How Franklin Handles Short-Term Rentals: A Practical Guide

Franklin maintains 104 local ordinances across all categories, and 10 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.

Occupancy Limits

Franklin's short-term vacation rental program does not impose a flat citywide guest headcount but caps occupancy through three intersecting standards verified at compliance inspection: the bedroom count of the dwelling as legally permitted (no marketing of non-bedroom rooms as sleeping space), septic-system capacity where applicable, and life-safety equipment (smoke detectors in each bedroom and on each floor, fire extinguishers, and code-conforming egress from each rented bedroom). Only one STVR is permitted per lot - operators cannot subdivide a parcel into multiple separately-permitted STVRs. The compliance certificate states the property's maximum permitted occupancy; exceeding it is a use-permit condition violation that can trigger non-renewal and, for non-owner-occupied legacy STVRs under TCA 13-7-603, counts toward the three-strike legacy-termination threshold.

Key details: Citywide Numerical Guest Cap: Not codified; set per-property at compliance inspection. Occupancy Determinants: Permitted bedroom count + septic capacity + life-safety equipment. One STVR Per Lot: Yes (categorical rule under Franklin Zoning Ordinance). Bedroom Standard: Each rented bedroom must have code-conforming egress (door or egress window). Life-Safety Code: Franklin Municipal Code Title 12 + adopted IPMC.

Renting an STVR at an occupancy level above the maximum stated on the compliance certificate is a use-permit condition violation enforceable by Building and Neighborhood Services, with citation, daily fines, and non-renewal of the 12-month compliance certificate. Marketing a non-bedroom room as a rentable sleeping space (basement bonus room, loft, converted attic without code-conforming egress) is a material misrepresentation that may immediately void the compliance certificate. Operating a second STVR on the same lot, or subdividing the dwelling for two separate STVR listings, violates the one-STVR-per-lot rule and is independently actionable. Failure to maintain required life-safety equipment (smoke alarms, CO detectors, fire extinguishers, egress) is a Title 12 Property Maintenance Code violation enforceable by Building and Neighborhood Services and may trigger an emergency stop-use order pending re-inspection. Septic-capacity exceedance is independently enforceable by the Williamson County Health Department / Tennessee Department of Environment and Conservation. For legacy non-owner-occupied STVRs, three occupancy-, septic-, or life-safety-related citations terminate TCA 13-7-603 grandfather protection permanently.

Insurance Requirements

Franklin requires proof of insurance as a condition of the short-term vacation rental compliance certificate; the operator must provide documentation of property and liability insurance covering the STVR activity to the Building and Neighborhood Services Department at initial permitting and annual renewal. Franklin does not publish a specific minimum dollar amount in its STVR ordinance (unlike Nashville's framework or some other Tennessee jurisdictions), but the policy must demonstrably cover paid short-term rental activity - which means a standard ISO HO-3 homeowner's policy without a home-sharing or short-term-rental endorsement will not satisfy the requirement because the policy's business-pursuits exclusion voids coverage for paid rental. Industry-standard practice for Franklin operators is a $1,000,000 to $2,000,000 commercial STR liability policy or a dedicated STR endorsement on the homeowner's policy. Platform host-protection programs (Airbnb AirCover, VRBO Liability Insurance) are typically treated as supplemental, not primary.

Key details: Proof of Insurance Required: Yes (compliance certificate condition). Specific Dollar Minimum: Not codified in Franklin STVR ordinance. Verification: Building and Neighborhood Services compliance inspector at permit and annual renewal. Standard Homeowner's HO-3: Generally inadequate; business-pursuits exclusion voids coverage for paid STR activity. Recommended Forms: STR endorsement on HO-3 or dedicated commercial STR policy.

