Franklin, Tennessee Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in Franklin, TN?

Yes, short-term rentals are explicitly allowed in Franklin, Tennessee. The City of Franklin defines short-term vacation rentals (STVRs) as "residential dwelling units rented in their entirety for time periods less than 21 days." STVRs are a permitted use in Franklin, but they are subject to strict regulatory requirements including mandatory permitting, inspections, and ongoing compliance obligations.

What do Airbnb hosts actually earn in Franklin?

Franklin hosts earn a median $46,426/year with $243 ADR and 70% occupancy.

Top performers pull in $68,462+ per year.

See the full Franklin market breakdown

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

Starting a STVR business in Franklin requires a systematic approach following municipal procedures:

Step 1: Pre-Application Preparation

Verify zoning compliance for your property
Ensure the property meets all building and safety codes
Review the STVR checklist provided by the city
Prepare all required documentation (detailed in the next section)

Step 2: Electronic Application Submission

Effective November 7, 2022, the City of Franklin only accepts electronic applications through their online portal at franklin.idtplans.com/secure/. The city provides a comprehensive how-to document to guide applicants through the electronic submission process.

Step 3: Application Processing and Approval

Submit applications to the Building and Neighborhood Services department. The city provides reference materials including:

A detailed checklist for application completeness
Text of Municipal Code governing STVRs
STVR FAQs addressing common questions

Step 4: Post-Approval Requirements

Obtain business tax and license applications
Maintain ongoing compliance with all regulations
Prepare for periodic inspections and renewals

Required Documents, Permits, Licenses, and Guidelines

Primary Permits and Licenses

STVR Permit - Mandatory electronic application through city portal
Business License - Required for commercial operation
Business Tax Certificate - Must be obtained from Billing and Licensing

Required Documentation

Based on the city's checklist and application requirements, investors should prepare:

Completed electronic application via city portal
Property ownership documentation or lease agreements
Proof of insurance coverage
Safety and compliance certifications
Floor plans and property details
Contact information for property management

Inspection Requirements

Properties must undergo safety inspections to ensure compliance with:

Building codes
Fire safety regulations
Property maintenance standards
Zoning requirements

Ongoing Compliance Documents

Annual permit renewals
Tax remittance records (hotel/motel tax)
Guest occupancy records
Safety equipment maintenance records

Specific Regulations for Short-Term Rentals

City of Franklin Regulations (Municipal Level)

Operational Requirements

Duration Limit: Rentals must be less than 21 days to qualify as STVRs
Property Type: Must be residential dwelling units rented in entirety
Application Method: Electronic applications only since November 7, 2022

Zoning and Grandfathering Provisions

The Franklin Zoning Ordinance (effective January 1, 2025) contains specific grandfathering provisions for existing STVRs:

Pre-existing STVRs: Properties legally established and permitted as STVRs prior to the ordinance effective date retain grandfathering protections
Grandfathering Termination: Protection ends when the property is sold, transferred, ceases operation for 30 continuous months, or violates applicable laws three or more times
Family Transfer Exception: If ownership transfers to family members (blood, marriage, civil union, or adoption), grandfathering protections continue

Nonconforming Structure Rules

Existing STVRs that don't conform to current zoning can continue operation under grandfathering provisions
Expansion limitations apply to nonconforming structures
Any expansion must not increase the degree of nonconformity

Williamson County Regulations (County Level)

Tax Requirements

Hotel/Motel Tax: STVRs are subject to Williamson County hotel/motel tax
Business Tax: Applicable business taxes must be paid through the county's Business Tax Department
Contact: Business Tax Department at 615-790-5732
Form: County provides specific hotel/motel tax filing forms

State of Tennessee Regulations (State Level)

Based on the zoning ordinance references to Tennessee Code Annotated:

TCAs § 13-7-602 and § 13-7-603

State law governs grandfathering protections for pre-existing STVRs
Local regulations cannot override established grandfathering rights without cause
Properties permitted prior to local regulation changes maintain legal operation rights

