The true cost of renting in London
Last reviewed October 30, 2026
Rent is the obvious number, but it isn't the whole cost of renting. To compare fairly with buying, you need the full picture, including the parts that make renting look better, which people often leave out.
Your monthly renting costs
| Cost | Notes |
|---|---|
| Rent | Check whether heat, water and hydro are included. Many older London buildings include some utilities |
| Utilities not included | Often hydro; sometimes heat and water in houses and newer buildings |
| Tenant insurance | Inexpensive and often required by landlords |
| Parking | Included in many London rentals, separate in some downtown buildings |
| Internet and phone | The same whether you rent or own |
| Laundry | Coin or card laundry adds up if there's no in-suite washer |
Occasional costs
- Moving: renters tend to move more often, and each move costs money and time.
- Last month's rent deposit: tied up while you rent (though it earns interest under Ontario rules).
- Furniture that fits each new space.
Rent increases: what to expect
In Ontario, the rules for rent increases depend on when your unit was first occupied:
- Units first occupied before November 15, 2018 (most older buildings and many houses): increases for sitting tenants are generally capped at the province's annual rent increase guideline, once every 12 months, with 90 days' notice.
- Units first occupied after November 15, 2018 (many newer buildings and basement units): generally exempt from the guideline. The landlord can raise the rent by any amount once every 12 months, with proper notice.
- When you move, your new landlord can charge whatever the market will bear.
That last point is key. A long-term tenant in a rent-controlled unit may pay well below market, and it can make moving very expensive. Renters often feel "stuck" in a unit for this reason.
Can a landlord end my tenancy? Only for reasons allowed under the Residential Tenancies Act, such as the landlord or a family member moving in (with notice and compensation), demolition or major renovation, or tenant-caused issues. It's a real risk for renters, especially in houses and condos owned by individuals. See stability: renting vs owning.
What renting doesn't cost you
This is where renting shines, and fair comparisons must include it:
- No property tax (your landlord pays it, though it's built into rent).
- No major repair bills. A new furnace or roof is the landlord's problem.
- No transaction costs to move: no land transfer tax, legal fees or commission.
- No large down payment tied up in a home.
The opportunity cost: investing the difference
A buyer puts tens of thousands of dollars into a down payment and closing costs. A renter can invest that money instead, in a TFSA, an FHSA or an RRSP. If renting is also cheaper month to month, the renter can invest that difference too.
This "rent and invest" strategy can match or beat buying, but only if the money is actually invested consistently. In practice, many renters spend the difference, which is one reason buying tends to build more wealth for typical households: a mortgage forces you to save.
Where to find current rent data
CMHC's annual Rental Market Survey reports average rents and vacancy rates for the London area. Current listings show today's asking rents, which are usually higher than averages that include long-term tenants.
Your renting number
Add up your monthly rent, utilities you pay, tenant insurance, parking and laundry. Then estimate how much rent might rise if you stay, and what it would cost if you had to move. That's the figure to compare with the true cost of owning.
A renter's checklist before deciding
- Is your unit subject to the rent increase guideline, or exempt?
- How much would a comparable unit cost if you had to move today?
- How much are you saving or investing each month?
- How long do you expect to stay in London?
Your local agent
Curious what owning would look like for you?
Comparing renting and buying only works with real numbers: actual homes in your price range, in neighbourhoods you'd want to live in. Rayna Elabed, a Sales Representative with CENTURY 21 First Canadian Corp., Brokerage in London, can show you what's available and what similar homes have recently sold for, so you can compare it fairly with your rent. No pressure, and no obligation to buy.
Browse London listings with Rayna