On the map: Part-time renting helps new cottagers pay the bills

Ontario’s Muskoka region is synonymous with the pleasures of cottage country: boating, swimming, water sports, relaxing on decks and docks. But where it falls short, says RAM Development Group principal Russell Jacobson, is in the availability of fully managed income properties. That, he says, is a hole that the Toronto-based developer’s new Luna Bay Resort hopes to fill. 

“We envisioned Luna Bay as being home to the cottage you never knew you wanted or could afford,” Jacobson says of the 60-unit project replacing the 98-year-old Delmonte in the Pines resort on the west-facing shores of Sparrow Lake. “It’s designed for people who want to enjoy their time away without the maintenance and chores typically associated with cottages, while offering a more affordable ownership option than what is typically available in Muskoka these days.” 

Indeed, recreational properties across Ontario are hot-ticket items, with Royal LePage’s 2024 Cottage Trends Report predicting an 8 percent year-over-year increase in prices — the highest of all Canadian provinces — despite recent changes to capital gains tax rules that can add costs to the sale of secondary homes.  

Luna Bay’s ownership model includes the kind of in-house rental management that Jacobson says has become common at ski resorts and in tropical destinations. This allows owners to generate income when not using their property, while ensuring that the three-storey cottages, surrounding grounds and resort facilities are cleaned and properly maintained. Owners are able to occupy their cottages for up to 165 days a year, with a minimum of 200 days required for rental availability. This arrangement gives owners the chance to block off their preferred weeks well in advance, with the option to use the cottage themselves if it hasn’t been rented. “Our model is designed for those who don’t intend to use the cottage every weekend but want a mix of personal use and rental income,” Jacobson explains. “It’s not for anyone looking to flip a property quickly. It’s more for those seeking a long-term investment in a lifestyle that combines urban condo convenience with upscale cottage living.”  

The rental requirement also “helps to ensure that the property remains accessible and active throughout the year, rather than being a collection of private homes that sit unused,” Jacobson says. In winter, for instance, nearby snowmobile and snowshoe trails will combine with lake skating, a heated plunge pool and in-suite spa services to “provide a winter experience you can rarely find at a typical Muskoka cottage.” 

The development includes a restaurant open to the public, as well as a wide range of amenities available only to owners and their guests: A 200-foot-long sandy beach; swimming and plunge pools; an outdoor barrel sauna; fire pits; a kid’s game room and outdoor play area; a golf simulator; and tennis, pickleball and basketball courts. This varied mix of amenities, Jacobson says, makes Luna Bay “ideal for multi-generational families who can share ownership and costs.”  

Set on a 53-acre woodland lot with 44 boat slips lining 1,600 feet of waterfront, Luna Bay has been designed by Burlington’s ATA Architects to combine a “Nordic Zen” aesthetic inspired by Scandinavian and Japanese design with Muskoka’s rugged natural scenery, Jacobson says. Offering three or four bedrooms, all units are west-facing and include private driveways, balconies and patios, floor-to-ceiling windows, 10-foot main-floor ceilings and cathedral ceilings in primary bedrooms; quartz countertops, frameless glass shower doors, engineered wood flooring, and lockable closets for owners and guests. Owners also have the option to buy fully furnished units. 

Starting at $1.6 million. For more information, visit LunaBayCottages.ca. 

Three things 

Perched atop a 300-foot precipice overlooking the Muskoka Bay Resort’s Doug Carrick-designed golf course, the Cliffside restaurant serves elevated dishes like pan-seared local trout fillet and a six-ounce beef tenderloin steak finished with Café de Paris butter. 1217 N. Muldrew Lake Rd., RR 2, Gravenhurst 

 The Lake St. George Golf Club is home to three nine-hole courses, all par-36s, that meander past creeks and through hardwood forests lining the southern shores of the club’s namesake. 3156 S. Sparrow Lake Rd., Washago 

 As the only Muskoka lake that’s part of the Trent Severn Waterway, Sparrow Lake is a short boat ride away from Lake Simcoe, with Georgian Bay being a day away, give or take.