Current as of September 2026. Short-term rental rules in this region are changing quickly — confirm any figure with the municipality before relying on it.
If you're buying a cottage or waterfront home in Simcoe County or Muskoka with any thought of renting it out short-term, the single most important thing to know is this: the rules are set municipality by municipality, they changed a great deal in 2026, and eligibility is specific to the individual property — not the town. Fourteen of the twenty-four jurisdictions below now require a licence or registration. Fees run from $250 a year to $3,000. In much of Muskoka the number of guests and even the number of summer weekends you can rent are capped, and in at least one township a non-owner-occupied rental isn't a permitted use in a residential neighbourhood at all. Before you count on rental income, confirm the specific property against the municipality below.
Here's what that means in practice — and the full comparison, covering all sixteen member municipalities of the County of Simcoe, the separated cities of Barrie and Orillia, and all six Muskoka municipalities.
Why this matters before you buy, not after
Short-term rental (STR) potential is often part of the math on a recreational purchase. The trap is assuming a property qualifies because "cottages around here get rented all the time." Four things decide it, and all four are property-specific:
- Zoning and licence availability. Several municipalities only permit STRs in certain zones, cap the total number of licences, or impose a minimum distance between licensed rentals — so a licence may simply not be available for a given property even where the zoning fits. In Essa, short-term accommodation is permitted only on Agricultural and Rural land, which puts a whole category of property out of reach before fees are ever discussed.
- Approved bedroom count and septic capacity. Most municipalities that regulate STR occupancy tie the permitted number of guests to the number of approved bedrooms, often with an overall cap on top. What counts as an approved bedroom is settled by building records, permits and the municipality's own licensing calculation — and on rural waterfront the septic system's rated capacity is frequently the binding constraint. A cottage with five sleeping areas may still be a three-bedroom rental on paper. This is the detail that most often surprises buyers.
- Seasonal and frequency limits. Parts of Muskoka now require waterfront properties to sit empty for a set number of nights each summer month and limit you to one rental group per multi-night window in peak season — which directly changes the income model.
- Whether the licence survives the sale. It usually doesn't. More on that below, because it is the assumption that costs buyers the most.
None of this makes short-term renting a bad plan. It makes it a plan worth confirming in writing, from the municipality, before the offer is firm.
Simcoe County — all sixteen member municipalities, plus Barrie and Orillia
Barrie and Orillia are separated cities rather than County members, but both matter to buyers in this market, so both are included. Every figure below is sourced to the municipality's own current materials, linked in the "Official source" column. Confirm the specific property directly, as rules and fees change.
Scroll the table sideways to see every column.
| Area | Where it stands | Key rules | Official source |
|---|---|---|---|
| Adjala-Tosorontio | No dedicated STR program | No STR licensing or registration — the Township's by-law register lists none, and the only business licence class is refreshment vehicles. Bed-and-breakfast use is defined in the zoning by-laws: up to four guest rooms in the Agricultural zone under By-law 03-57, and up to three in the Oak Ridges Moraine zones under By-law 03-56, which governs if the property sits inside the Moraine boundary. Nuisance, parking and property-standards by-laws apply. | adjtos.ca |
| Barrie separated city | No citywide residential STR licensing; MAT applies | A 6% Municipal Accommodation Tax applies to eligible platform-advertised stays of less than 30 nights. Council has directed staff to investigate further regulation, with no timeline committed. Zoning and general property, noise and parking by-laws remain important; get written zoning confirmation before marketing a dwelling. | barrie.ca |
| Bradford West Gwillimbury | No dedicated STR program | No STR licensing or registration; the Town's business licensing by-law covers seven classes, none of them accommodation. Bed-and-breakfast use under Zoning By-law 2010-050 is limited to a detached dwelling that is the proprietor's principal residence, with a maximum of four guest rooms. Noise, traffic, parking and property-standards by-laws apply. | townofbwg.com |
| Clearview | No by-law in force; a draft is out for consultation | Council released a draft STR licensing by-law on 11 May 2026 and held a workshop on 29 July 2026. The following is proposed, not law: a 1 January 2027 start, a $600–$700 fee, a 150-licence cap, a 180-day annual rental limit, two renters per approved bedroom to a maximum of ten, $2M insurance, and a licence that expires on sale. Until something is adopted, only the existing zoning, noise, parking and property-standards by-laws apply. | clearview.ca |