Operating an STVR without the proof of insurance required by the compliance certificate is a use-permit condition violation enforceable by Building and Neighborhood Services, with consequences including citation, daily fines, and non-renewal or suspension of the compliance certificate. Submitting a standard homeowner's policy declarations page without a home-sharing or short-term-rental endorsement may satisfy the paperwork check but leaves the operator functionally uninsured for STVR claims under the policy's business-pursuits exclusion; a guest injury or property-damage claim arising from paid rental activity is likely to be denied by the carrier, leaving the operator personally liable for defense costs, judgments, and settlements that can run into hundreds of thousands of dollars. Submitting a falsified or expired insurance certificate is a material misrepresentation that may immediately void the compliance certificate and counts as a generally applicable local law violation for TCA 13-7-603(a)(3) three-strike purposes. Operators relying solely on platform host-protection programs face documented coverage gaps including total non-coverage of off-platform direct bookings, claim-handling delays, and exclusions for intentional acts and certain property categories.

Night Caps

Franklin does not impose a fixed annual cap on the number of nights a licensed short-term vacation rental may host. There is no '90-day,' '120-day,' '113-day,' or '180-day' booking limit codified in the Franklin Zoning Ordinance or the STVR compliance program. A property with a current use permit and 12-month compliance certificate may book up to 365 nights per year provided the operator continues to satisfy the owner-occupancy rule (for new residential-zone permits issued after December 2019), the one-STVR-per-lot rule, occupancy/parking/insurance/septic conditions, citywide tax obligations, and the no-violation backstop. Scale is controlled instead through (1) the owner-occupancy requirement that anchors the operator to the property, (2) the categorical one-STVR-per-lot rule, (3) annual compliance-certificate renewal, and (4) the TCA 13-7-603(a)(3) three-strike rule that terminates legacy non-owner-occupied protection on three local-law violations.

Key details: Annual Night Cap: None codified by Franklin TN. Maximum Bookable Nights: Up to 365 per year if all conditions are met. Common Misinformation: Third-party '113-day' figure appears conflated with another jurisdiction; not in Franklin TN ordinance. Scale Control - Owner Occupancy: Required for new residential-zone permits since Dec 2019. Scale Control - One Per Lot: Categorical.

Because Franklin does not codify a night cap, there is no citation for 'exceeding' a night limit. However, operating without a current use permit and compliance certificate at any point during the calendar year is enforceable as a zoning violation under the Franklin Zoning Ordinance, with citation, daily fines (up to $50 per day plus court costs per State Law), and compliance-certificate denial. Operating an STVR with the compliance certificate expired (the certificate is valid for only 12 months and must be renewed annually) is an active violation. Patterns of complaints tied to a Franklin STVR address are documented by Building and Neighborhood Services and may be cited at compliance-certificate renewal as grounds for non-renewal, functioning as a behavior-based scale limit even without a hard night cap. For non-owner-occupied legacy STVRs, three violations of generally applicable local laws terminate the TCA 13-7-603 legacy protection permanently - meaning a high-volume legacy STVR with three citations in its operational life loses STR eligibility forever on that parcel, an effective hard stop that does not depend on a numerical night-cap rule.

The rules around night caps in Franklin lean permissive, but that does not mean anything goes.

Parking Rules

Franklin's short-term vacation rental compliance program requires adequate off-street parking for all guest vehicles as a condition of the use permit and the 12-month compliance certificate; the standard is verified by Building and Neighborhood Services compliance inspectors at the time the permit is issued and at annual renewal. Franklin does not publish a specific per-bedroom off-street parking ratio in its zoning ordinance for STVRs (unlike some other Middle Tennessee jurisdictions); instead, the inspector confirms that the property has enough on-site parking to accommodate the maximum guest occupancy without forcing guests to spill onto neighborhood streets. Guests are subject to citywide on-street parking restrictions; persistent guest-parking complaints can be cited at certificate renewal and count toward the three-strike legacy-termination threshold under TCA 13-7-603(a)(3) for non-owner-occupied legacy STVRs.

Key details: STR Parking Standard: Adequate on-site parking for guest vehicles (compliance-inspection verified). Per-Bedroom Numerical Ratio: Not codified for STVRs; inspector assesses against listing occupancy. Underlying Residential Minimum: Typically 2 off-street spaces per single-family dwelling under Franklin Zoning Ordinance. Verification: Building and Neighborhood Services compliance inspector at permit and annual renewal. On-Street Parking: Subject to Title 15 of Franklin Municipal Code and posted neighborhood restrictions.

