Renting to your student's roommates

Last reviewed October 30, 2026

When roommates pay rent, you become a landlord, with legal obligations under Ontario's Residential Tenancies Act and the City of London's by-laws. It doesn't matter that the tenants are your child's friends. Here's what you need to know.

Does the Residential Tenancies Act apply?

Generally, yes, when you rent rooms in a property to tenants. One important exception: the Act generally doesn't apply where the occupant shares a kitchen or bathroom with the owner, or certain of the owner's family members, who live there. Whether that exception applies when your child lives in a home you own depends on the specific circumstances and relationships, so get legal advice rather than assuming either way.

Leases

• Most residential tenancies in Ontario must use the Standard Form of Lease.
• Decide between a joint lease (all roommates together) and individual leases (each room separately). Individual leases give more control over each tenancy, but more paperwork.
• A parent guarantor for each roommate is common and sensible for student tenants.
• Fixed-term leases generally continue month to month after they end. You can't simply end a tenancy because the school year is over.

Deposits and rent

• You may collect a last month's rent deposit (no more than one month), with annual interest owed to the tenant.
• A refundable key deposit is allowed. Damage deposits are not.
• Rent increases are limited to once every 12 months with 90 days' notice, and units first occupied before November 15, 2018 are generally subject to the annual guideline.

City of London requirements

• Rental licensing: London licenses many residential rental units in buildings with four or fewer units. Check whether your property needs a licence before roommates move in. Our sister site's guide to rental licensing explains the process.
• Zoning: check bedroom limits and permitted uses for the property.
• Fire and property standards: alarms, egress and maintenance must meet requirements.
• Neighbourhood by-laws: noise, garbage and parking rules apply, and repeated complaints can bring fines.

Insurance

Tell your insurer that the property is rented to roommates. A standard homeowner policy may not cover a rental. You'll likely need a landlord or rental dwelling policy, and each roommate should have their own tenant insurance for their belongings and liability.

Summer and turnover

Many students leave London in the summer. Plan ahead:

• 12-month leases reduce summer vacancy but may be harder to fill.
• Tenants may want to sublet, which is allowed with landlord consent (consent can't be arbitrarily withheld).
• Budget for some vacancy in your numbers.

When things go wrong

If a roommate stops paying or causes problems, you must follow the Landlord and Tenant Board process. You can't change the locks or remove belongings. Hearings can take time, which is why careful selection of roommates and guarantors matters.

Taxes

Rental income from roommates is generally taxable to the owner, offset by eligible expenses. Keep good records, and speak with an accountant.

Choosing roommates

Even if roommates are your child's friends, treat it like any rental: a written application, references, and a guarantor. Apply the same criteria to everyone, consistent with Ontario's Human Rights Code. Friendships can change over a school year, and clear paperwork protects everyone, including your child, if they do.