| Collingwood | Annual licence required; max 200 active licences (then a waitlist) | Three classes — Class A, a guest room in the owner's principal residence; Class B, the principal residence itself; Class C, an additional residential unit on the same property. Class B and C: two guests per approved bedroom, to an overall maximum of eight. Class A: up to three guest rooms at two renters each, and the licensee must be on site 8 p.m.–8 a.m. Fees: $1,250 / $2,250 / $2,500 by class. A 4% Municipal Accommodation Tax applies to stays of 28 days or fewer. | collingwood.ca |
| Essa | No licensing program — but the zoning is the most restrictive in the county | Short-term accommodation is controlled entirely through Zoning By-law 2003-50 and is permitted only on Agricultural (A) and Rural (RL) land. It is not permitted in residential zones, and the Township names Airbnb rentals specifically. Where it is allowed: the owner must be present on the property during operation, a maximum of four bedrooms may be rented, and stays are capped at 30 consecutive days. A non-owner-occupied whole-home rental in a residential neighbourhood is not a permitted use here. | essatownship.on.ca |
| Innisfil | Generally regulated as a bed-and-breakfast use | Owner must live in the home; max three guest rooms; no guest-room kitchens; permitted only in eligible zones, and the use must remain secondary to the main residential use. A typical non-owner-occupied whole-home vacation rental generally doesn't fit this model. | innisfil.ca |
| Midland | No dedicated STR by-law in force yet; one is under development | Council directed staff in February 2026 to develop a dedicated STR by-law modelled on Gravenhurst's framework, with a final version expected in Q2 2027 and a public meeting in Q1 2027. The public input survey closes 30 September 2026. Until the by-law is in force, existing zoning, noise, parking, fire and property-standards rules apply — confirm current requirements with Midland Planning. | midland.ca |
| New Tecumseth | No dedicated STR program; an accommodation tax is under consultation | No STR licensing or registration. Bed-and-breakfast facilities are permitted in the Low-Rise Residential, Downtown Core Commercial and Downtown Beeton Commercial zones under Zoning By-law 2021-128. The Town consulted through 2024–25 on a Municipal Accommodation Tax that would cover short-term rentals; no rate has been set and no implementing by-law has been published — confirm the current status with the Town. | newtecumseth.ca |
| Oro-Medonte | Licensing required (By-law 2026-078) for advertised/commercial STRs | Legal operators must be licensed by 30 September 2026; those needing rezoning apply by that date and must be rezoned by 30 January 2027 or cease operating. Non-advertised STR activity doesn't require a licence in residential, agricultural and rural zones where dwellings are permitted. Occupancy limits are set by the licence — confirm the current figure with the Township. | oro-medonte.ca |
| Orillia separated city | Annual licence required; max 150 licences | Licensing has been in force since 1 January 2024 under Chapter 730 of the City's Municipal Code, for rentals of fewer than 28 consecutive days, with a cap of 150 operating short-term rentals at any one time and a demerit-point enforcement system. On properties served by septic, maximum occupancy is determined at the time of application. The published licence fee is $2,000 for 2024 — confirm the current year's fee with the City. A 4% Municipal Accommodation Tax applies. | orillia.ca |
| Penetanguishene | Annual licence; permitted zones or proven legal non-conforming use | New STRs are allowed as-of-right only in the SA1, SA2, Rural and Downtown/Waterfront zones. Fee $500 for two rooms or fewer, $900 for three or more — the by-law counts rooms, not bedrooms. Insurance ($2M), site and floor plans, a responsible person and septic documentation required. | penetanguishene.ca |
| Ramara | Annual licence required (rentals of less than 28 consecutive days) | $3,000/yr. Two guests per legal bedroom, to a maximum of eight overnight guests overall — the eight-guest cap governs beyond four bedrooms. A new licensed property must be at least 300 m from another licensed STR; inside that buffer, applicants go on a waiting list. Fire, building, septic and zoning compliance required, and Township accounts must be in good standing; fireworks prohibited. | ramara.ca |
| Severn | No licence required yet (by-law approved June 2026) | Program takes effect 1 January 2027; applications and a program guide are expected late fall 2026. Until then, zoning, noise, parking, fireworks, open-air burning and property by-laws apply. The Township is also implementing an Administrative Monetary Penalty System to support enforcement. | severn.ca |
| Springwater | Annual licence required (By-law 2024-068, as amended) | Rentals of fewer than 28 consecutive days. Minimum two-night stay unless owner-occupied. Max two guests per approved bedroom, 10 overall (excluding children 12 and under). Responsible person must attend within one hour. Zoning, $2M insurance, fire and WETT documentation and building compliance apply; the site plan must show septic and well locations where applicable. | springwater.ca |
