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Short Term Rental Accommodations

HomeTownship HallBy-law and EnforcementShort Term Rental Accommodations
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STRA

To ensure that the licensing process is efficient, compliant, and user-friendly, and due to unexpected technical issues, Council approved a new Short Term Rental Accommodation Licensing By-law 2025-049 on April 16, 2025.  This By-law reflects proposed changes endorsed by Planning Committee on March 13, 2025 as well as some minor housekeeping, technical and administrative items.     

A copy of the new By-law can be found in the Document Centre. The key changes that were made are as follows:

  • Those who are operating an STRA in 2025 will be permitted to continue to advertise and operate through the end of the year, however they must submit their application by December 31, 2025.
  • Commencing May 1, 2026 rental restrictions that apply to Waterfront, R4 & Waterbody Open Space zones will come into effect. These restrictions are to cease all rentals for one week in each of June, July and August (the ‘Summer Monthly Break’) and to not provide the STRA to more than one Primary Renter (rental group) per every six (6) consecutive nights (the ‘Summer Rental Frequency’). All bookings must be in accordance with these restrictions commencing May 1, 2026.
  • The occupancy limit for an STRA is two (2) persons per bedroom. However, an applicant may request an increase of this number if they can demonstrate to the satisfaction of the Township that the sewage disposal system serving the premises was designed and constructed in compliance with the Ontario Building Code to accommodate a higher occupancy number requested on the application.

The Township expects to launch the online application portal by this summer and encourages all operators to submit their applications once the portal is live, as an influx of submissions is projected.

While these changes are underway, the Township continues to work with their service provider to ensure a successful launch of the online application portal as soon as possible. An additional update will be provided when the online application portal is open and license applications are being accepted.

Please subscribe to the Engage Muskoka Lakes Short Term Rentals page to receive updates. 

On Tuesday December 10, the Township hosted 3 virtual open houses to share more information about the STRA program, the recordings can be found below: 

Tuesday December 10 - 10:00 am 

Tuesday December 10 - 1:00 pm

Tuesday December 10 - 4:00 pm

Presentation Slide Deck

It is Council’s hope that the Short Term Rental Accommodation Licensing Program will help to maintain community character while also ensuring rental properties are safe for occupants.

The licensing program will also help to ensure properties that are operating as short term rental accommodations are compliant with all by-laws and applicable regulations and to assist municipal law enforcement officers in remediating concerns. 

What is a Short Term Rental Accommodation? 

A “Short Term Rental Accommodation (STRA)” means the use of a Premise or any part thereof, that is operating or offering a place of temporary accommodation, lodging or occupancy by way of concession, permit, lease, License, rental agreement or similar arrangement for a period of 28 consecutive calendar days or less, throughout all or any part of a calendar year. Short Term Rental Accommodation uses shall not include a resort, motel, hotel, bed and breakfast establishment, private camp, tent and trailer park or rooming house as defined within the Zoning By-law.

 I have a concern about a Short Term Rental Accommodation, who can I contact?
If you have a concern related to a STRA, you can report it to the Township through the Report a Concern form. 

Rental Restrictions

 Occupancy 
  • All STRs have an occupancy limit of two (2) persons per bedroom. If an applicant can demonstrate to the satisfaction of the Township that the sewage disposal system serving the premises was designed and constructed in compliance with the Ontario Building Code to accommodate a higher occupancy number, the Township may increase the maximum occupancy number on the issued license.
  • Only one (1) STRA license will be issued per premises.  In other words, an operator cannot rent different buildings to different rental groups at the same time. All habitable buildings can be rented out. This includes sleeping cabins/bunkies and second storey boathouses. 
 Rental Frequency
  • For those STRs located in the Waterfront Residential, Community Residential (R4) or Waterbody Open Space Zone, the following additional restrictions apply:
  1. In June, July and August, a minimum of seven (7) consecutive nights in each month must be taken off
  2. from operating an STRA, known as the “Summer Monthly Break”, and;
  3. Between the Friday immediately preceding Victoria Day to the Tuesday immediately following Labour Day, only one (1) rental group is permitted per every six (6) consecutive night period, known as the “Summer Rental Frequency”.
  4. For properties located in all other zones, rental restrictions 1 and 2 do not apply but the occupancy limits must be adhered to. 

