Franklin Airbnb Rules & Investment Guide (2026)

First confirm that the address is inside Franklin city limits and that the ownership, lot, and dwelling arrangement satisfy current zoning. Apply to Building and Neighborhood Services to update the certificate of use and occupancy, obtain required City and Williamson County business licenses, register for applicable taxes, secure compliant insurance, and wait for approval before operating or advertising.

Franklin permits no more than one STVR per lot and requires the lot owner to be a permanent occupant. A single dwelling may be rented only while the owner temporarily vacates it. Where a principal dwelling and accessory dwelling share the lot, one may be the permanent residence and the other the rental. Ask the City to confirm the parcel and proposed arrangement.

Use the electronic application portal linked from the City's short-term vacation rental page. Review the current checklist, Municipal Code, and zoning standards, then submit the required property, ownership, insurance, responsible-party, and dwelling information. An application is required every 365 days, and submission does not authorize operation until the City approves it.

The Municipal Code limits an STVR to four sleeping rooms and ten occupants, prohibits compensation for occupancy shorter than 24 hours, caps a guest stay at 21 consecutive days, and prohibits simultaneous rental to separate parties. Current zoning standards also impose a 113-night limit in a rolling 12-month period for the permitted STVR use.

Post the certificate, maximum occupancy, and local responsible-party contact inside. The responsible party must be within 25 miles and answer calls around the clock during rentals. Follow noise and waste rules, use a principal renter who is at least 21, do not prepare or serve food to transient guests, and do not place exterior STVR advertising signs on the property.

Franklin requires annual proof of fire, hazard, and liability insurance, with at least $1,000,000 in liability coverage per occurrence and continuous coverage while operating. Approved smoke alarms must be installed in sleeping areas, rooms along sleeping-area egress paths, and every story, including basements. Confirm any additional construction or fire requirements with the City.

If the STVR shares a common wall or common driveway with property owned by someone else, the application must include proof of written notice to that neighboring owner before filing. Private covenants, association rules, leases, mortgages, and insurance restrictions remain separate constraints even when City approval is available.

The City says most Franklin businesses need licenses from both Franklin and Williamson County. The owner or responsible party must collect and remit applicable room, occupancy, and sales taxes. City hotel-motel returns and payments are generally due on the 20th of each month. Confirm current license classification, marketplace collection, direct-booking filing, and tax rates with the responsible offices.

Verify legal eligibility before projecting revenue. Model only the approved dwelling configuration and available rental nights, then use property-specific comparable evidence and include taxes, insurance, utilities, cleaning, management, maintenance, reserves, and financing. Stress-test fewer bookings and higher costs. Citywide revenue, ADR, occupancy, appreciation, ROI, or payback claims do not establish a property's viability.

For STVR approval, contact Neighborhood Resources Supervisor Ben Onisa at ben.onisa@franklintn.gov or 615-550-6727. For zoning and location questions, call Building and Neighborhood Services at 615-794-7012. For City business licensing or hotel-motel tax, contact BankingAndBusiness@franklintn.gov or 615-794-4572. Williamson County licensing is handled by the County Clerk at 615-790-5732.