| Tay | No dedicated STR licensing program at present | Existing zoning, noise, parking and property-standards by-laws apply. Obtain written zoning confirmation before operating or advertising. | tay.ca |
| Tiny | Annual licence mandatory; max 300 licences | 2026 renewal $1,750; new application $2,000. Max two renters per approved bedroom, 10 overall — plus a separate cap of one daytime guest per approved bedroom. Minimum six consecutive days 15 April–15 October; from 16 October–14 April, no more than one rental per six-day period. Max 92 rental days a year. The licence expires on the sale or transfer of the premises. | tiny.ca |
| Wasaga Beach | Licence required (By-law 2026-08, as amended by 2026-17) | Applies to stays of 30 days or fewer; existing operators were required to apply by 1 April 2026. Three classes (bed-and-breakfast, motel, rental cabins/cottages). The owner or responsible person must respond within 30 minutes and attend the property within one hour if requested; the licence number must appear in all advertising; insurance and class-specific requirements apply. | wasagabeach.com — By-law 2026-08 |
The six Muskoka municipalities
Muskoka has some of the region's strictest waterfront rental rules, and the seasonal limits are the part that most changes a rental income model. If you're weighing a purchase here, the community pages cover what each area is actually like to own in.
Scroll the table sideways to see every column.
| Area | Where it stands | Key rules | Official source |
|---|---|---|---|
| Bracebridge | Annual licence required (every STR of less than 28 consecutive days) | $1,500/yr, plus inspection costs — building/property-standards and fire inspections are billed hourly. Only one building with bedrooms on a property may be the STR. Responsible person must respond within one hour. A 4% Municipal Accommodation Tax applies. | bracebridge.ca |
| Georgian Bay | Annual registration required | Light host (21 rental days or fewer a year): $250; regular host (22 days or more): $1,000, plus a $100 building review for new applications — a 10% discount applies with an approved sustainability plan. Max two people per guest room. $2M insurance, septic documentation, a waste plan and a responsible person able to attend within 60 minutes required. Water-access-only properties can qualify, subject to posting an emergency-services statement in the dwelling. | gbtownship.ca |
| Gravenhurst | Licence required before operating or advertising | 2026 fee $800; licence runs 1 January–31 December. A house or cottage dwelling unit may be rented, but sleeping cabins and bunkies, trailers, tents, barns, garages and sheds cannot. Zoning, septic capacity, parking and legal construction are reviewed, and arrears or outstanding fines are grounds for refusal. A 4% Municipal Accommodation Tax applies. | gravenhurst.ca |
| Huntsville | Annual licence required; max 250 licences | Owner must have held the property for one full year before applying. 2026 fee $750 (principal residence) or $1,000 (secondary residence); renewals $375/$750. New applications open 1 January and must be complete, including the on-site inspection, by 31 October. New STRs are prohibited in the Urban Low Density precinct; existing ones there may continue, even through a change of ownership, but the exception lapses after two years of non-operation. | huntsville.ca |
| Lake of Bays | Licence required (By-law 2024-065 + Community Planning Permit rules) | Property must be in a zone where STR use is permitted and satisfy setbacks. The application includes site and floor plans, insurance, septic information, a responsible person and fire-alarm documentation, followed by an inspection. Operating or advertising while awaiting approval is not permitted. Allow at least 45 days for a new application, 30 for a renewal. | lakeofbays.on.ca |
| Muskoka Lakes | Annual licence required (By-law 2025-049) | $1,000/yr in the Waterfront or R4 Community Waterfront Residential zones; $500 in other zones. Two occupants per bedroom, unless the septic system was designed and built under the Ontario Building Code for a higher occupancy (children two and under don't count). In the Waterfront Residential, R4 and Waterbody Open Space zones, a property must take seven consecutive nights off in each of June, July and August, and may host only one rental group per six-consecutive-night period from the Friday before Victoria Day to the Tuesday after Labour Day. These seasonal rules took effect 1 May 2026. | muskokalakes.ca |
The patterns worth understanding
Read across all twenty-four and a few things stand out that matter more than any single fee:
- The licence does not come with the house. This is the assumption that costs buyers the most, and it is wrong almost everywhere. Tiny's by-law expires the licence "upon the sale or transfer of the Premises." Collingwood's expires on sale too — and explicitly on the addition of a co-owner as a joint tenant or tenant-in-common. Huntsville's licences "cannot be assigned or transferred," and a new owner must hold the property a full year before they may even apply. Ramara's states plainly that a licence is not transferable. Where a cap or waiting list is in play, none of the by-laws I could read gives a purchaser any priority. Never assume a property's rental history transfers with the keys — confirm in writing what the buyer will actually be able to obtain, and when.
