Bracebridge is one of the easiest places in Muskoka to love as a guest: the falls, the downtown, and lakes in every direction. It is also a town that takes short-term rentals seriously. Every rental needs a licence, the Town inspects before it issues one, and a demerit system follows you once you are up and running.

None of that should put a good owner off, but it does mean doing things in the right order. Here is what the Town asks for and what it expects while guests are there.

This is general information, not legal advice. The Town of Bracebridge has the final word, so please confirm details with them before you apply or advertise.

Do you need a licence?

Almost certainly. In Bracebridge, a short-term rental is any rental of all or part of a dwelling for 28 consecutive days or less. Since January 1, 2024, every new and existing short-term rental operator has needed a licence, and it has to be renewed every year.

Renting only occasionally still needs a licence.

A few basics from the by-law:

• The applicant must be the owner of the property.

• One building per property. You cannot run a short-term rental out of more than one building with bedrooms on the same property, so a cottage plus a separate bunkie with bedrooms cannot both be rented.

• Your licence number goes on every listing and advertisement.

• Licensed rentals are public. The Town publishes a list and map of licensed properties, including the contact for each property's responsible person.

• There is an overall limit. The by-law caps the number of licences at 4% of the private dwellings in Bracebridge, based on the current census.

What it costs

The Town's licence fee is $1,500 a year. In the Town's 2026 fees by-law, the fee is shown as prorated by the month for new rentals that start mid-year.

The Town also notes that additional fees may apply for the safety inspections. Check the Town's page for current inspection rates before you budget.

What to have ready for your application

Applications and payment are made online. The Town's list of what you need:

• A certificate of insurance. The by-law requires at least $2 million in liability coverage per occurrence, and the policy has to identify that a short-term rental operates on the property.

• A complete floor plan showing the rented areas, bathroom fixtures, bedrooms and their windows, every entrance and exit, fuel-burning appliances, smoke alarms, fire extinguishers and, where needed, carbon monoxide alarms.

• A site diagram showing property lines, buildings and setbacks, decks, parking with dimensions, fire pits, the well, the septic tank and bed, and shoreline areas. The Town posts a sample site diagram and floor plan.

• A signed Licensee Code of Conduct, signed by every owner.

• Incorporation documents, if a corporation owns the property.

• A WETT report, if there is a wood-burning fireplace or stove. It must be less than five years old.

• Proof of a septic pump-out, where applicable, less than five years old, along with any repairs it identified. If the Town has no record of your septic system, or the approved system is more than 30 years old, the by-law also asks for a site report from a qualified septic professional.

• The name and contact details of your responsible person (more on that below).

You will also need a renter information package for guests. It covers your responsible person's contact details, booking information, a floor plan with safety equipment and exits, the nearest emergency medical services, garbage and property care, parking and how complaints are handled.

The inspections

Two inspections or sign-offs happen before a licence is issued:

• A building inspection through the Town's building department, and

• A fire inspection by a Fire Prevention Officer, who checks smoke alarms, fire extinguishers, carbon monoxide alarms and more.

The Town tells you which inspections you need during the application, and it is up to you to book them. By-law Enforcement then does a final review and issues the licence.

A few safety items worth getting right before the inspector arrives:

• Smoke alarms installed to the Ontario Fire Code and no more than ten years old

• A multi-purpose ABC fire extinguisher, rated at least 2A 10B:C, in every indoor cooking area, visible and fully charged

• Carbon monoxide alarms outside sleeping areas if you have any fuel-burning or wood-burning appliance, or an attached garage

Running your rental within the rules

These are the rules that matter most once guests start arriving:

• Guest limits overnight. Between 11 p.m. and 7 a.m., no more than two people per approved bedroom, and never more than 12 people on the property, however many bedrooms you have. On a septic system, the Town may set a lower number at the time of application based on the system's capacity.

• A responsible person who can get there within an hour. Someone has to be available 24 hours a day while the cottage is rented, able to attend within one hour if an officer calls. The Town also says the responsible person must respond to complaints within one hour.

• The Renter's Code of Conduct. Every renter signs it before the stay. You need to be able to produce a signed copy within 24 hours if an officer asks.

• Display the licence. Frame it or mount it in a prominent spot inside the cottage.

• Keep records. Keep a record of every stay, including the number of nights and the price charged, for six years. The Town can ask to see it within 30 days.

• Tell the Town about changes to your application information within seven days.

• Garbage. The District Municipality of Muskoka handles waste collection in Bracebridge, and the Town asks owners to make sure guests know the collection schedule and limits. Garbage left out is one of the fastest ways to upset a neighbour. We wrote about one weekend when it went wrong, and the system that fixed it.

The demerit point system

Bracebridge enforces its rules with demerit points, and the owner is responsible for what guests do. Points are assessed against the property and licensee for things like noise, burning, dog control, property standards, fire code and licensing violations. A warning from an officer counts, not just a conviction.

• At 7 points, the licence can be suspended for six months.

• At 15 points, the licence is revoked for 12 months.

• Points stay on the record for two years.

As a sense of scale, a single noise warning is 3 points and a fire code warning is 5. Administrative penalties under the by-law can also apply, starting at $500 for a first contravention.

Most of this comes down to the basics: clear house rules, quiet hours guests know about before they arrive, firm guest limits, and someone close by who picks up the phone.

The Municipal Accommodation Tax

Since October 1, 2025, Bracebridge has charged a 4% Municipal Accommodation Tax (MAT) on stays of 28 consecutive days or less. It applies to the room portion only, not amenity or service fees that are itemized separately, and HST applies on top.

You choose, once, whether to remit monthly or quarterly, and you file a return every period even if you collected nothing. The Town says Airbnb does not currently collect Bracebridge's MAT, so you need to set it up on your listing yourself. Late returns carry a 1.25% penalty per month.

A timing note for current licence holders

The by-law sets the first licence term to run until December 31, 2026. From January 1, 2027, licences run for one year from the date they are issued. If you hold a Bracebridge licence today, now is a good time to ask the Town how and when to renew for 2027.

How Homeseeker helps Bracebridge owners

We are a local Muskoka cottage rental management company. For Bracebridge owners who want help, we can:

• Talk through whether your cottage is a good fit for renting, and what the licence will involve, before you start

• Help you organize the application checklist and renewal dates so nothing is missed

• Build a renter information package and house rules that cover what the Town asks for

• Set up listings that show your licence number and stay within your approved guest limit

• Handle guest communication, screening and check-in details, so quiet hours, parking and garbage are clear before anyone arrives

• Coordinate cleaning and turnovers, and keep an eye on the cottage between stays

For more on what owners across cottage country are asking this year, see our Top 10 Questions Cottage Owners Are Asking in 2026.

This article is general information, not legal or tax advice. Rules and fees can change, so always confirm current requirements with the Town of Bracebridge before you apply or advertise.