Muskoka Short term rental

[Shelley Peever]

Hello everyone: 

I currently own a long term rental duplex in Bracebridge, Ontario, Canada, which is cottage country and about 20,000 population normally. However, Muskoka is a huge tourist area that attracts a large vacation population each summer. I am from this area originally. I currently own a single family home in Victoria, BC as well. My question is - Bracebridge is experiencing issues for long term rentals for people looking to rent a 2 or 3 bedroom unit, and these are very scarce as prices to own escalate and property management for long term rentals is scarce also. I re-rented one side of the duplex I have and had 29 applicants just for the one side. My question however, is for short term rentals there - licensing is taking place such that it is possible, owners may be limited to 50% of the year, making investing in a short term rental more risky. Short term rentals in the past on lakes in this area have done very well, but things have changed post covid, interest rates rising etc. People who purchased cottages a few years ago may be losing a great deal of money trying to sell them right now. So, I see that prices are very attractive to buy a lakefront property, however, STR may be too risky. I would appreciate any feedback.