Muskoka Lakes will consider licenses for short-term rentals due to unruly guests disturbing the peace

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

At a public meeting on Tuesday, dozens of residents shared their thoughts on a bill that would require cottage owners to apply for a license to allow their properties to be rented out. The proposed law would classify short-term rentals as accommodations that are used as residential accommodation for 28 days or less.

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

“When your kids come up to you and say, 'Dad, I don't feel comfortable sitting on the dock because of the bachelor party we're having,'” he says. “Every weekend we have to work with 12 or more people. It's like a commercial hotel. I go there to relax.”

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

Additionally, some cottage owners and the rental agencies that represent them believe that short-term rental problems can be largely blamed on a few owners who don't care about peace and quiet. They say a law similar to the proposed law could discourage some owners from renting out their cottages and cause economic damage in the area.

How will the law change short-term rentals?

The proposed law would mean owners would have to pay a $1,000 application and $500 inspection fee to get a license. Licenses are then subject to a demerit point system, meaning that if 15 demerit points are accrued, the license will be revoked.

Owners can only list half-a-day short-term rentals per calendar year, and each individual stay must be at least seven consecutive nights between Victoria Day and Labor Day.

Muskoka Lakes Mayor Peter Kelly said it would help limit the clutter that has become a problem as short-term rentals become big business. Most tenants are responsible, he said, but some “run unsupervised commercial resort hotels.”

“Rental ownership here, and it can be controversial, is a privilege,” Kelly said. “And to continue to exercise that privilege, we expect to follow common law rules of conduct.”

Along with license fees and rental restrictions, the draft bill would require property owners to have someone close enough to respond to complaints within an hour.

Tenants say the law is too extreme

Several local short-term rental properties spoke at a public meeting Tuesday and said they could support the regulation, but the proposed law would penalize responsible landlords.

Cheryl McMillan said she relies on additional rental income to help cover costs associated with her property.

He said the proposed seven-night minimum stay requirement would limit his business. In the eight years he's been renting, he said he's booked a week's stay three times.

He said that the settlement has the power to maintain peace.

“We don't need new laws to manage parking, noise or waste as they relate to (short-term rentals),” he said. “Instead, we need legal staff to implement what we already have.”

Andy Milovanovich asked why short-term rentals are focused on parties and noise disturbances. Milovanovic owns a local party rental business in Cottage Country, and says his biggest orders each summer are from property owners, not renters.

Jayne McCaw, owner of Jayne's Luxury Rentals, which provides short-term rentals to Muskoka property owners, says many clients have been hesitant to list their cottages this year because of licensing fees.

He believes owners who rent through companies like his should be exempt because they are licensed to operate under Ontario's tourism industry act.

McCaw agrees with aspects of the law, but fears it could affect the local economy. For every dollar someone spends on lodging, he says, two dollars are spent on the local economy.

“Let's say they rent for $500 a night. That means $1,000 of that extra money doesn't go to Muskoka,” he said.

But Mayor Kelly said the license would only work if all landlords paid a fee to cover administrative costs.

Laura Ender, who lives near two AirBNBs, told the council she supports the bill as it's being drafted, even though it would make it harder for neighbors to supplement their income by renting out. He said that they put their financial interests above the welfare of society.

“Why have we allowed housing to become commercial entities that affect the entire community? “Although they are not zoned as hotels or motels, they operate as such,” he said.

The Muskoka Lakes Association represents 2,000 cottagers in the area, and Vice President Ken Pierce said the group sees both sides of the issue.

“Some of them have to rent out their cottages to help with repairs and property taxes and continue to own it,” he said, but often at the expense of peace and quiet.

“For some people, it's somewhere near you. It can be scary.”