calendar with examples of rentals

calendar with examples of rentals

  • The week off restriction simply must be 7 consecutive nights. The calendar is only for illustration purposes. The week off can be from Tuesday to Tuesday or Wednesday to Wednesday, etc.
  • The week off cannot straddle over two months.
  • A break between rental groups is not required if rentals are longer than six (6) consecutive nights in the summer, provided you also adhere to the Summer Monthly Break in each of June, July and August.
  • Information on the occupancy limit of your private sewage disposal system may be found on a recent building permit or by contacting the Township’s Building Department.
  • To find out how your property is zoned, please use Muskoka GeoHub or contact the Township’s Planning Department.
  • Owners and their family/friends are still permitted to occupy the STRA when it is not rented at any point throughout the year. 

Application Process

 Prepare to Submit an Application
  1. Ensure all outstanding fees and fines are paid for the property and owner. 
  2. Review and complete the Pre-Application Checklist. 
  3. Review the Application Resources for assistance.
  4. Prepare the application fee: 
  • For properties in the Waterfront or R4 zones (Community Waterfront Residential), the application fee is $1,000.00 annually. 
  • For all other zones, the application fee is $500.00 annually.
    To confirm the zoning of a property is please visit the Muskoka Geohub. 
 Apply for a License

Once live, operators will apply and pay for the application through our online portal. 

The Township is anticipating a large volume of applications during the initial implementation of the program given the number of known short term rental accommodations in the Township. As a result, review times may be delayed while the Township works diligently to circulate applications to all relevant departments and review applications as quickly and efficiently as possible. 

Due to the anticipated influx, we encourage operators to submit their applications as early as possible.

 Obtaining a License
If you have successfully obtained a license, please ensure you:
  • Add the license number to all advertisements; 
  • Ensure the Renter’s Information Package is in an accessible location for renters; 
  • Ensure compliance with the terms and conditions of the license and all applicable laws; 
  • Remember to renew your license annually. 

 

Application Resources

Pre-Application Checklist (updated Apr. 16/25)

Floor Plan Example  
(updated Jan. 27/25)

Licensee Acknowledgement Form  (updated April 16/25)

Muskoka Lakes Fire Department

Site Map Example

Responsible Person Declaration Form  (updated Feb. 5/25)

Renter's Code of Conduct (Owner)  (updated Apr. 16/25)

Owner Authorization Form

Boater Safety Information

Common Offences and Penalties

Renter's Code of Conduct (Renter) (Updated Jan. 27/25)

Renter Information Package Example (Updated Apr 16/25)

Other Applicable By-Laws

STRA Licensing 

Administrative Monetary Penalty System

Burning

Fireworks

Dog Control

Dark Sky

Fees and Charges

Noise

Appeals and Hearings

If a STRA owner’s license application has been refused, or their license has been suspended or revoked, they will no longer be able to operate the STRA. The owner will be notified with an explanation. If the owner does not agree with the decision, the owner has twenty days from the date of the notice to appeal the decision and request a Hearing with the Appeal Committee: 

  1. Complete the Appeal Request Form and pay the Appeal Fee of $320.00 to the Township. 
  2. The Township will schedule a Hearing with the Appeal Committee and will notify the owner of the date and time. If the owner would like to submit any documents for the committee to review, they must be sent to the Township in advance.  
  3. At the Hearing, the Appeal Committee will review all information and can make any of the following decisions: affirm, modify, or rescind the refusal, suspension, or revocation. The committee’s decision is final and binding. If the owner does not appear at the Hearing, they will be subject to a non-appearance fee of $200.00.  

Frequently Asked Questions

 What is a premises?
A Premises is the property in which a short term rental accommodation is operating on and includes all legal buildings, structures, and features on the property.  
 When is an STRA license not required?

If you rent your property for over 28 consecutive days or are a hotel, motel, bed & breakfast, private camp, tent and trailer park, or rooming house, you are not required to obtain a STRA license.  

STRAs are not permitted to be operated out of non-habitable spaces, motor vehicles trailers, vessels (whether docked or not), and community housing. 

If my property has more than one legal habitable building (cottage, sleeping cabin/bunkie, second-storey boathouse), can I rent all of them?

The By-law permits only one license per premise. On one property you could have multiple buildings, however you can only have one rental group at a time. Whether or not your rental group rents out one or all buildings is an owner’s decision, however it must comply with the occupancy restriction of 2 persons per bedroom and within the limit of your approved sewage disposal system.

