Heads up, Muskoka Lakes’ cottagers—the Township’s incoming short-term rental (STR) bylaw won’t be going into effect any time soon.
The bylaw—originally intended to be implemented in January of this year—is now set to launch on May 1, 2026. STR owners will be permitted to advertise and operate their rental properties through to the end of the year, and are required to submit licensing applications by December 31.
Technical issues between the Township’s existing online platform and the new licensing system’s third-party provider are to blame for the delay, according to Muskoka Lakes’ mayor Peter Kelley.
The software provider, Granicus—which is used by a number of other cottage-country regions, such as Tiny Township—manages the back-end management and enforcement for the licensing program.
“It was everyone’s intention to have this thing up and running by now,” says Kelley. “Sadly, it’s going to take more effort than we anticipated.”
While Kelley says that there’s a possibility that the technological challenges could be resolved as soon as the end of May, council decided that that’s too late in the season to impose new requirements on an industry that relies on bookings made months ahead of time.
In the meantime, the Township has hired an additional staff member dedicated to STRs for the summer.
One of the key reasons why the bylaw was created was to promote safety for STR operators, renters, and neighbouring properties. Since these concerns are primarily related to fire safety, building code, and use compliance, such as noise—all things that are already monitored by the Township—Kelley says the delay won’t amount to any further risks.
“When these rentals were built, they were built to code,” he says. “The bylaw adds new layers on top, but we’re not creating new restrictions. We’re just finding a better tool to enforce them.”
The licensing system will give the Township a better sense of where exactly rental properties are located and get ahead of complaints. A key component of the new bylaw is a one-hour response time, where the rental operator or a property manager must be able to arrive on-site within an hour of a bylaw complaint being made.
The bylaw also sets an occupancy limit at two people per bedroom, though operators can request to increase this number if their septic system can accommodate. The Township is simultaneously beginning a septic re-inspection program this year, wherein every property will be scheduled for inspection.
Alongside required licenses, the bylaw includes a mandatory “summer monthly break” for all STRs. Rental operators will be required to halt all rentals for one week in June, July, and August. Additionally, only one rental group can stay in an STR every six nights.
“I’m disappointed that we aren’t able to have it up and running this year, but it will be next year,” says Kelley. “In the meantime, we’re going to continue with as much rigour as we can to respond to reported bylaw violations.”
The Township expects to launch the online licensing application portal by this summer.
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