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

YES — Short-term rentals are explicitly permitted in Franklin, Wisconsin. Short-term rentals are classified as a "P" (Permitted) use in all residential districts (R-C, R-SE, R-SR, R-MF, R-V) according to the City of Franklin Unified Development Ordinance. This means investors can legally operate short-term rentals without needing special approvals, provided they comply with all applicable regulations and obtain the required permits.

How to Start a Short-Term Rental Business in Franklin

Step 1: Property Qualification

• Primary Residence Requirement: The short-term rental property must be your primary residence
• Zoning Compliance: Ensure your property is located in a residential district where short-term rentals are permitted
• Property Type: Single-family homes, duplexes, townhomes, and multifamily units are all eligible

Step 2: Obtain Required Permits and Licenses

• Tourist Rooming House License: Required from the City of Franklin Health Department
• Hotel Tax Registration: Must comply with Chapter 138-25 of the City of Franklin Code of Ordinances

Step 3: Operational Setup

• Guest Management: Implement booking and guest management systems
• Insurance: Secure appropriate liability and property insurance
• Local Compliance: Establish procedures to ensure compliance with all city regulations

Required Documents, Permits, Licenses, and Guidelines

Mandatory Licenses and Permits:

1. Tourist Rooming House License

   • Issued by: City of Franklin Health Department
   • Required for: All short-term rental operations
   • Renewal: Annual

2. Hotel Tax Registration

   • Issued by: City of Franklin (Chapter 138-25)
   • Required for: Collecting and remitting room taxes
   • Compliance: Ongoing monthly/quarterly reporting

Property Requirements:

• Guest Capacity: Maximum 2 adult guests per bedroom
• Stay Duration: Minimum 3 days, maximum 30 days per stay
• Primary Residence: Property owner must reside at the property
• Zoning Compliance: Must comply with all residential district requirements

Operational Standards:

• Property Maintenance: Property must complement neighborhood appearance
• Nuisance Prevention: Must not detract from abutting properties
• Compliance Monitoring: Subject to city inspection and enforcement

Specific Regulations for Short-Term Rentals

City of Franklin (Local) Regulations:

Article 4.05(B) - Short-Term Rental Use-Specific Standards:

1. Guest Limitations: Maximum of 2 adult guests per bedroom
2. Stay Duration Requirements:
   • Minimum stay: 3 consecutive days
   • Maximum stay: 30 consecutive days
3. Primary Residence Mandate: The residential dwelling must be the primary residence of the property owner
4. Tax Compliance: Subject to hotel tax provisions established in Chapter 138-25 of the City of Franklin Code of Ordinances
5. Health Department Licensing: Tourist Rooming House License from City of Franklin Health Department required

Zoning District Permissibility:

• R-C (Countryside Residence): Permitted (P)
• R-SE (Suburban/Estate Residence): Permitted (P)
• R-SR (Suburban Residence): Permitted (P)
• R-MF (Multiple-Family Residence): Permitted (P)
• R-V (Village Residence): Permitted (P)

Additional Compliance Requirements:

• Must comply with all general development standards in Article 5
• Subject to residential district bulk and dimensional standards (Article 3)
• Must comply with parking requirements (Section 15-5-01(B))
• Property maintenance and appearance standards apply

Milwaukee County Regulations:

While the provided content focuses on city-level regulations, short-term rentals in Franklin must also comply with Milwaukee County health and safety regulations that may apply.

Wisconsin State Regulations:

Short-Term Rental Tax Requirements:

• Wisconsin Room Tax (State): 5.5% on gross receipts
• Additional local room taxes may apply
• Monthly or quarterly filing requirements with Wisconsin Department of Revenue

Wisconsin Administrative Code:

• Must comply with Wisconsin Administrative Code Chapter SPS 320 (Buildings Used for sleeping accommodations)
• Health and safety standards under Wisconsin Statutes Chapter 97

Contact Information for Local Authority

Primary Contacts:

City of Franklin Health Department

• Phone: (414) 425-9101
• Function: Tourist Rooming House License issuance and inspections
• Website: www.franklinwi.gov (specific health department page)

City of Franklin Planning Department

• Phone: (414) 425-4024
• Function: Zoning compliance and UDO questions
• Email: planning@franklinwi.gov

City of Franklin Finance Department

• Phone: (414) 425-7500
• Function: Hotel tax registration and compliance
• Email: finance@franklinwi.gov

City of Franklin Clerk's Office

• Phone: (414) 425-7500
• Function: General municipal inquiries
• Email: cityclerk@franklinwi.gov

City of Franklin Building Department

• Phone: (414) 425-0084
• Function: Building permits and inspections
• Email: building@franklinwi.gov

Source Pages

Primary Regulatory Source:

• City of Franklin Unified Development Ordinance (Approved May 6, 2025; Effective June 9, 2025)
• Source URL: www.franklinwi.gov/Files/Planning/UDO-Rewrite-2025/2025-UDO-Rewrite-Text.pdf
• Key Sections:
  • Article 4.05(B) (Short-Term Rental Use-Specific Standards)
  • Article 3 (District Specific Standards - Use Tables)
  • Chapter 138-25 (Hotel Tax Provisions - referenced but not provided)

Important Notes for Investors:

1. Effective Date: New UDO effective June 9, 2025 - verify current compliance status
2. Primary Residence Requirement: Strict enforcement of this requirement is critical
3. License Renewal: Tourist Rooming House License must be renewed annually
4. Tax Compliance: Hotel tax compliance is mandatory and monitored
5. Inspection Rights: Properties are subject to health department inspections
6. Zoning Verification: Confirm current zoning classification before purchasing property

This guide provides the regulatory framework for short-term rental operations in Franklin, WI. Investors should contact the appropriate city departments for current application procedures, fee schedules, and any recent regulatory updates.