 Are there any limits on how often I can rent out my STRA? 
Yes, these provisions only apply to Waterfront and R4 (Community Waterfront Residential) zoned properties that operate a short term rental accommodation and are only subject to dates between the Friday before Victoria Day weekend to the Tuesday after Labour Day weekend of each year: 
  • All Waterfront and R4 (Community Waterfront Residential) STRA owners must take a one week break from renting (seven consecutive nights) during the summer months. 
  • All Waterfront and R4 (Community Waterfront Residential) STRA owners are limited to accommodating only one rental group every six consecutive nights. There is no minimum or maximum number of nights per stay. 

 

 How long will it take for my application to be approved?
Given that there will be an influx of applications, we are unable to give an exact timeline for review at this time. The Township will be working diligently to circulate applications to all relevant departments and review applications as quickly and efficiently as possible. Owners are permitted to continue operating their STRA after they have applied, unless the Township has identified a concern.  
Will my property be inspected during the application process? Am I required to let the Township onto my property? Am I required to let the Township inside of my dwelling? 

There is no mandatory inspection requirement within the by-law however, during the Township’s review of an application, if a concern is identified and an inspection is required, the Township will notify the owner. The owner will be required to pay an Inspection Fee depending on which division (Building, By-law or Fire Dept.) will be conducting the inspection. 

There may be circumstances where staff will be required to enter the dwelling of a STRA property to confirm compliance with the requirements of the By-law and/or other legislation. If entry is refused and staff cannot confirm compliance it may result in the application being refused.

 What happens if my application is refused, revoked or suspended?
If an application is refused, the owner will be notified and provided with an explanation. Owners will have the opportunity to bring the property into compliance with any regulations while their application is placed on hold. No rentals will be permitted until the license is issued.

If a STRA owner’s license is suspended or revoked, they will no longer be able to operate the STRA. The owner will be notified with an explanation and will be required to return the license.

Owners found advertising or operating a STRA without a required license could face a monetary penalty of $5,000 per day that the STRA is operated/advertised for. 
What happens if a STRA owner or renter contravenes a by-law? Are STRA owners liable to any penalties if their renter(s) contravenes a by-law? 
Yes, the Township can hold both the owner and renter responsible for any by-law contravention. Municipal Law Enforcement Officers have a variety of tools they can use to address by-law contraventions.

The Administrative Monetary Penalty System (AMPS) By-law provides officers with the ability to issue monetary penalties against property owners and renters if a by-law is contravened. To find out more information about AMPS, please refer to the Administrative Monetary Penalty System (AMPS) By-law. 

Occasionally I loan my cottage to friends – is that considered a STR?

A cottage can be loaned to friends or family provided that it is not provided by way of concession, permit, lease, license, rental agreement or similar arrangement. 

Are the rental restrictions applicable to those who use third party rental companies such as Airbnb or a full-service property management company to manage the STRA?

 Yes.

Do the STRA restrictions change if the owner is on site while it is rented?  

 No.
How will unjustified complaints be dealt with?
All By-law complaints will be investigated for merit.  Complaints will be closed where no merit has been found. The Municipality has a policy in place on how to deal with frivolous or vexatious complaints. 
 What is a Demerit Point System?

The Short Term Rental Licensing By-law provides officers with the ability to apply demerit points against an owner if a by-law is contravened. Offences carry various demerit points which expire after three years from the issuance of the demerit points. Once a property accumulates fifteen points within a three-year period, the license will be suspended, and the owner can no longer operate the STRA for a period determined by the Township. To find out more information about the demerit point system please refer to the Short Term Rental Licensing By-law, and review Schedule “B”.

Demerit points cannot be appealed until a maximum of 15 points have been incurred, and the license has been suspended.

What aspects of the Ontario Building Code will be enforced during the application process?

In general, a property will be reviewed to ensure all permits related to an STRA application have had an occupancy certificate issued and file closed.  If any open permits are discovered, inspections will be required, and the provisions of the building code in force at the time of the permit issuance will be applied. For example, regarding battery operated smoke and carbon monoxide alarms, these remain acceptable provided the building constructed predates the code requirement for hardwired smoke and carbon monoxide alarms. In the event a building predates the Ontario Building Code, these buildings will be reviewed with life safety considerations primarily ensuring no element of the building is considered unsafe as outlined by the Building Code Act and Fire Code. 

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