After graduation: sell, keep, or pass it on?

Last reviewed October 30, 2026

Graduation is when the student-home decision gets its final test. You have three main options, each with different costs, taxes and responsibilities. Start thinking about it at least a year before convocation.

Option 1: Sell

Selling turns the equity into cash and ends your landlord responsibilities.

• Timing: if roommates are on leases, their tenancies continue after a sale unless ended legally. Selling with vacant possession usually means planning around lease ends, often spring.
• Costs: commission, legal fees, and possibly a mortgage penalty.
• Tax: depending on ownership and use, a gain may be taxable. See ownership & financing.
• Preparation: student homes often need a refresh before sale, such as paint, cleaning, small repairs and possibly flooring. Budget for it.

Option 2: Keep it as a rental

If the numbers work, keeping the property as a long-term rental can continue building equity and avoid selling in a soft market.

• Pros: ongoing rental income, continued principal paydown, and time to choose when to sell.
• Cons: you're a landlord from a distance. Many owners hire a property manager.
• Who rents it: students again, or young professionals, depending on location.

Option 3: Pass it to a sibling

If a younger child is heading to Western or Fanshawe, keeping the home in the family spreads the buying and selling costs over many more years, often the single biggest factor in making a student purchase pay off.

Option 4: Your graduate stays

Many graduates stay in London for work, since healthcare, education, insurance and manufacturing are big local employers. If your child wants to stay in the home, consider whether to transfer ownership. Transferring a property between family members can trigger land transfer tax and capital gains, so get advice before doing it.

A year-before checklist

• Check lease end dates for all roommates.
• Get a market evaluation to see what the property might sell for, or rent for.
• Talk to your accountant about the tax consequences of each option.
• Check your mortgage term and any penalty for paying it off early.
• List repairs and updates needed either way.
• Decide on management if you'll keep it.

Selling a student rental: practical tips

• Communicate early and respectfully with tenants. They have rights, and cooperation makes showings much easier.
• Give proper written notice (24 hours) for showings.
• Consider timing the listing for when the home is empty and can be refreshed.
• Highlight features that appeal to the next owner: parking, updates, proximity to campus and transit.

If you keep it: hiring a property manager

Once your graduate moves away, someone needs to handle tenant screening, rent collection, repairs and Landlord and Tenant Board matters. Property managers in London typically charge a percentage of monthly rent, sometimes plus leasing fees. Ask about their experience with the kind of tenant your property attracts (students or professionals), how they handle maintenance approvals, and how often they inspect. Include their fees in your numbers before deciding to keep the property.

What buyers will look for

When you sell, the likely buyers are first-time buyers, investors and other parents. First-time buyers notice condition and finishes. Investors look at rent, licensing and the tenancy situation. Parents look at the walk or bus ride to campus. A clean, well-maintained property with clear paperwork (licence, leases, maintenance records) appeals to all three.