- Occupancy usually turns on approved bedrooms, and on rural waterfront the septic often decides that. Most municipalities that set an occupancy formula use two per approved bedroom, frequently with an overall cap on top. What counts as approved is a matter of building records, permits and the municipality's own calculation, and septic design capacity can be the decisive constraint. Check all three on the specific property before you model rental income.
- Some places don't licence you — they zone you out. Essa permits short-term accommodation only on Agricultural and Rural land, with the owner present. Innisfil channels it into bed-and-breakfast rules that require the owner to live there. In both, a licensing fee is beside the point: the use itself isn't permitted for a non-owner-occupied property in a residential neighbourhood. "No STR by-law" is not the same as "no restrictions."
- Getting in is getting harder. Licence caps — Tiny 300, Huntsville 250, Collingwood 200, Orillia 150 — plus minimum-distance buffers (Ramara's 300 m) and zone restrictions mean a licence isn't always available even where the zoning fits.
- Muskoka's seasonal "rest" rules reshape the income model. Muskoka Lakes' summer nights-off and one-group-per-window rules directly reduce peak-season rentability. That's not a reason to avoid Muskoka — it's a reason to model income on the actual permitted calendar, not a full summer.
- Accommodation taxes are spreading. A 4% Municipal Accommodation Tax now applies in several Muskoka towns, in Collingwood and in Orillia; Barrie's is 6%; New Tecumseth has consulted on one without setting a rate. Build it into the numbers.
- These rules are new and still moving. Several of these by-laws were adopted in 2026, at least one has already been amended, Severn's program starts 1 January 2027, and Clearview and Midland both have by-laws in progress. Treat any comparison — including this one — as a starting map, and confirm the current rule before you rely on it.
What to verify before you buy
Whether or not short-term renting is your primary plan, confirm these on any property where it's part of the thinking:
- Zoning permits STR use at all, and a licence is actually available — not capped out, not inside a buffer, not restricted to zones the property isn't in.
- The approved bedroom count, the septic system's rated capacity, and the maximum occupancy that flows from both.
- Whether the existing licence, if there is one, survives the sale — and if not, what the buyer must do, and how long the wait is.
- Any seasonal or frequency limits, especially in Muskoka.
- Fees, insurance and inspection requirements, and the application timeline — some take 45 days or more.
- Whether the municipality treats the use as an STR or a bed-and-breakfast, which usually requires the owner to live there.
- Any condominium or community rules, which can prohibit STRs regardless of the municipal by-law.
Get the answers in writing from the municipality before your conditions come off. It's a short exercise that prevents an expensive surprise.
A quick note on where this fits
I work waterfront and estate properties across Simcoe County, Muskoka, Parry Sound, Kawartha Lakes and Haliburton, and short-term rental eligibility comes up on a large share of recreational purchases. When it matters to a client's plan, confirming it early — the approved bedroom count, the licence availability, whether it transfers, the seasonal limits — is part of the due diligence I walk buyers through before an offer is firm.
If you'd like to talk through a specific property, reach me directly.
Bill Jackson, Sales Representative
Lake Country Real Estate Team · eXp Realty, Brokerage
(705) 242-5764 · Book a consultation
This guide is general information, current as of September 2026, and is not legal advice. Short-term-rental eligibility is property-specific; zoning, approved bedroom count, septic capacity, building and fire compliance, licence availability and transferability, condominium rules and municipal amendments should be confirmed directly with the municipality before purchasing, advertising or accepting bookings.
