As unruly guests disturb the peace, Muskoka Lakes considers licences for short-term rentals

The Township of Muskoka Lakes, which covers a popular part of Ontario's cottage country, is moving one step closer to clamping down on short-term rentals like Airbnbs and VRBOs in the area. 

At a public meeting Tuesday, residents will get to share their thoughts on a proposed bylaw that would require cottage owners to apply for a licence allowing them to rent their properties. The proposed bylaw classifies a short-term rental as a dwelling used as accommodation for 28 days or less.

For cottage owners like Todd Perry, whose family has enjoyed a lake in the area for seven decades, it's about time something is done about short-term rentals. His family cottage is next to a property that's frequently rented out.

"Your kids come up to you and say, 'Dad, I don't feel comfortable sitting on the dock because of the bachelor party that's being held beside us,'" he said. "We have to deal with up to 12 or more people every weekend beside us. It's like a commercial hotel. I go up there to relax." 

He said they face issues like DJs blasting music, bottles and cans rolling in the water and pets running wild.

Meanwhile, some cottage owners, and rental agencies that represent them, argue the problems with short-term rentals can largely be blamed on a few owners who don't care about preserving peace and quiet. They say bylaws like the one being proposed could lead some owners to choose not to rent their cottages, leading to economic consequences in the region. 

The proposed bylaw would mean owners need to pay a $1,000 application and $500 inspection fee to receive a licence. The licences would then be subject to a demerit point system, meaning if 15 demerit points are accrued, a licence is revoked. 

Property owners would also only be able to list short-term rentals for half the days in a calendar year, and between Victoria Day and Labour Day, each individual stay would need to be at least seven consecutive nights.

Muskoka Mayor Peter Kelley says that would help limit unruly behaviour, which has become more of a problem as short-term rentals have become big business. He says most renters are responsible, but some are "literally running unsupervised commercial resort hotels."

"Renting your property here, and this is probably controversial, it's a privilege," Kelley said. "And in order to continue to enjoy that privilege, we expect compliance with our normal bylaws for behaviour."

Along with licence fees and rental limitations, the drafted bylaw would also require property owners to have someone close enough to respond to complaints within an hour.

Phil Harding, who works in real estate and served as mayor of Muskoka Lakes from 2018 to 2022, doesn't think every owner who rents their cottage should have to spend money on a licence fee. 

He would rather see people forced to apply for a licence after they accrue demerit points than have everyone forced to pay upfront to rent their cottage.

"I think the opportunity to put some form of a bylaw in place is a good concept. The issue I have is that we are attacking a small problem by using a sledgehammer," Harding said. "There'll be a lot of unintended consequences."