Franklin, TN Short-Term Rentals: Registration Rules (2026)

Franklin's STVR registration process is administered through three layers of government that all must be addressed before the dwelling is advertised or booked. Step one is the city zoning and use eligibility check at the Building and Neighborhood Services Department, 109 3rd Avenue South (615-791-3217): confirm the property is eligible (owner-occupancy required for new permits in residential zones since December 2019), confirm one STVR per lot, and confirm the dwelling can support the proposed occupancy. Step two is the STVR use-permit application filed with Building and Neighborhood Services; the packet includes property identification, owner-occupancy attestation where applicable, listing capacity, parking diagram, and supporting documents. Step three is the compliance inspection conducted by a Building and Neighborhood Services inspector covering life-safety (smoke alarms in each bedroom and on each floor, CO detectors where required, fire extinguishers, code-conforming egress under Title 12 of the Franklin Municipal Code and adopted IPMC), parking (adequate on-site spaces for stated occupancy), septic-system approval where the property is on septic, and proof of insurance covering paid STR activity. Step four is issuance of the 12-month compliance certificate which states the property's maximum permitted occupancy, the operator's contact information, and the expiration date; the certificate must be in force during all advertised and booked stays and must be renewed annually with a fresh inspection. Step five is the $15 City of Franklin business license registration (Tennessee minimal-activity license, classification 3 for accommodations, with threshold of $10,000 annual taxable gross receipts above which the standard business tax applies). Step six is registration for the City of Franklin 4% hotel-motel tax under Title 5 of the Franklin Municipal Code, administered by the Franklin Finance Department with monthly filing required. Step seven is registration with the Williamson County Business Tax Department (615-790-5732) for the 4% county hotel/motel tax. Step eight is registration with the Tennessee Department of Revenue for the 7% state sales tax under TCA 67-6-202 and the 1.5% state hotel/motel privilege tax under TCA 67-4-1402. Operators booking through Airbnb, VRBO, or Booking.com may rely on the marketplace facilitator collection (Tennessee's Jan 1 2021 law at TCA 67-4-708) for state and local taxes on platform-booked stays, but registration with the city, county, and state is still required and direct (off-platform) bookings remain the operator's full responsibility.