of the year is where the real management work happens.
If you're weighing the options for a rental property in London, St. Thomas, or Strathroy, Prospera works with landlords at both levels. We can help you fill a vacancy with a qualified, vetted tenant — or take the whole operation off your plate on an ongoing basis. View our tenant placement service or see full management pricing to understand what each looks like in practice.