Operating an STVR without adequate off-street parking as required by the compliance certificate is a use-permit condition violation enforceable by Building and Neighborhood Services, with consequences including citation, daily fines, and non-renewal of the 12-month compliance certificate. On-street parking violations by STVR guests (blocking driveways, parking within prohibited distances of fire hydrants, intersections, or crosswalks, violating posted neighborhood time-limit rules) are enforced under Title 15 of the Franklin Municipal Code by the Franklin Police Department with parking citations to the vehicle owner. Patterns of guest-parking complaints tied to a Franklin STVR are documented and may be cited at compliance-certificate renewal. For non-owner-occupied legacy STVRs, parking-related local-law violations count toward the three-strike threshold at TCA 13-7-603(a)(3) that permanently terminates the property's TN STR Act legacy grandfather protection. The operator (permit holder), not just the guest, is responsible for the operational condition and may be cited for repeated guest-parking failures even where the individual incidents are committed by guests rather than the operator.

Registration Rules

Registering a short-term vacation rental in Franklin is a multi-step process administered by the Building and Neighborhood Services Department (109 3rd Avenue South, 615-791-3217) in coordination with the Franklin Finance Department, the Williamson County Business Tax Department, and the Tennessee Department of Revenue. Required steps: (1) confirm zoning eligibility and owner-occupancy where applicable; (2) submit STVR use-permit application to Building and Neighborhood Services; (3) pass compliance inspection covering life-safety, parking, septic where applicable, and insurance verification; (4) receive 12-month compliance certificate (annually renewable); (5) obtain $15 city business license; (6) register for City of Franklin 4% hotel-motel tax under Title 5; (7) register with Williamson County Business Tax Department for 4% county hotel-motel tax (615-790-5732); (8) register with Tennessee Department of Revenue for 7% state sales tax and 1.5% state privilege tax.

Key details: Lead Agency: Building and Neighborhood Services Department (615-791-3217). Application Location: 109 3rd Avenue South, Franklin, TN 37064. Approvals Required: Use permit + compliance inspection + 12-month compliance certificate + $15 business license + tax registrations. Compliance Inspection Covers: Life-safety + parking + septic (where applicable) + insurance verification. Compliance Certificate Validity: 12 months; annually renewable.

Operating a short-term vacation rental in Franklin without completing the full registration sequence is enforceable as a zoning violation under the Franklin Zoning Ordinance by Building and Neighborhood Services, with penalties of up to $50 per day plus court costs per State Law and potential prosecution in Franklin Municipal Court. Specific failure modes include: operating without an approved use permit (categorical violation - advertising or booking before permit issuance); operating without the compliance inspection and 12-month compliance certificate (independent violation); operating with an expired compliance certificate (use permit is conditional on annual renewal); operating without the $15 city business license (Tennessee minimal-activity violation); failing to register for the city's 4% hotel-motel tax under Title 5 of the Franklin Municipal Code (Finance Department enforcement); failing to register with Williamson County's 4% hotel/motel tax (county Business Tax enforcement); failing to register with the Tennessee Department of Revenue for state sales tax and privilege tax (state-level penalties and tax liens). Submitting falsified zoning, ownership, owner-occupancy, insurance, septic, or life-safety documentation is a material misrepresentation that may immediately void the compliance certificate and counts toward the TCA 13-7-603(a)(3) three-strike threshold for legacy non-owner-occupied STVRs. Building and Neighborhood Services actively monitors listing platforms (Airbnb, VRBO, Booking.com) and cross-references displayed addresses against the city's permitted-STVR database; unlicensed operations are pursued under the standard penalty structure.

This is not one of those rules that cities tend to ignore. Franklin actively enforces its registration rules requirements.

