Do you need a licence? Are there permits required? Will I be fined for my renter’s violations? Learn more about the rules in various Muskoka municipalities …

Short-term rental properties – and the rules surrounding them – have been a hot topic for well over a year and even were a big issue in Muskoka’s 2022 municipal elections.

Most Ontario tourist hotspots have allowed short-term rental accommodations within their municipalities, though a couple originally tried banning them all together.

Though most Muskoka municipalities have already addressed this issue through updating existing by-laws or creating new ones, the Township of Muskoka Lakes is currently doing a thorough examination of how to properly manage issues arising from short-term rental accommodations (STRAs) in their community.

They are examining licensing options, permits, the potential for a Municipal Accommodation Tax (MAT), and the consequences of violating the rules – as well as what type of enforcement staff will be needed – as both councillors and staff have heard complaints and concerns from area residents (both permanent and seasonal) about STRAs on the lakes.

While public meetings and more consultation will be done in Muskoka Lakes over the next few months, likely resulting in a STRA by-law, those looking to rent their properties in other parts of Muskoka should have an idea of the rules.

To make things a bit easier for our readers, we’ve broken down a few highlights (and added links to more information) for the other Muskoka municipalities.

Bracebridge

(Changes forthcoming – we will update once new by-laws are passed)

• Short-term rental accommodations must be registered with the town and have an operators’ licence.
• STRA units can be operated anywhere in the municipality provided they are licenced.
• Any by-law contraventions that arise are subject to the licence being suspended or revoked
• No Municipal Accommodation Tax (MAT).
• Every licensee is required to have $2 million in public or general liability business insurance naming the Town of Bracebridge as an additional insured.

More info is available at: https://engagebracebridge.ca/str

Gravenhurst

• Short-term rental accommodations must be registered with the town and have an operators’ licence.
• STRA units can be operated anywhere in the municipality provided they are licenced.
• Have established an Administrative Monetary Penalty System (AMPS) by-law which provides set fines and fees if/when by-law violations occur.
• They also have established a Municipal Accommodation Tax to be paid by the STRA operators.

More information available at: https://www.gravenhurst.ca/en/town-hall/short-term-rental-accommodations.aspx

Huntsville

• Short-term rental accommodations must be registered with the town and have an operators’ licence.
• The Town’s zoning by-law was amended to permit operation of STRAs in specific zones.
• Town staff will inspect STRA units to ensure they are up to code.
• They have a process that will allow the establishment of a committee to hear appeals should licences not be approved, be suspended, or revoked due to by-law violations.
• Have established an Administrative Monetary Penalty System (AMPS) by-law which provides set fines and fees if/when by-law violations occur.
• They also have established a Municipal Accommodation Tax to be paid by the STRA operators.
• Three strike penalty system is in place to

More information is available at:
https://www.huntsville.ca/en/home-property-and-planning/short-term-accommodation-rentals.aspx

Lake of Bays

• Short-term rental accommodations must be registered with the town and have an operators’ licence.
• The Town’s zoning by-law was amended to permit operation of STRAs in specific zones.
• Classification system (A, B, C) of units with different fees attached to each class.
• They have established a maximum of nights rented per year for each unit.
• There is a maximum number of people allowed per rental per night.
• There is also a minimum number of nights per rental unit set.
• Township staff will inspect the STRA to ensure it is compliant with the appropriate by-laws, including fire and building codes.
• They have a process that will allow the establishment of a committee to hear appeals should licences not be approved, be suspended, or revoked due to by-law violations.
• Have established an Administrative Monetary Penalty System (AMPS) by-law which provides set fines and fees if/when by-law violations occur.
• Violations will be subject to a demerit point penalty system.
• The do NOT have a municipal accommodation tax in place.

Learn more at: https://www.lakeofbays.on.ca/en/municipal-services/short-term-rentals.aspx

As things continue moving forward, we’ll update everyone on what’s happening in the Township of Muskoka Lakes and eventually add their by-law information to this page.

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