It’s no secret that owning waterfront property has become an expense reserved for a fortunate few. Whether in Muskoka or other parts of the province, the costs associated with a seasonal property have risen out of reach for most.

But Muskoka is a diverse region, and so are the people who live and cottage here. There are over a thousand lakes here, big and small, with homes ranging from magazine-worthy estates to humble cottages.

This variety can offer unique opportunities beyond the classic lakefront experiences. And similarly, there is a wide range of options to make ownership more manageable.

Defining the “Muskoka Experience” is an ever-changing target. But whether influenced by trends in construction, changing demographics, accessibility or the economy, those who choose to find their place in this community have more options than ever before.

Co-op ownership
Many cottage owners form a tight-knit community, spending time with their neighbours over many years. For one group of cottagers on Muskoka Bay, though, the bonds are stronger than that.

The property is located within sight of Muskoka Wharf in Gravenhurst, and it’s seen many uses. It was once farmland, and since then has been home to a tea house, a Jug City gas station, a bakery, and a general store. What was once a small motel owned by the Barnes family was converted into apartments. And at one time, a section of the waterfront was severed, and five separate structures were built on it.

Sol Mednick owns that portion of the land and one of the cottages, which was built in 1962. The other cottages on Sol’s land are owned by four other families, a unique co-op arrangement that has stood the test of time.

Some have been members of the co-op for years – Noreen and Bruce Baker have owned their cottage for at least 50 years and are among the original co-op owners. Other owners have been around for nearly as long.

Stephen Dow describes himself as the “new kid on the block,” having owned his cottage for about 12 years. Another one of the buildings has changed ownership in the last few years.

Dow says the property itself has some features he found appealing. “It is nice and close to the highway – not a long dirt road, but with a good stand of trees between the cottages and the highway.”

But it’s also a rich community. Each family owns their cottage, but shares the waterfront. Parties and gatherings are communal affairs, with everyone invited. “It never seems to be crowded,” says Dow. “We lucked into a good group of people.”

It also helps that everyone appreciates the delicate balance sharing a property requires. People have to adjust and accommodate to create a workable community, he says. “All adults know that if you create a pressure point, it could affect the dynamic. Praise in public, correct in private.”

This co-op arrangement reduces the cost of summer waterfront – shared facilities and a reduced property footprint mean that costs are lower than they would be if everyone owned fully detached properties.

It does require some careful financial planning, though. Dow manages the bank account. Expenses are divided according to the assigned share value of each individual structure. “I try to plan for a crisis, with contingency funds and updated planning,” he explains.

Each property owner pays an annual fee, with a portion allotted to maintenance such as grass cutting and tree removal, and a portion going into a reserve fund. Major projects require approval by at least 60 percent of the property owners.

Not all maintenance involves hiring people, though – sometimes one owner will take on a task on behalf of the group. Dow explains that they work out a rate to compensate the person in advance. “It’s a determined and agreed-to rate to create some balance. This is part of my skillset.”

As building owners come and go, prospective new owners must either pay for their cottage up front or find private financing: mainstream financial services won’t lend in such circumstances.

The co-op approach has evolved over the past 50-plus years and generally works well. “We were considering switching our co-op to a condominium setup,” says Sol Mednick, “but after much discussion and consultation with our lawyer, the current system has worked so well that we decided to leave matter as is.”

Family sharing
The co-op arrangement works well, but it’s extremely unusual. A much more common system is the family cottage shared by multiple generations of a family.

In the typical Muskoka story, the cottage was once owned by a single family. When the patriarch or matriarch passed away, several children inherited the cottage together.

Sometimes the arrangement works beautifully, even lasting into a third generation. At other times, though, the family cottage can be a focal point for intense emotions that are difficult to navigate.

Paul Crammond says it’s not unusual for these arrangements to fall apart within five years. “Often there can be too many opinions and unrealistic desires,” says Crammond, who is a realtor. “It can be very difficult to manage co-ownership. Issues surrounding budgets, pets, guests, rentals and proximity to the seasonal property play a role.”

Clarity is a key to success, he says. “Write down and agree to some rules. Otherwise, I’ve seen families get into arguments over petty issues. Unfortunately, it happens – a lot of emotions are attached. When the patriarch and matriarch are gone, there are just too many views.”

The ideal scenario happens when the property is large enough that each family can have their own cottage, with a clear understanding of how shared areas will be used. But even smaller properties with a single cottage can be shared successfully with the right approach.

Families and realtors who have navigated these arrangements agree that the best approach is to make arrangements while the single owner of the cottage is still alive. If the parent or grandparent presents a plan that meets the needs of all their heirs, everyone is clear on what will happen when the day eventually comes.

Tim Wright’s cottage property has been in the family since the 1950s, when his grandmother, father and uncle bought Gairney Island, a six-acre island in Lake Muskoka. Wright explained that since that time, use of the property has grown organically, with the third and fourth generations now managing everything.

He says this situation has been a success for several reasons. For starters, with six acres of land there has been enough space to expand to meet the needs of his generation – there are now 30 family members from across four generations of Wrights involved with the property. But perhaps more importantly, there is a willingness and financial capacity to make it work as a community.

“Every Canada Day weekend, when the most people are up, we run ‘workapalooza’ where everyone tackles a two- to three-hour island project – from cutting down trees and power washing docks to swimming around the island,” Wright explains. “We also have a ‘board’ that meets once a summer to plan future projects. Any time a family wanted to expand or build, we would meet as a board to review the project. It has worked to keep development under control.”

At the heart of this success is that they are all on good relations. Still, Wright anticipates the pyramid can’t go on forever. There are only so many bedrooms, so each generation brings more challenges, but so far it has been working. “There can be easily 30 people on a Canada Day weekend. It is wonderful to have the extended generations around in the summer.”

Build, sever, communicate
Susan Benson is a realtor and longtime member of the Committee of Adjustment in Muskoka Lakes Township. She says clear arrangements are a must.

“Very few of our clients have done this but a few have had their lawyers prepare a shared ownership agreement so that rights and responsibilities are clearly understood by all family members,” she says.

“Generally, we find the vast majority of agreements are more informal and flexible – but over time, most have embraced dedicated time and/or space for each of the participating families.”

If the property is large enough, then severing is often the simplest approach, creating smaller, individually owned portions. However, she notes that it is extremely important to review plans with the township to avoid costly consequences. Severing also offers the option of selling a portion to be able to finance what remains.

Adding new structures to the property can be an effective solution. Building a bunkie or a garage with accommodation above provides additional space for expanding families of siblings – and may add significant value to the property.

Repurposing existing structures may also be an option. Dividing large spaces in the cottage into smaller rooms can accommodate various family needs.

Whatever the approach, though, there’s one thing that is certain: time at the cottage is a precious resource, and creative people will always try to find a way to share and maintain it.

ARTICLE BY TIM DUVERNET