Taxes & Fees

Short-term vacation rentals in Franklin TN collect a four-layer tax stack on every reservation of fewer than 30 continuous days: 7% Tennessee state sales tax under TCA 67-6-202, 1.5% Tennessee state hotel/motel privilege tax, 4% Williamson County hotel/motel occupancy tax administered by the Williamson County Business Tax Department (615-790-5732), and 4% City of Franklin hotel-motel tax under Title 5 of the Franklin Municipal Code, for a combined approximate burden of 16.5% on each STVR stay. Operators also pay a $15 city business license registration fee per property. Marketplace facilitators (Airbnb, VRBO, Booking.com) are required under Tennessee law (effective January 1, 2021) to collect and remit the state sales tax, state privilege tax, and local hotel-motel tax on platform-booked stays directly to the Tennessee Department of Revenue, which then disburses local-tax revenues to Franklin and Williamson County. Direct (off-platform) bookings remain the operator's full responsibility.

Key details: Tennessee State Sales Tax: 7% (TCA 67-6-202). Tennessee State Hotel/Motel Privilege Tax: 1.5% (TCA 67-4-1402; stays under 90 days). Williamson County Hotel/Motel Occupancy Tax: 4% (private act + TCA 67-4-1425 framework). City of Franklin Hotel-Motel Tax: 4% (Franklin Municipal Code Title 5). Combined Approximate Tax Burden: ~16.5% on each STVR stay.

Failure to collect and remit the 7% state sales tax under TCA 67-6-202 or the 1.5% state privilege tax under TCA 67-4-1402 is enforceable by the Tennessee Department of Revenue with interest, penalties, and tax-lien remedies available under Tennessee tax-enforcement statutes. Failure to remit the 4% Williamson County hotel/motel occupancy tax is enforceable by the Williamson County Business Tax Department (615-790-5732). Failure to remit the 4% City of Franklin hotel-motel tax under Title 5 of the Franklin Municipal Code is enforceable by the Franklin Finance Department; monthly filing is the standard cadence. Operators relying on Airbnb's automatic tax collection should note that the marketplace collection only covers platform-booked stays - any direct-booked (off-platform) stays remain the operator's direct obligation across all four tax layers. Tax non-compliance is treated as a violation of generally applicable local law for purposes of TCA 13-7-603(a)(3), which means three separate tax-compliance violations can terminate the Tennessee STR Act legacy grandfather protection for a non-owner-occupied STVR. Operating without the $15 city business license is a separate Title 5 violation enforceable by the Franklin Finance Department.

This is not one of those rules that cities tend to ignore. Franklin actively enforces its taxes & fees requirements.

Permit Requirements

Operating a short-term vacation rental (STVR) inside the City of Franklin requires a use permit issued under the Franklin Zoning Ordinance administered by the Building and Neighborhood Services Department (109 3rd Avenue South, 615-791-3217). Franklin's current framework allows only owner-occupied STVRs in residential zoning districts for any new permit issued after the Board of Mayor and Aldermen's December 2019 ordinance, which banned non-owner-occupied short-term rentals citywide as a residential-use protection. Only one STVR is permitted per lot. Legacy non-owner-occupied STVRs that were legally permitted and operating before the ordinance's effective date are protected by the Tennessee Short-Term Rental Unit Act (TCA 13-7-602 to 13-7-606), but that grandfathering ends if the property is sold, transferred outside family, ceases STVR use for 30 continuous months, or accumulates three or more violations of generally applicable local laws.

Key details: Governing Ordinance: Franklin Zoning Ordinance (BOMA December 2019 STVR amendment, carried forward). Lead Agency: Building and Neighborhood Services Department (615-791-3217). Owner-Occupancy Rule (New Permits): Required in all residential zones; homeowner must reside at dwelling. Non-Owner-Occupied STVRs: No new permits since Dec 2019; legacy operators grandfathered under TCA 13-7-603. STVRs Per Lot: One.

