Is Short-Term Rental Restricted in Fredericton? Local Enforcement Update

Quick answer: Yes, short-term rentals are restricted in Fredericton. Only principal residences may be registered for short-term stays (fewer than 30 days). Non-principal residences are effectively prohibited unless a conditional-use variance is approved. All operators must register annually with the City and comply with occupancy, safety, and zoning rules. Enforcement has intensified since mid-2024, with fines starting at $500 per violation. As of March 2025, the City has issued 87 violation notices and conducted over 200 compliance inspections.

1. Current Regulatory Framework

Fredericton's short-term rental (STR) regulations are governed by By-law No. L-144 (the "Short-Term Rental Licensing By-law"), enacted in June 2023 and amended in March 2024. The bylaw applies to all residential units rented for fewer than 30 consecutive days.

• Principal Residence Requirement: Only the dwelling where the operator lives at least 183 days per year qualifies for an STR registration. Investment properties and seasonal cottages are ineligible without a conditional-use variance.
• Registration Mandatory: Every STR unit must be registered with the City. Platforms (Airbnb, Vrbo, etc.) are required to display the City-issued registration number on all listings.
• Occupancy Limits: Maximum 4 guests per bedroom, with a total cap of 10 guests per property, unless Fire Safety approval permits a higher number.
• No Party Clause: Operators must include a "no events or parties" clause in rental agreements and post it visibly on-site.
• Insurance: Operators must carry commercial general liability insurance of at least $1 million per occurrence.

Reference: City of Fredericton – By-law L-144 and Short-Term Rental Registration Page.

2. Real Costs – Fees, Fines & Hidden Expenses

Hidden Costs to Consider: Many operators also budget for increased utility usage, cleaning supplies, property management software (e.g., Guesty, Hostaway), and professional photography. Average annual operating cost for an STR in Fredericton (excluding mortgage) ranges between $4,200 and $7,800, according to a 2024 survey by the Fredericton Hospitality Association.

Source: City of Fredericton – STR Fee Schedule.

3. Best Areas for Short-Term Rentals in Fredericton

While STR regulations apply citywide, certain neighbourhoods are more suitable and legally compliant for short-term rental operations. Based on City data and market analysis (2024–2025), the following areas show the highest concentration of registered STRs and strongest guest demand:

• Downtown / Waterloo Row: Walkable to nightlife, restaurants, and the Beaverbrook Art Gallery. Median nightly rate: $185. Occupancy rate: 68%.
• University of New Brunswick (UNB) / St. Thomas University area: High demand during academic events, graduation, and parent weekends. Average nightly: $140.
• Marysville / North Fredericton: Growing popularity for quiet residential stays. City has approved 12 new STR registrations here in 2024.
• Lincoln / Oromocto border: Proximity to CFB Gagetown drives steady military-related bookings. Nightly average: $110.
• Kings Place / Regent Mall vicinity: Mid-range hotels are limited, creating a niche for STRs. Average nightly: $130.

Source: City of Fredericton Zoning Map and internal STR registry data (2024).

4. Step-by-Step Short-Term Rental Registration Process

1. Confirm Eligibility: Verify that the property is your principal residence (you live there ≥183 days/year) and that zoning permits STR use. Use the City's online zoning tool or call 506-460-2020.
2. Prepare Documents: Gather proof of residency (driver's license, utility bill), insurance certificate ($1M commercial general liability), floor plan with room counts, and a site plan showing parking and exits.
3. Complete Application: Submit the Short-Term Rental Registration Application online via the City's portal or in person at 397 Queen Street. Include the $75 application fee.
4. Pay Annual Registration Fee: Upon approval, pay $150 per unit. You will receive a registration number and a window decal.
5. Add Registration Number to Listings: Display your registration number on all online listings (Airbnb, Vrbo, etc.) as required by By-law L-144, Section 7(2).
6. Post On-Site Requirements: Place the "No Parties" notice, occupancy limits, and emergency contact information inside the rental unit.
7. Schedule Fire Safety Inspection (if needed): If your property has more than 4 bedrooms or occupancy exceeds 10 guests, a Fire Department inspection is mandatory.
8. Renew Annually: Renewals open October 1 each year. Submit before December 31 to avoid the $50 late fee.

Average processing time: 14–21 business days for complete applications. Incomplete submissions can take 30+ days.

Source: City of Fredericton – How to Register.

5. Where to Go – Key Local Agencies

All offices are open Monday to Friday, 8:30 AM – 4:30 PM AST. Appointments recommended for in-person STR registration submissions.

6. Safety & Compliance – Is It Safe to Operate an STR in Fredericton?

Yes, when fully compliant. Fredericton has a robust inspection and enforcement framework that keeps guests and neighbours safe. Key safety requirements:

• Smoke & CO Alarms: Required on every floor level. Must be hardwired or have 10-year sealed batteries.
• Fire Extinguisher: One 2A:10BC rated extinguisher per floor, mounted within 30 feet of all sleeping areas.
• Egress: Each bedroom must have a window that meets egress standards (minimum 5.7 sq ft opening).
• Electrical Safety: No overloaded circuits; all installations must meet Canadian Electrical Code Part 1.
• Guest Privacy: Operators cannot install surveillance cameras inside the unit. Exterior cameras must be disclosed in the listing.

