Franklin, TN Short-Term Rentals: Host Presence Rule (2026)

Franklin's host-presence rule is built into the owner-occupancy mandate adopted by the Board of Mayor and Aldermen in December 2019: any short-term vacation rental in a residential zoning district that receives a use permit after the ordinance's effective date must be owner-occupied, meaning the homeowner resides at the dwelling. This is structurally different from and stricter than the host-presence frameworks in jurisdictions that allow non-owner-occupied STRs but require a 24/7-reachable local agent or in-state contact (such as Nashville's framework, which distinguishes Type 1 owner-occupied from Type 2 non-owner-occupied with both still permitted). Franklin made the policy choice to eliminate non-owner-occupied STVRs in residential zones entirely for any new permit, on the rationale that absentee-investor STVRs are categorically incompatible with single-family residential neighborhood character. The owner-occupancy attestation is part of the use-permit application; the operator must affirm that they reside at the dwelling. The compliance inspector confirms that the dwelling shows evidence of permanent occupancy (furniture, personal effects, ongoing utilities consistent with residential use). The exception is legacy non-owner-occupied STVRs that were legally permitted and operating before the December 2019 effective date. These properties are protected by the Tennessee Short-Term Rental Unit Act (TCA 13-7-603) and may continue to operate as non-owner-occupied STVRs under the rules in place at the time of their original permit, subject to the same insurance, life-safety, parking, septic, and tax requirements as any STVR. Legacy protection terminates if the property is sold or transferred outside the family, ceases STVR use for 30 continuous months, or accumulates three or more violations of generally applicable local laws. Once terminated, the property cannot be re-permitted as a non-owner-occupied STVR. The practical effect is a fixed and shrinking inventory of non-owner-occupied legacy STVRs in Franklin, with all new STVR activity in residential zones funneled into the owner-occupied configuration. The owner-occupancy rule does not necessarily require the owner to be physically present during every guest stay (the rule is residency-based rather than presence-based), but the operational reality is that owner-occupied STVRs typically function in a hosted or partially-hosted mode rather than as detached vacation rentals.