Operating an STVR in Franklin without a current use permit and compliance certificate is a zoning violation enforceable by Building and Neighborhood Services and prosecutable in Franklin Municipal Court; Tennessee state law authorizes penalties of up to $50 per day per State Law plus court costs for zoning violations of this type. Operating a non-owner-occupied STVR in a residential zoning district under a permit issued after the December 2019 ordinance is a categorical violation independent of any safety, parking, or noise issue. Three or more violations of generally applicable local laws (noise, parking, occupancy, life-safety) at a legacy non-owner-occupied STVR terminate the TCA 13-7-603 grandfather protection and permanently disqualify the property from continued STVR use. Sale or non-family transfer of the property also extinguishes the legacy protection; the new owner cannot operate as a non-owner-occupied STVR even on the same parcel. Failure to display the city compliance certificate or to remit the city hotel-motel tax monthly to the Finance Department is independently actionable under Title 5 of the Franklin Municipal Code.

Compared to other cities, Franklin takes a harder line on permit requirements. The enforcement and penalty structure reflects that.

Host Presence Rule

Franklin's December 2019 ordinance effectively imposed a strong host-presence requirement on new short-term vacation rentals in residential zoning districts: the dwelling must be owner-occupied, meaning the homeowner must reside at the property. This is among the strictest host-presence frameworks in Middle Tennessee - it does not merely require a local contact, an in-state agent, or hosted operation during stays; it requires the operator to live at the dwelling as their residence. The rule does not apply to legacy non-owner-occupied STVRs that were permitted and operating before the December 2019 effective date and that remain protected under the Tennessee Short-Term Rental Unit Act at TCA 13-7-603, but those legacy operators are a fixed and shrinking inventory (no new ones are permitted, and existing ones lose protection on sale or non-family transfer).

Key details: Owner-Occupancy Required (New Permits): Yes - homeowner must reside at dwelling (Dec 2019 ordinance). Applies To: All new STVR permits in residential zoning districts after Dec 2019 effective date. Local Contact Alternative: Not available - residency required, not just contact. Legacy Exception: Pre-Dec 2019 non-owner-occupied STVRs grandfathered under TCA 13-7-603. Legacy Termination Triggers: Sale (non-family), 30+ months non-operation, 3+ local law violations.

Operating a non-owner-occupied STVR in a Franklin residential zoning district under a permit issued after the December 2019 ordinance is a categorical zoning violation enforceable by Building and Neighborhood Services with citation, daily fines (up to $50 per day plus court costs per State Law), use-permit revocation, and prosecution in Franklin Municipal Court. Falsifying the owner-occupancy attestation on the use-permit application is a material misrepresentation that immediately voids the compliance certificate and is independently actionable. For legacy non-owner-occupied STVRs operating under TCA 13-7-603, three violations of generally applicable local laws (including any zoning, noise, parking, occupancy, septic, or tax violation) terminate the Tennessee STR Act legacy protection permanently - meaning the property loses STR eligibility forever and cannot be re-permitted in any configuration. Sale or non-family transfer of a legacy non-owner-occupied STVR also extinguishes the legacy protection; the new owner cannot operate as a non-owner-occupied STVR even on the same parcel and must either convert to owner-occupied operation (and live at the dwelling) or cease STVR use. 'Family' is defined in TCA 13-7-602 as persons related by blood, marriage, civil union, or adoption.

This is not one of those rules that cities tend to ignore. Franklin actively enforces its host presence rule requirements.

Noise Rules

Franklin does not codify a separate decibel table or quiet-hours schedule that applies only to short-term vacation rentals; STVR guests are subject to the citywide general noise prohibition in the Franklin Municipal Code (Title 11 General Offenses) and to the disturbing-the-peace standards enforced by the Franklin Police Department. The functional teeth on STVR noise come from two parallel mechanisms: (1) the use-permit compliance condition that requires the operator to manage guest behavior and respond promptly to complaints, and (2) the Tennessee Short-Term Rental Unit Act provision at TCA 13-7-603 that strips legacy grandfather protection from any STVR that accumulates three or more violations of generally applicable local laws - which includes noise citations. Operators should post 10 p.m.-7 a.m. quiet hours in house rules and use noise-monitoring devices to avoid the three-strike risk.