In 2024, the Fredericton Fire Department conducted 214 STR inspections. Of those, 31 properties (14.5%) required corrective actions, mostly related to missing or expired fire extinguishers. No STR-related injuries or fatalities have been reported since the bylaw took effect.

Source: Fredericton Fire Department – Inspection Reports 2024.

7. How Long Does It Take? Processing & Waiting Times

• New application processing: 14–21 business days (median 18 days in 2024).
• Renewal processing: 5–10 business days (if submitted before Dec 31).
• Fire safety inspection scheduling: 7–14 business days from request.
• Conditional-use variance (non-principal residence): 12–16 weeks, including public notification and Planning Advisory Committee hearing.
• Complaint investigation: 2–5 business days for initial site visit.
• Appeal of a violation notice: 30 days to file with the Provincial Court.

Delays often occur due to: incomplete applications (missing signatures, floor plans, or insurance certificates), inconsistent property descriptions, or unresolved zoning questions. The City's STR team recommends using the pre-application checklist available at the Development Services office.

Source: City of Fredericton – STR Service Standards.

8. Vacancy Rate & Market Impact

Fredericton's residential rental vacancy rate has hovered around 2.1%–2.8% over the past two years (CMHC Rental Market Report 2024). The STR sector represents approximately 4.3% of the city's total housing stock, with 376 registered STR units as of February 2025.

• STR occupancy rate (2024): 59% citywide, peaking at 81% during September (UNB/STU move-in and graduation).
• Average nightly rate: $138 (all unit types).
• Estimated annual revenue per STR: $22,000–$38,000 (gross, before expenses).
• Impact on long-term rental supply: The City estimates that the STR bylaw has helped retain approximately 45–60 units for long-term rental since 2023, based on conversion tracking data.

The City's Housing Secretariat monitors STR conversions quarterly. A 2024 report noted that 18 formerly long-term rental units transitioned to STR registration, while 34 STRs converted back to long-term rental use—a net positive of 16 long-term units.

Source: CMHC Rental Market Report – Fredericton CMA 2024; City of Fredericton STR Registry Data.

9. Nearby Hospitals & Essential Infrastructure

For STR operators and guests, knowledge of nearby medical facilities and key infrastructure is important for emergency planning and listing accuracy.

• Dr. Everett Chalmers Regional Hospital – 700 Priestman Street, Fredericton, NB E3B 5N5. 24/7 emergency department. Phone: 506-452-5160. Located 2.5 km from downtown.
• Oromocto Public Hospital – 103 Winnebago Street, Oromocto, NB E2V 1C6. 20 km southwest of downtown Fredericton. Emergency services available daily 7 AM – 7 PM.
• Fredericton Walk-In Clinic – 1015 Regent Street, Fredericton, NB E3B 6H5. No appointment needed. Hours: Mon–Fri 8 AM – 8 PM, Sat–Sun 9 AM – 5 PM.
• Pharmacies: Shoppers Drug Mart (1040 Prospect Street) and Lawtons Drugs (559 NB-101) are open late.

Key roads for STR access: Highway 2 (Trans-Canada Highway) runs east–west through the city; Highway 8 connects to the airport and northern communities; Ring Road (Route 102) provides quick access to the north side. Winter road conditions are monitored by NB 511.

10. Penalties & Fines – Detailed Breakdown

Enforcement of the STR bylaw is handled by the City's By-law Enforcement Division. Penalties are structured to increase with severity and frequency:

In 2024, the City issued 87 violation notices and collected approximately $43,500 in fines. Three cases were referred to Provincial Court, resulting in one order to cease operations permanently and two conditional discharges with probationary compliance terms.

Reference: By-law L-144, Sections 9–11 and By-law Enforcement Annual Report 2024.

11. Real Cases & Enforcement Stories

Here are three documented enforcement cases from Fredericton's STR compliance records (names redacted for privacy):

These cases illustrate that the City is actively enforcing the bylaw, with escalating consequences for non-compliance. The STR team at Development Services reports that 82% of first-time violators come into compliance within 30 days of a notice.

Source: City of Fredericton – By-law Enforcement Actions Dashboard (updated quarterly).

Frequently Asked Questions

Official Resources

• City of Fredericton – Short-Term Rental Portal
• By-law L-144 – Short-Term Rental Licensing
• How to Register – Step-by-Step Guide
• STR Fee Schedule (2025)
• By-law Enforcement Division – Complaints & Compliance
• Zoning Map – City of Fredericton
• CMHC Rental Market Report – Fredericton CMA
• NB 511 – Road Conditions & Travel Info
• Provincial Offences Procedure Act – New Brunswick