This article was written and submitted by Jayne McCaw, Founder of Jayne’s Luxury Rentals in Port Carling, Ontario.
Ontario’s cottage country is more than a scenic getaway; it’s a critical engine for our province’s tourism economy. Muskoka alone welcomes over three million visitors annually, many of whom stay in short-term rental properties that allow families to gather, explore, and reconnect with nature. As the Founder of Jayne’s Luxury Rentals, which manages over 300 premium properties across Ontario, I’ve seen firsthand how essential short-term rentals have become — not just for guests, but for communities.
With the recent rollout of new short-term rental licensing regulations, many owners and guests are asking: What does this mean for the future of cottage tourism?
The answer doesn’t have to be negative. In fact, licensing — done right — can raise standards, enhance guest safety, and support local economies. But policy without nuance runs the risk of driving responsible operators out of the market and reducing much-needed tourism revenue at a time when Ontario families are choosing to travel closer to home.
This year, those stakes are even higher as tariffs increase the costs of international travel and exchange rates fluctuate. In fact, 77% of travellers said they plan to stay within Canada this summer. In Ontario, domestic visitors are the backbone of the tourism industry, accounting for approximately 62% of all tourism spending. This highlights the growing importance of local travel, especially in years when international tourism faces headwinds.
As a result, Ontario’s cottage regions are experiencing unprecedented demand. Short-term rentals are helping absorb an influx of visitors, sustaining local businesses, seasonal employment, and the broader tourism economy. Ensuring these rentals are safe, well-managed, and compliant is not just a regulatory matter–it’s an economic one.
At Jayne’s Luxury Rentals, we support regulation. We want to see a professionalized short-term rental industry that ensures safety and compliance standards, as well as addresses concerns like excessive occupancy, waste, noise, and parking issues. Most importantly, regulation provides a clear process for resolving issues with fines for owners who continually have problem rentals to operate, otherwise known as "ghost hotels". That’s why we’re actively helping our owners obtain licenses, navigate the paperwork, and stay compliant. But the system must reward good actors and penalize the bad — not treat them all the same.
Licensing sets clear expectations for safety, insurance, and tax compliance, and it allows municipalities to track rental activity and prevent issues such as overcrowding or unlicensed operators who undermine both neighbours and the legitimate market. When owners meet these standards, everyone benefits: guests get reliable accommodations, municipalities get transparency, and local businesses see consistent tourism revenue. That’s the ripple effect we can’t ignore — fewer rental cottages mean fewer visitors, and fewer visitors mean shrinking local economies.
We believe there’s a better way. Responsible operators—those who screen guests, ensure guests are educated on codes of conduct (such as occupancy limits, noise bylaws, where to park, and put garbage), and want to do their best to add to the guest experience–should be partners in the regulation process–not its casualties.
- To make short-term rental licensing work, the province needs thoughtful, targeted policy, including:
- Tiered penalties for non-compliance that deter bad actors without punishing compliant owners;
- Data transparency and enforcement that focuses on unlicensed or unsafe rentals;
- Collaboration with professional operators who already exceed standards and can offer insights into what works on the ground;
Recognition that vacation rentals (such as lakefront cottages in key tourist destinations) are a valuable, perpetually monetizable tourism asset, and should be supported with reasonable regulations and fair licensing fees.
We agree that Ontario’s cottage regions deserve protection and regulations. We need to see an industry that is professional, transparent, and sustainable, because when short-term rentals are well-managed, they do more than just generate income – they preserve the vibrancy of these towns, provide local and affordable vacation options, and attract visitors who might otherwise travel abroad.
Licensing isn’t the end of short-term rentals — it can be the beginning of a smarter, safer, and more sustainable future. With tariffs and increased domestic travel shaping how Canadians vacation, now is the time to get it right.