TCAs § 13-7-604

Properties can lose grandfathering protection after three or more violations of generally applicable local laws
Violations must be separate incidents to count toward termination

Contact Information for Local Authority

Primary Contact - City of Franklin

Ben Onisa
Neighborhood Resources Supervisor
City of Franklin
Email: ben.onisa@franklintn.gov
Office: 615-550-6727

Mailing Address:
109 3rd Ave South
Franklin, TN 37064

General City Contact:
Phone: 615-791-3217

Department Locations

Community Development:
120 9th Ave South

Billing & Licensing and Technology:
204 9th Ave South

Administration:
740 Columbia Avenue

Williamson County Contact

Business Tax Department
Phone: 615-790-5732

County Address:
1320 West Main Street
Franklin, TN 37064

Important Links to Source Pages

Investment Considerations for Franklin STVRs

Franklin presents a attractive market for STVR investments given its tourism appeal, historic character, and growing popularity as a destination. However, investors must carefully navigate the regulatory framework, particularly the grandfathering provisions that provide important protections for existing operations. The city's electronic application system and comprehensive guidance materials demonstrate a mature regulatory environment that, while strict, provides clear pathways for legal operation.

The grandfathering protections in the zoning ordinance offer significant value to early operators, potentially protecting investments from future regulatory changes. However, these protections are not absolute and can be terminated under specific circumstances, making ongoing compliance critical for long-term operation.

For new investors, the structured application process and clear contact information with the Neighborhood Resources Supervisor provide a professional and accessible regulatory environment, though the electronic-only application requirement may present technical barriers for some operators.

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Franklin is a city in Williamson County, Tennessee, with a population of roughly 80,000 residents. Known for its preserved historic downtown, Civil War history, and small-town atmosphere, it sits about 20 miles south of Nashville and functions as a quieter, more characterful alternative to staying in the heart of Music City. The city blends antebellum architecture, locally owned boutiques, and a strong food and craft beverage scene, drawing visitors who want Tennessee charm without the pace of a large urban center.

Downtown Franklin centers on Main Street, a tree-lined stretch of restored nineteenth- and early twentieth-century buildings now housing independent shops, galleries, and restaurants. Visitors can stroll past the historic Franklin Theatre, browse storefronts in renovated brick buildings, and stop at a number of coffeehouses and tasting rooms within a few walkable blocks. The area anchors much of the city's identity and is roughly within walking distance from most in-town lodging.

Just a few miles south of downtown lies Carnton, a nineteenth-century plantation house that became a field hospital after the Battle of Franklin in 1864. The property is preserved as a museum, with tours of the home, the surrounding grounds, and a federal-style garden that interprets antebellum Tennessee life. It is a short drive from the center of town and is widely regarded as one of the most moving Civil War sites in the region.

A bit further south, the village of Leiper's Fork offers a quieter, artsy counterpoint to downtown Franklin, with small galleries, antique shops, and a handful of restaurants clustered along a single winding road. The area is a popular weekend destination for browsing and live music, and it sits within easy driving distance of the main town. Nearby, the Natchez Trace Parkway provides a scenic drive through wooded Middle Tennessee, with pull-offs for picnicking, hiking, and historic markers that trace an ancient travel corridor.

Just outside the city, Arrington Vineyards brings together a working winery, live music, and a hilltop setting that overlooks rolling countryside. It is a popular stop for wine tastings and casual afternoons, and it draws a steady crowd of both locals and visitors exploring the area south of Nashville. Together, these destinations give Franklin a layered appeal for travelers.

For short-term rental owners, Franklin offers a compelling mix: a walkable historic core, recognized historical landmarks, a well-known wine country nearby, and quick access to Nashville's music, dining, and convention scene. Visitors who want a peaceful base with a distinct sense of place — yet remain within a half-hour of a major city — find Franklin an easy fit, and the rental market reflects that steady year-round interest.