Short-Term Rentals in Franklin, TN

Franklin maintains 127 local ordinances across all categories, and 7 of those deal specifically with short-term rentals. Here is a breakdown of what the city actually requires, what is prohibited, and where Franklin falls on the strict-to-permissive spectrum compared to other cities.

Short-Term Rental Permits

Franklin requires every short-term vacation rental (STVR), a dwelling with four or fewer sleeping rooms rented for transient stays, to hold a certificate of use and occupancy from Building and Neighborhood Services before operating or even advertising (Sec. 13-202). That certificate must be renewed every 365 days under Sec. 13-214, and the owner must name a responsible party within 25 miles who can address problems around the clock.

Key details: Permit type: Certificate of use and occupancy update. Issuing department: Building and Neighborhood Services (BNS). Renewal cycle: Every 365 days. Sleeping room cap defining STVR: 4 rooms or fewer. Responsible party: Must be within 25 miles.

Operating or advertising an STVR without an updated certificate, or without renewing the application every 365 days, violates title 13, chapter 2. BNS reviews complaints against a permit holder and, after 15 days' written notice of the alleged violations, can bring a revocation action before the board of mayor and aldermen, which can end the right to operate the STVR entirely.

Compared to other cities, Franklin takes a harder line on short-term rental permits. The enforcement and penalty structure reflects that.

Franklin's short-term vacation rental rules only cover stays of 21 consecutive days or less: leases longer than 21 continuous days fall outside the STVR chapter entirely and are treated as ordinary residential tenancies.

Key details: STVR cutoff: 21 consecutive days max. Under 24 hours: payment prohibited. Beyond 21 days: exempt from STVR rules. Max sleeping rooms: 4 per dwelling.

Advertising or structuring a stay to exceed the 21-day cap, or taking payment for a stay under 24 hours, violates Sec. 13-212 and can trigger BNS revocation under Sec. 13-216.

Noise Rules

Franklin requires every short-term vacation rental occupant to follow the city's standard peace-and-quiet noise ordinance and its 'premises kept clean' waste rule. STVRs get no separate, looser noise standard.

Key details: Noise standard: Title 11, ch. 4 applies. Waste standard: § 17-203 premises clean. Complaint threshold: 3+ complaints/year. Enforcement: BNS notice, possible revocation.

A guest disturbing the peace or leaving the premises unclean violates Sec. 13-207. Three or more complaints against one STVR in a year, including police calls, can trigger BNS revocation under Sec. 13-216.

Taxes & Fees

Franklin, Tennessee requires every short-term vacation rental owner or responsible party to collect and remit all room, occupancy, and sales taxes owed under state law or the Municipal Code, per City Code § 13-215. That duty rides on top of a separate $50 annual STVR permitting fee charged under Appendix A, renewed with the yearly application required by § 13-214, and Building and Neighborhood Services enforces both independently of the STVR's insurance and occupancy rules.

Key details: Governing section: Franklin Municipal Code § 13-215. Tax duty: Owner/responsible party remits room, occupancy, sales tax. STVR permit fee: $50.00 annually (Appendix A). Application renewal: Every 365 days, § 13-214. Violation penalty: Up to $50.00 per day per offense.

Appendix A caps STVR chapter violations, including failure to collect or remit the required room, occupancy, and sales taxes, at a maximum of $50.00 per day per offense, with each day of continued noncompliance treated as a new violation. BNS enforces the tax duty through the same certificate-of-use-and-occupancy process that issues the STVR permit, and repeated tax or other STVR violations can support a permit revocation by the board of mayor and aldermen under the chapter's complaint procedure.

Repeat Violator Strikes

Three or more complaints against a Franklin STVR in one calendar year trigger written notice, and the Board of Mayor and Aldermen can revoke the permit after 15 days' notice.

Key details: Trigger: 3+ complaints per calendar year. Includes: Franklin Police Department calls. Revoked by: Board of Mayor & Aldermen. Notice before revocation: 15 days written.

A third complaint in a calendar year triggers formal written notice; continued or additional violations can lead to a board vote revoking the STVR permit entirely.

Compared to other cities, Franklin takes a harder line on repeat violator strikes. The enforcement and penalty structure reflects that.

Insurance Requirements

Franklin requires every short-term vacation rental owner to carry homeowner's fire, hazard, and liability insurance with liability limits of at least $1,000,000 per occurrence, proven annually to Building and Neighborhood Services under Sec. 13-204. Coverage must stay continuous for as long as the STVR operates, and it's one of several conditions, alongside the certificate of use and occupancy, tied to keeping the permit active.

Key details: Minimum liability coverage: $1,000,000 per occurrence. Coverage type: Homeowner's fire, hazard, and liability. Proof filed with: Building and Neighborhood Services (BNS). Filing frequency: Annually. Duration required: Continuous while STVR operates.

Operating an STVR without current proof of $1,000,000 liability coverage on file with BNS violates Sec. 13-204 and puts the certificate of use and occupancy at risk. BNS can act on a lapse discovered through its own review or through the complaint process under Sec. 13-216, and confirmed STVR violations can lead the board of mayor and aldermen to revoke the right to operate the rental.

Occupancy Limits

Franklin caps every short-term vacation rental at ten occupants at any one time, bars renting the same unit to more than one party under separate contracts simultaneously, and requires the maximum to be posted inside the unit under Sec. 13-211. The rental period itself is bounded too: no compensated stay under 24 hours, and no single guest stay longer than 21 consecutive days.

Key details: Occupancy cap: 10 occupants at any one time. Simultaneous rentals: Not allowed to separate parties. Posting requirement: Cap posted inside the unit. Minimum stay: 24 hours (no shorter compensated stay). Maximum stay: 21 consecutive days.

Exceeding the ten-occupant cap, double-booking separate parties simultaneously, or failing to post the occupancy maximum inside the unit violates Sec. 13-211 and the STVR chapter generally. Complaints, including occupancy complaints, feed the review process under Sec. 13-216: three or more complaints against a permit in a calendar year trigger written notice, and after 15 days, BNS can seek revocation of the STVR's right to operate.

The Bottom Line

Franklin is tougher than many cities when it comes to short-term rentals. Out of the 7 rules covered here, 2 are rated strict. If you are a homeowner, renter, or business owner in Franklin, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

All of the above reflects Franklin's municipal code as of our last review. If you need specifics on fines, exemptions, or filing requirements, the detailed ordinance pages linked above have the full breakdown.