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Annual licence; renewal notice 60 days before expiryMuskoka Lakes short-term rental licence: fees, ad rules and summer limits
Muskoka Lakes requires a Short Term Rental Accommodation (STRA) licence for stays of 28 consecutive days or less (By-law 2025-049). The licence number must appear on every online advertisement. Waterfront and R4 properties face summer rental-frequency limits.
Key rules at a glance
| What it's called | Short Term Rental Accommodation (STRA) Licence (By-law 2025-049) [source] |
|---|---|
| Who needs it | Anyone offering temporary accommodation for 28 consecutive days or less. Hotels, motels, B&Bs, camps and rooming houses are excluded. [source] |
| Fee | $1,000 per year for Waterfront (WR), Community Waterfront Residential (R4) and Waterbody Open Space zones. $500 per year for all other zones. [source] |
| Term / renewal | Annual. Valid one year from date of issue. The Township emails a Notice of Renewal 60 days before expiry. [source] |
| Insurance | Proof of liability insurance of at least $2,000,000 per occurrence that identifies an STRA on the premises (By-law s.4.1(k)). Current proof is required at every renewal. [source] |
| Ads | The licence number must be displayed on each online advertising method (s.5.7(d)), and the licence must be displayed inside the premises. [source] |
| Summer rules (WR/R4/WOS only) | 7 consecutive nights off in each of June, July and August. One rental group per 6-night period from the Friday before Victoria Day to the Tuesday after Labour Day. [source] |
| Occupancy | 2 persons per bedroom unless septic design supports more. One licence per premises. [source] |
| Penalties | Advertising or operating without a licence: a monetary penalty of $5,000 per day, per the Township FAQ. AMPS penalties plus demerit points; 15 points in 3 years means suspension. [source] |
| Where to apply | Online through Cloudpermit. Licensing Officer: 705-765-3156 ext. 357. [source] |
Deadlines
- Rolling: Muskoka Lakes: 1 year from your issue date. Renewal notice is emailed 60 days before
Watch out
There's no single township-wide renewal date. Each licence runs one year from its own issue date, so most licences issued in late 2025 will come up for renewal in late 2026. Check your own licence.
Tax angle (federal)
Since 2024, the Income Tax Act (s.67.7) has denied deductions for expenses tied to a non-compliant short-term rental. That means a rental of under 90 consecutive days in a place that doesn't permit it, or that doesn't meet all provincial and municipal registration, licence or permit requirements. The denial is prorated by non-compliant days, and the normal reassessment time limits don't apply.
Sources: CRA: Changes to rules for eligible deductions from short-term rental income · Income Tax Act s.67.7 (Justice Laws). Talk to an accountant about your situation.