Short-term rental rules in Muskoka Lakes, Ontario

The rules today

Who can host	Anyone renting a premises for 28 consecutive days or less needs a licence, whether or not the owner is on site or a manager is used. Owner (or tenant with written owner consent), age 18+. Only one licence per premises. Not allowed in vehicles, trailers, tents, vessels, community housing, or where zoning prohibits STRA. Source
Where it is allowed	Township-wide licence; not allowed in buildings where Zoning By-law prohibits STRA. Extra summer rules apply only in R4, Waterfront Residential and Waterbody Open Space zones. Source
Limits	Max 2 persons per bedroom (children 2 and under not counted); higher occupancy possible if septic proven designed for it. Parking must follow Zoning By-law. In R4/waterfront/WOS zones from May 1, 2026: 7 consecutive nights off in each of June, July, August, and no more than one primary renter per 6-night period from Friday before Victoria Day to Tuesday after Labour Day. Owner/responsible person must be on site within 1 hour. Min $2M liability insurance. Source
Licence process	Apply online via Cloudpermit. Licence lasts one year from issue; renewal notice emailed 60 days before expiry (per operator page); renewal needs acknowledgement form, renters code of conduct, responsible person declaration, insurance. Licence number must be on every online advertisement; licence displayed prominently in the STRA. Open building permits must be closed first. Safety inspection possible at Director's discretion. Original deadline to apply for existing operators was Dec 31, 2025. Source
Fees	Application $1,000/year for Waterfront (WR), WOS or R4 zones; $500 for all other zones (operator page). Renewal amount not stated. Inspection and appeal fees set by Fees and Charges By-law 2025-136. Source
Taxes	The town's official pages do not state this. Check with the town directly.
Penalties	The Township's operator page says operating without a licence could bring a $5,000 penalty on a first offence; that amount is not in the by-law itself. The by-law allows court fines of up to $100,000, up to $10,000 per day for continuing offences, and administrative penalties. Demerit points apply: for example 10 points for operating without a licence or for over-occupancy, with 15 points leading to suspension. Source

What changed in Muskoka Lakes

• May 1, 2026

  Summer Monthly Break and Summer Rental Frequency rules (s.5.6) took effect for R4, waterfront and WOS zones

  What hosts should do: Block 7 nights in each of Jun/Jul/Aug and limit to one booking per 6 nights in season if in those zones.

  Source

• December 31, 2025

  Deadline for all existing operators to apply for a licence (by-law s.2.2)

  What hosts should do: Operating or advertising without licence now carries penalties.

  Source

• July 28, 2025

  Cloudpermit application portal launched (per Township news; page not re-fetched)

  What hosts should do: Apply via Cloudpermit.

  Source

Sources

• STRA Licensing By-law 2025-049 (passed Apr 16, 2025; s.5.6 effective May 1, 2026) (page updated enacted 2025-04-16; listed modified 2025-04-25)
• For Operators: Applications & Renewals (page updated no date shown (footer 2026))
• STRA program overview (page updated no date shown (footer 2026))
• Media release: Updates to STRA Licensing By-law (page updated 2025-03-21)
• Common offences and penalties (PDF) (page updated no date shown)
• Fees and Charges page (links By-law 2025-136) (page updated no date shown)

General information for hosts, not legal or tax advice. This page summarises the official sources above as of November 12, 2026. Check the source and your town before you act. See an error? Tell us and we will re-check it.