These are selected primary-source examples checked October 12, 2026. Other municipalities have different rules. Use the current municipal page and ask for written confirmation for the property, especially if a lake spans township boundaries.
Rules by municipality
| Authority | Verified starting point | What a buyer still needs |
|---|---|---|
| Huntsville | Licensing programme with a 250-licence cap; licences are non-transferable. | Current availability and exact zoning. Do not assume the seller’s licence transfers. |
| Township of Muskoka Lakes | Licensing and additional Waterfront, R4 and Waterbody Open Space restrictions effective May 1, 2026. | The property’s zone, current restrictions and current fee schedule. |
| Township of Lake of Bays | Licensing under By-law 2024-065; a 4% municipal accommodation tax took effect January 1, 2026. | Licence eligibility, exemptions, collection duties and address-specific permitted use. |
| Minden Hills | Municipal short-term rental rules specifically exclude rentals in sleeping cabins and bunkies. | The main dwelling’s eligibility, occupancy and current licensing requirements. |
What these rules have in common
- Whether the use is permitted in the zone.
- Whether a new licence is available and an existing one can transfer.
- Occupancy, parking, septic and responsible-person requirements.
- Accommodation tax, insurance and ongoing compliance costs.
Talk to Jeff and Emily
Looking at a cottage you plan to rent part of the year? Book a call and we will check the financing side while you confirm the township rules.
Or call or text 416-628-9682
Check before you make an offer
- Ask the listing agent whether the cottage holds a current licence, and whether it can transfer. In Huntsville, licences cannot be transferred.
- Call the township with the exact address and ask about zoning, caps and any waitlist.
- Check whether the shoreline in front of the cottage is a shore road allowance, which has complicated licensing in Haliburton County. See our shore road allowance guide.
- Ask your insurer what rental coverage costs for that property.
- Run conservative numbers in the rental income calculator.
How this connects to your mortgage
Local rules are only half of it. Insured second-home mortgages are built for personal use, and many lenders give little credit for cottage rental income. If renting is central to your plan, you may be looking at an investment property mortgage with at least 20% down. Read renting out your cottage and second home vs investment property mortgages.
Regional guides
For more on buying in these areas, see our pages on Muskoka Lakes, Lake of Bays, Haliburton, the Kawarthas, Prince Edward County and Wasaga and Collingwood.
Questions people ask
Does a short-term rental licence transfer when a cottage is sold?
Do all cottages on a lake follow the same rental rules?
Can I count rental income before getting a licence?
Sources
- Huntsville: Short-term rental licensing (checked 2026-10-12)
- Muskoka Lakes: Short-term rental accommodations (checked 2026-10-12)
- Lake of Bays: Short-term rentals (checked 2026-10-12)
- Lake of Bays: Municipal accommodation tax (checked 2026-10-12)
- Minden Hills: Short-term rentals (checked 2026-10-12)