London wants to keep the housing market stable while helping people visit the beautiful city. But because the rules for short term rentals in London changed recently, many homeowners feel unsure about how to host guests safely and legally.
Staying aligned with the 2026 rules helps you keep your home available for guests and avoid any unexpected penalties. Let’s discuss what are the legal requirements for short term rentals in London so you can keep your home open for guests without any stress. Since things move fast with short term letting in London, staying informed is the best way to protect your extra income.
The Essential 2026 Guide to Short Term Rentals in London Regulations
The City of London has strict rules to make sure there are enough homes for people who live here full-time. The most important rule is that you can only offer short term rentals in London in your primary residence.
If you want to start short term letting in London, you must also follow these specific rules. This rule applies even if you are only offering furnished short term rentals in London for a few weekends a year.
- The 29-Day Limit: Any stay that lasts 29 days or less is a short-term rental.
- One Property Rule: You can only have one license for one property at a time.
- Occupancy Limits: You can only have two people sleeping in each bedroom.
- Secondary Units: You may be able to use a legally registered basement suite or ‘granny flat’ if it is on the same property where you live, provided it is the only unit you are licensing for guests.
These London Airbnb regulations help keep neighborhoods quiet and safe for everyone. Following these steps ensures your property stays in good standing with the city.
Do I Need a License for Airbnb in London, Ontario?
Yes, every person who hosts a short term rental must have a valid business license from the city. You cannot list London short term rentals on sites like Airbnb or Vrbo without showing your license number on the page.
The city updated the prices for these licenses to cover the cost of checking on properties. Staying up to date with London Airbnb regulations ensures you don’t run into any unexpected issues with the city. To get your license for short term vacation rentals in London, you will need to complete a few steps.
Checklist for short term rentals in London applications
If you are a vacation rental manager and you want to apply for your license, make sure you have all your paperwork ready. A good short term property management strategy makes the process much faster.
As per the City of London’s Business Licensing By-law (Schedule 21), you must provide these specific items:
- Licensing Fees: A new application costs $552. After your first year, the annual renewal fee is $201 to stay active.
- Proof of Residence: You must show this is your primary home using a government ID and a utility bill.
- Written Permission: You need authorization from your landlord or condo board if you do not own the property.
- Insurance Certificate: You must show proof of at least $2M in liability coverage for guest stays.
What Are the Fines for Illegal Short Term Rentals in London?
The city has a much bigger budget now to find and fine people who do not follow the rules. The fine for a first-time offense of operating without a license is $1,500.
If a host continues to break the vacation rental regulations in London, those fines can go up to $5,000. The city uses federal funding to hire more officers who check on short term apartment rentals in London and respond to complaints from neighbors. Following all vacation rental regulations in London is the best way to avoid these high penalties. Even the websites you use can get in trouble. Platforms like Vrbo face fines starting at $10,000 if they allow furnished short term rentals in London to stay online without a proper license.
Host With Confidence in London
Managing Financials: The 5% Municipal Accommodation Tax (MAT)
Hosting guests in short term rentals in London means you have to collect a special tax called the Municipal Accommodation Tax. As of January 2026, the MAT rate is 5% plus HST for every stay.
This tax is a way for visitors to help pay for local tourism through Tourism London. It is a standard part of vacation rental management in the city. When you book a guest, you must follow these steps for the tax:
- List the 5% MAT as a separate line on the guest’s receipt.
- Collect the tax money from the guest.
- Send the money every month to the Ontario Restaurant Hotel & Motel Association (ORHMA).
Does this tax apply to all London short term rentals? Yes, it applies to every stay under 30 days. When you use vacation rental management services, tracking these payments becomes much easier. This ensures you never miss a deadline or fill out a form incorrectly.
Support Options for Homesharing in London
Looking after a space for guests involves many small tasks to keep things running smoothly. Taking care of a home for guests includes regular cleaning and maintenance coordination. Some people choose to use short term rental property management like Guestable Management Services to help with these daily tasks. There are several ways to find help depending on how you share your home.
Support Type | Best Use Case |
Stays under 29 days | |
Stays that last 30 days or more | |
Help with online tasks and bookings |
Different setups offer various benefits of property management, such as more free time for the host. Many people find that short term rentals in London are easier to manage with a little bit of professional help. Local groups like Guestable provide support for short term apartment rentals in London. This type of help simply ensures that your guest space meets local standards while you stay busy with your regular schedule.
Frequently Asked Questions
Yes, you can usually rent out one additional unit, like a basement suite, as long as it is on your primary residence property, meets all fire safety rules, and provided it is the only unit you are licensing for guests.
You must renew your license every year at the start of the calendar year. Keeping your license active is the only way to legally host short term rentals in London.
Yes, the 5% tax applies to all stays that are 29 days or less, even if the stay is very short.
The city may send an enforcement officer to inspect your property to ensure you are following occupancy and safety rules.
You can host in a condo if it is your primary residence, but you must have written permission from your condo board first.