Executive Overview

Short-term rentals ARE allowed in Franklin, PA - the city is listed among Pennsylvania's third class cities that have adopted specific short-term rental ordinances. Franklin operates within the regulatory framework established by Venango County and Pennsylvania state law, with additional municipal-level regulations that investors must navigate carefully.

How to Start a Short-Term Rental Business in Franklin, PA

Starting an STR business in Franklin requires following both state and local regulatory pathways:

Initial Assessment Process

1. Zoning Verification: Confirm your property's zoning classification allows short-term rental activities
2. Registration Requirements: Franklin requires rental property registration and licensing
3. Tax Registration: Register with Pennsylvania Department of Revenue for hotel occupancy tax collection
4. Insurance Evaluation: Assess whether existing homeowner policies cover commercial STR activities

Business Structure Considerations

• Entity Formation: Consider LLC or other business structures for liability protection
• Financial Planning: Factor in Pennsylvania's 3.07% personal income tax rate on STR income
• Recordkeeping Systems: Implement comprehensive recordkeeping for tax and regulatory compliance

Required Documents, Permits, Licenses, and Guidelines

State-Level Requirements (Pennsylvania)

Tax Registrations

• Hotel Occupancy Tax License: Required through PA Department of Revenue
• Sales, Use, and Hotel Occupancy Tax Registration: Mandatory for operators collecting state taxes
• Personal Income Tax Registration: PA personal income tax applies to STR income

Insurance Requirements

• General Liability Insurance: Recommended minimum coverage
• Property Insurance: Ensure coverage extends to commercial STR activities
• Short-Term Rental Insurance: Consider riders or separate policies for comprehensive coverage

Municipal Requirements (Franklin, PA)

Licensing and Permits

• Rental Property Registration: Annual registration required with city
• Short-Term Rental License: Specific licensing for STR operations
• Business License: General business operation license if required
• Zoning Compliance Certificate: Verify property use compliance

Inspection Requirements

• Safety Inspections: Fire safety, structural integrity assessments
• Electrical and Plumbing Evaluations: System compliance verification
• Habitability Standards: Meeting residential rental standards

County Requirements (Venango County)

Business Operations

• County Business Registration: May be required depending on business structure
• Tax Collection Authority: Local hotel tax collection and remittance

Specific Regulations: City, County, and State Level

State Regulations (Pennsylvania)

Lodging and Housing Code

• Definition: Properties offering lodging for less than 30 days qualify as "lodging establishments"
• Recordkeeping: Maintain detailed guest records for minimum two years
• Safety Standards: Compliance with lodging establishment safety requirements

Hotel Occupancy Tax Structure

• State Rate: 6% hotel occupancy tax
• Venango County: As a 6th class county, local hotel tax up to 5% (verify current rate)
• Collection Responsibility: Operators must collect and remit taxes regardless of booking platform

Personal Income Tax

• Rate: 3.07% on net STR income
• Business Classification: STR income treated as business income
• Deductions: Business expenses allowable against gross rental income

Municipal Regulations (Franklin, PA)

Zoning Restrictions

• Residential Zones: STR activities may be restricted or prohibited
• Commercial Districts: Likely permitted with proper licensing
• Conditional Uses: May require special approval processes

Operational Requirements

• Occupancy Limits: Maximum guest occupancy restrictions
• Stay Duration: Minimum and maximum stay requirements
• Parking Requirements: Off-street parking standards
• Noise Ordinances: Compliance with quiet hours and noise restrictions
• Property Maintenance: Upkeep standards and appearance requirements

Safety and Health Standards

• Smoke and Carbon Monoxide Detectors: Required safety equipment
• Fire Safety Compliance: Emergency egress and fire safety measures
• Sanitary Conditions: Health department compliance for shared facilities

County Regulations (Venango County)

Tax Collection

• Local Hotel Tax: County-imposed room rental tax (verify current rate and collection authority)
• Tax Collection Agency: Identify local tax collection authority for county taxes

Business Oversight

• Business Registration: County-level business operation requirements
• Property Standards: County health and safety inspections for rental properties

Contact Information

Primary Regulatory Contacts

Pennsylvania State Level

Pennsylvania Department of Revenue

• Phone: 717-787-1064
• Website: www.revenue.pa.gov
• Address: Strawberry Square, Harrisburg, PA 17128
• Purpose: Hotel occupancy tax registration, business tax guidance

Pennsylvania Department of Insurance

• Phone: 717-787-5173
• Website: www.insurance.pa.gov
• Address: 1321 Strawberry Square, Harrisburg, PA 17120
• Purpose: Insurance requirements and coverage guidance

Franklin Municipal Level

Franklin City Hall

• Phone: [Contact city directly for current number]
• Address: Franklin, PA 16323
• Purpose: Rental property licensing, zoning compliance

Franklin Code Enforcement

• Phone: [Contact city directly for current number]
• Purpose: Property inspections, zoning violations, STR compliance

Venango County Level

Venango County Assessment Office

• Phone: [Contact county directly for current number]
• Address: Franklin, PA 16323
• Purpose: Property tax assessments, homestead exemptions

Venango County Tax Collection

• Phone: [Contact county directly for current number]
• Purpose: County hotel tax collection and compliance

Source Pages and Additional Resources

Primary Regulatory Documents

• Pennsylvania State STR Study Report: jsg.legis.state.pa.us/resources/documents/ftp/publications/2025-03-17%20Short-term%20Rental%20Web%203.17.25.pdf
• Joint State Government Commission: jsg.legis.state.pa.us/
• Pennsylvania Department of Revenue: www.pa.gov/agencies/revenue/resources/tax-types-and-information/sales-use-and-hotel-occupancy-tax/home-sharing.html

Municipal Resources

• Franklin City Code: Contact city hall for current ordinances
• Venango County Government: Contact county offices for current regulations

Industry Resources

• Airbnb Tax Information: www.airbnb.com/help/article/2325
• Short-Term Rental Insurance Resources: Contact insurance providers for STR-specific coverage options

Important Disclaimer: This guide is based on Pennsylvania state regulations and general information about Franklin, PA's STR framework. Specific requirements, rates, and regulations change frequently. Always verify current requirements with local authorities before establishing an STR business in Franklin, PA.