Running cottage rentals in Muskoka Lakes, where the summer calendar is written into the by-law
If you manage or clean cottage rentals in the Township of Muskoka Lakes, every stay of 28 nights or less now needs a township licence under By-law 2025-049. On the waterfront the by-law also shapes the season: seven nights in a row off in each of June, July and August, and from Victoria Day weekend to the Tuesday after Labour Day, one rental group per six-night period. Upbridge's AI operations assistant, Cleo, works over WhatsApp with vacation rental operators and cleaning companies and organizes the cleanings and the inventory for each place.
The rules here
These are the township's rules, which apply whether the cottage is booked directly, through Airbnb or through a full-service management company. We read the township's pages on October 24, 2026, and amounts are in Canadian dollars.
| Topic | What it says | Status | Since | Source |
|---|---|---|---|---|
| Licence | Any premises offered for 28 consecutive days or less needs a short-term rental accommodation licence, and only one licence is issued per premises, so separate buildings cannot go to separate groups at the same time. The fee is $1,000 a year in the Waterfront and R4 zones and $500 a year in all others, and the licence is renewed every year. | In force | By-law 2025-049 | Township of Muskoka Lakes |
| Occupancy | Two people per bedroom. The township may allow more if the owner shows the sewage system was designed and built under the Ontario Building Code for a higher number. Sleeping cabins, bunkies and second-storey boathouses can be rented if they are habitable. | In force | By-law 2025-049 | Township of Muskoka Lakes |
| Summer breaks | In the Waterfront Residential, Community Residential (R4) and Waterbody Open Space zones, each of June, July and August needs seven consecutive nights without a rental, inside the month. From the Friday before Victoria Day to the Tuesday after Labour Day, only one rental group is allowed per six consecutive nights, unless the stays are longer than six nights. | In force | By-law 2025-049 | Township of Muskoka Lakes |
| On the premises | The licence number goes on every advertisement, the licence hangs in a visible place inside, and the renter's information package stays where guests can find it. A renewal asks again for the licensee acknowledgement, the renter's code of conduct, the responsible person declaration and current proof of insurance. | In force | By-law 2025-049 | Township of Muskoka Lakes |
Before the by-law took effect, Cottage Life reported a one-hour response time for the operator or property manager to reach the cottage after a complaint, and Storeys reported that a licence would be revoked at 15 demerit points. The township's own pages did not state either when we read them, so check the by-law before relying on them. This is not legal or tax advice, and Upbridge does not file anything for you: no registrations and no tax returns.
How it works on the ground
The summer rules turn July into a planning problem. A waterfront cottage that used to take Saturday-to-Saturday weeks can still do that, because stays longer than six nights need no gap, but shorter stays need six nights between groups, and somewhere in the month seven nights have to stay empty. The township says the week off can run Tuesday to Tuesday or any other seven nights, as long as it does not cross into the next month.
The owner and their family can use the cottage during the week off, so the empty week can also be the family's week at the lake. An earlier proposal, summarized by Sorbara Law on Mondaq in November 2024, would have allowed rentals on only half the summer days and set a seven-night minimum from Victoria Day to Labour Day; the by-law the township adopted uses the monthly week off and the six-night rule instead.
Cottage Life reported in May 2025 that the township was also starting a septic re-inspection program for every property. Since occupancy above two per bedroom depends on the septic design, the septic paperwork and the licence belong in the same file.
Where Upbridge fits
A cottage with a bunkie and a boathouse is three buildings to clean between groups. Upbridge reads each checkout from Guesty, Hostaway, Lodgify, Uplisting or an iCal link and opens a cleaning task with a room-by-room photo checklist that can cover each building, and the licence on the wall and the renter's information package can be on the list too.
Cottages on the water burn through propane, firewood and dock towels, and a run into town takes time. Inventory per property subtracts what each group used and shows what to bring before the next arrival. Guests get the guest guide on their phone with the road in, the 911 sign to look for, and the quiet hours.
If you run a cleaning company in Muskoka Lakes
With a required week off in every summer month and gaps between short stays, the summer schedule has holes that move from cottage to cottage. The cleaning company account shows every owner's changeovers on one dated calendar, so you can fill a crew's week around those gaps, and the owners stay your clients.
Questions about cottage rentals in Muskoka Lakes
Do I need a licence to rent my cottage in Muskoka Lakes?
Yes, for any rental of 28 consecutive days or less, under By-law 2025-049. The licence costs $1,000 a year in the Waterfront and R4 zones and $500 a year elsewhere.
What is the summer monthly break in Muskoka Lakes?
In the Waterfront Residential, R4 and Waterbody Open Space zones, a short-term rental must take seven consecutive nights off in each of June, July and August, and the week cannot straddle two months.
How many guests can stay in a Muskoka Lakes short-term rental?
Two per bedroom, unless the owner shows the township that the sewage system was built for more. Only one licence is issued per property, so the cottage, bunkie and boathouse go to one group at a time.
More questions
Does using Airbnb or a management company change the Muskoka Lakes rules?
No. The township says the rental restrictions apply to properties managed through third-party platforms and full-service management companies, and also when the owner is on site.
Sources
Checked on October 24, 2026
- Township of Muskoka Lakes, “Short Term Rental Accommodations”, undated, read October 24, 2026.
- Township of Muskoka Lakes, “For Operators: Applications & Renewals”, undated, read October 24, 2026.
- Cottage Life, “Township of Muskoka Lakes short-term rental bylaw delayed until 2026”, May 7, 2025.
- Storeys, “Muskoka's short-term rentals will now require a licence”, November 14, 2024.
- Mondaq, “New short-term rental bylaw for Muskoka properties: a comprehensive overview”, November 19, 2024.