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.

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

1. STVR Permit - Mandatory electronic application through city portal
2. Business License - Required for commercial operation
3. 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

City of Franklin Official Resources

1. Main STVR Information Page: www.franklintn.gov/business/short-term-vacation-rentals
2. Electronic Application Portal: franklin.idtplans.com/secure/
3. Application How-to Guide: www.franklintn.gov/home/showpublisheddocument/35593/638054034324470000
4. STVR Checklist: www.franklintn.gov/home/showpublisheddocument/36792/638180252125070000
5. Municipal Code Text: www.franklintn.gov/home/showpublisheddocument/34844/637897662499370000
6. Business Tax and License Applications: www.franklintn.gov/home/showpublisheddocument/28001/636655202658070000
7. STVR FAQs: www.franklintn.gov/home/showpublisheddocument/34568/637819876045530000

Zoning and Legal Framework

8. Franklin Zoning Ordinance: web.franklintn.gov/flippingbook/FranklinZoningOrdinance/16/

Williamson County Resources

9. Hotel/Motel Tax Information: www.williamsoncounty-tn.gov/1747/HotelMotel-Tax-and-Short-Term-Property-R
10. Hotel/Motel Tax Form: www.williamsoncounty-tn.gov/DocumentCenter/View/17295

Additional Resources

11. City Services Directory: www.franklintn.gov/services-2
12. Building and Neighborhood Services: www.franklintn.gov/government/departments-a-j/building-and-neighborhood-services/building-and-neighborhood-services
13. Municipal Code: www.franklintn.gov/government/municipal-code

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.