Short-term rental owners voice concerns over Muskoka Lakes proposed bylaw

The Township of Muskoka Lakes is debating new rules that govern short-term rental accommodations(STRA), addressing concerns related to rental property management and community impact in the face of a notable apprehension among some rental property owners.

If approved, the stricter guidelines would require STRA owners to:

• Apply for a licence to operate;
• Set the minimum number of rented nights during the peak season to seven and three nights during the rest of the year;
• Limit the number of renters to two per bedroom.

Under the proposed changes, the STRA needs to be owner-occupied for 50 per cent of the peak season, and 50 per cent of the year overall.

Violators would be subject to demerit points. A total of 15 demerit points would mean a licence suspension.

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The bylaw proposes a licensing application fee of $1,000 for 24 months and a $500 inspection fee if deemed necessary.

Jayne McCaw, president of Jayne's Luxury Rentals, expressed support for responsible rental management and noted reservations regarding the proposed licensing system, calling it "overly complicated and expensive" and warning it could negatively affect the local economy.

"I think that the $1,000 fee is completely unreasonable. It looks like a money grab, and the perception is that the Township has a negative view of owners who rent their properties. In the real sense, the Township should be praising owners who rent when they can't be at their cottage as it brings incremental local economy revenue. I think $250 is a reasonable license fee," McCaw stated. "The price of this is very high and should only be levied upon owners who are negligent in some regard."

Former Muskoka Lakes mayor Phil Harding took to social media earlier this month about the proposed bylaw, noting the $100,000 fine for failing to get a licence to operate, adding that if unpaid, that fine would be added to the individual's tax bill. "Remember that ultimately, if you don't pay your taxes, they can, and they will sell your property to recoup the money."

Harding continued, "There are thousands of good renters, and this bylaw may present unintended problems that affect all properties," he said. "There's a lot of good in this bylaw, but there are also other options to control short-term rentals that won't potentially negatively impact all properties."

The proposed changes aim to address concerns related to the impact of short-term rentals on the community, including noise disturbances, property maintenance, and neighbourhood character. The Township of Muskoka Lakes invites feedback from residents and stakeholders as it considers the new measures.