Are Short-Term Rentals Allowed in Franklin, TN?

Yes, short-term rentals are allowed in Franklin, TN with significant restrictions. The city permits Short-Term Vacation Rentals (STVRs) but has implemented strict regulations as of December 2019, with additional restrictions passed in December 2020. Most notably, new short-term rentals in residential areas must be owner-occupied, meaning the property owner must live on-site.

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

Step 1: Determine Eligibility

• Verify your property meets the owner-occupancy requirement (for new applications in residential areas)
• Ensure your property is properly zoned for short-term rental use
• Confirm you can meet all regulatory requirements

Step 2: Apply for Permits

• Submit an electronic application through the city's online portal at franklin.idtplans.com/secure/
• Note: As of November 7, 2022, Franklin only accepts electronic applications for STVRs

Step 3: Obtain Business License

• Apply for a business tax and license through the city
• Complete all required documentation and pay applicable fees

Step 4: Pass Inspections

• Schedule and pass all required property inspections
• Ensure compliance with safety and building codes

Required Documents, Permits, Licenses, and Guidelines

Essential Documents:

• STVR Application: Must be submitted electronically through the city portal
• Business Tax and License Application: Required for all STVR operations
• Property inspection certificates: Demonstrating compliance with safety codes
• Proof of owner-occupancy: For new residential STVR applications

Key Application Requirements:

• Complete application checklist (available on city website)
• Compliance with municipal code requirements
• Payment of all applicable fees
• Meeting zoning requirements

Guidelines to Follow:

• Review the official STVR FAQs document provided by the city
• Follow the step-by-step submittal process outlined in the city's how-to document
• Ensure compliance with all municipal code provisions

Specific Regulations for Short-Term Rentals

Primary Restrictions:

1. Owner-Occupancy Requirement: New STVRs in residential areas must be owner-occupied (property owner must live on-site)
2. One Rental Per Lot: Only one short-term rental is allowed per lot
3. Rental Duration: Properties are rented for periods less than 21 days
4. Grandfathering Protections: Properties legally established as STVRs before the ordinance effective date maintain existing rights until:
   • The property is sold
   • Transferred to non-family members
   • Ceases operation for 30 continuous months
   • Violates local laws three or more times

Zoning Considerations:

• Residential areas have stricter requirements than commercial districts
• Properties in commercial districts may have different regulations
• Grandfathered properties maintain protections under previous regulations per Tennessee Code Annotated § 13-7-603

Compliance Requirements:

• Obtain proper permits before operation
• Maintain compliance with all generally applicable local laws
• Provide adequate parking for guests
• Limit guest numbers as specified in permits
• Follow all safety and building code requirements

Transfer and Sale Provisions:

• Grandfathering protections continue when ownership transfers to family members (related by blood, marriage, civil union, or adoption)
• Non-family transfers lose grandfathering protections and must comply with current regulations

Contact Information for Local Authority

Primary Contact:

• Name: Ben Onisa
• Title: Neighborhood Resources Supervisor
• Department: Building and Neighborhood Services
• Email: ben.onisa@franklintn.gov
• Phone: 615-550-6727

City of Franklin Building and Neighborhood Services

• Mailing Address: 109 3rd Ave South, Franklin, TN 37064
• General Phone: 615-791-3217

Physical Locations (Interim City Hall Campus):

• Community Development: 120 9th Ave South
• Billing & Licensing: 204 9th Ave South

Online Resources:

• Electronic Application Portal: franklin.idtplans.com/secure/
• Main City Website: www.franklintn.gov

Source Links

• Official STVR Information Page: https://www.franklintn.gov/business/short-term-vacation-rentals
• Municipal Code and Regulations: Available through the city's official website
• Electronic Application System: https://franklin.idtplans.com/secure/

Additional Important Information

Current Market Status:

• As of recent reports, Franklin has 206 permitted short-term rental properties
• The city has implemented these restrictions to balance tourism growth with resident concerns
• Properties in the downtown historic area and commercial districts may have different regulatory frameworks

State-Level Considerations:

Franklin's regulations operate within the framework of Tennessee state law, particularly Tennessee Code Annotated Title 13, Chapter 7, which provides certain protections for existing short-term rental operations while allowing local municipalities to implement reasonable regulations.

Professional Management:

Many property owners work with professional short-term rental management companies to ensure compliance with all regulations, handle guest communications, and maintain properties. These services typically charge 10-25% of rental income but can provide comprehensive management including marketing, cleaning, maintenance, and regulatory compliance assistance.

This regulatory environment in Franklin represents a balanced approach to short-term rental management, protecting both property rights and community interests while maintaining the city's appeal as a tourist destination.