Key details: STR-Specific Quiet Hours: Not codified; general municipal ordinance applies. Governing Code: Franklin Municipal Code Title 11 (General Offenses). Enforcement Agency: Franklin Police Department (active); Building and Neighborhood Services (patterns). Measurement Standard: Plain audibility / disturbance. Three-Strike Legacy Termination: TCA 13-7-603(a)(3) - three local law violations end grandfather protection.

Loud or disturbing noise from a Franklin STVR is enforceable under Title 11 of the Franklin Municipal Code by the Franklin Police Department for active disturbances, with fines set by the city's general penalty schedule. The operator (permit holder), not just the guest, is on the hook for the operational condition of the use permit, and patterns of noise complaints at the address can be raised at compliance-certificate renewal as grounds for non-renewal. The most consequential exposure is statewide: under TCA 13-7-603(a)(3), three or more violations of generally applicable local laws (including noise) terminate the Tennessee STR Act legacy grandfather protection, permanently disqualifying a non-owner-occupied STVR that was previously protected. The three-strike rule is property-specific (it attaches to the parcel, not the operator) so transferring the LLC or rebranding the listing does not reset the count. Hosting amplified-event parties, weddings, receptions, or concerts at an STVR is independently actionable as a residential-zone use violation regardless of whether the event triggers a noise citation.

Primary-Residence-Only Rule

Franklin's December 2019 STVR ordinance effectively imposes a primary-residence-only restriction on all new short-term vacation rentals in residential zoning districts: the homeowner must reside at the dwelling, which functionally limits eligibility to the operator's primary or principal residence. Investment properties, second homes, vacation properties not used as a primary residence, and LLC-owned dwellings without a resident owner are all ineligible for new STVR permits in residential zones. Only one STVR is permitted per lot, preventing portfolio scaling on a single parcel. Legacy non-owner-occupied STVRs that pre-date the December 2019 ordinance remain protected under TCA 13-7-603 as long as they remain in compliance and do not trigger termination (sale to non-family, 30-month operational gap, three local-law violations). This framework places Franklin among the strictest primary-residence-only markets in the South, comparable to Boston, Denver, and San Francisco.

Key details: Primary-Residence-Only Restriction (Effective): Yes - owner must reside at dwelling per Dec 2019 ordinance. Investment Properties (New Permits): Banned in residential zones. Second Homes / Vacation Properties: Banned in residential zones if owner does not reside there. LLC / Corporate Ownership Without Resident Owner: Banned in residential zones. Out-of-State / Out-of-Area Ownership: Categorically incompatible with owner-occupancy.

Operating a non-owner-occupied STVR in a Franklin residential zoning district under a permit issued after the December 2019 ordinance is a categorical zoning violation enforceable by Building and Neighborhood Services with citation, daily fines (up to $50 per day plus court costs per State Law), use-permit revocation, and prosecution in Franklin Municipal Court. Submitting a use-permit application that falsely attests to owner-occupancy when the operator does not actually reside at the dwelling is a material misrepresentation that immediately voids the compliance certificate and is independently actionable. Operating multiple STVRs from a single Franklin parcel (subdividing, garage-apartment-plus-main-house, ADU plus main dwelling) violates the categorical one-per-lot rule. For legacy non-owner-occupied STVRs, sale or transfer to a non-family member terminates TCA 13-7-603 legacy protection immediately and permanently; the new owner cannot operate as a non-owner-occupied STVR even on the same parcel. Three violations of generally applicable local laws also terminate legacy protection permanently. Out-of-state or LLC-owned investor purchases of Franklin residential property with the intent to operate as STVR are functionally precluded from the STR market by the owner-occupancy requirement - investors targeting Franklin's residential housing stock should plan for traditional long-term rental or owner-occupied operation instead.

Compared to other cities, Franklin takes a harder line on primary-residence-only rule. The enforcement and penalty structure reflects that.

The Bottom Line

Franklin is tougher than many cities when it comes to short-term rentals. Out of the 10 rules covered here, 5 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.