Short-term rentals in Franklin, explained properly.

The owner is responsible for the STVR complying with the Municipal Code, the zoning ordinance and the adopted construction codes. The owner must keep the City updated with the current name, telephone number, address and email address of the owner and of a person or business (the "responsible party") residing or located within 25 miles of the STVR who is responsible for addressing all maintenance and safety concerns (Sec. 13-203). The name and telephone number of the local responsible party must be conspicuously posted inside the unit, and the responsible party must answer calls 24 hours a day, seven days a week during each rental period (Sec. 13-213).

Proof of insurance showing homeowner's fire, hazard and liability insurance must be presented to BNS annually. Liability coverage must have limits of not less than $1,000,000.00 per occurrence and must be continuous while the STVR is in operation (Sec. 13-204).

If the STVR unit shares a common wall or a common driveway with another property owner, proof of written notification to that neighbouring owner or owners, given before the application is filed, must be submitted to BNS (Sec. 13-205).

The maximum number of occupants permitted on an STVR property at any one time may not exceed ten. Simultaneous rental to more than one party under separate contracts is not allowed. The occupancy maximum must be conspicuously posted within the unit (Sec. 13-211).

The principal renter of an STVR unit must be at least 21 years of age (Sec. 13-210).

Sec. 13-209 says no food shall be prepared for or served to the transient by the owner or responsible party.

The STVR must have approved smoke alarms meeting Underwriters Laboratory (UL) 217 standards installed in all sleeping areas, in every room in the path of the means of egress from the sleeping area to the door leading from the sleeping unit, and in each story within the sleeping unit, including basements (Sec. 13-208).

All STVR occupants must abide by the noise restrictions in Municipal Code Title 11, Chapter 4 (offenses against the peace and quiet) and the waste management provisions of Title 17, including Sec. 17-203 (premises to be kept clean) (Sec. 13-207). Those provisions were not read for this page.

The name and telephone number of the local responsible party and the certificate of use and occupancy must be conspicuously posted within the unit (Sec. 13-213), and the occupancy maximum must also be posted (Sec. 13-211).

Signs, advertising or any other display on the property indicating that the dwelling unit is being used, in whole or in part, as an STVR are prohibited under the applicable provisions of the zoning ordinance (Sec. 13-206).

Zoning Ordinance Sec. 2.2.4, effective July 1, 2024, says the use regulations for short-term vacation rentals in that Ordinance do not apply to property legally established and issued a permit as a short-term vacation rental (as defined by T.C.A. § 13-7-602) before the effective date, until grandfathering ends. Under T.C.A. § 13-7-603 such a rental is subject to the law in place when it was being used as an STVR until the property is sold, transferred, ceases to be used as an STVR for a period of 30 continuous months, or has been in violation of generally applicable local laws three or more separate times (T.C.A. § 13-7-604). If ownership changes to a family member (related by blood, marriage, civil union or adoption), the grandfathering protections continue. The state statutes themselves were not read; this describes the City's ordinance text.

Upon three or more complaints (including calls to the Franklin Police Department) within a calendar year about an STVR permit, BNS must notify the permit holder in writing. If BNS determines that violations of the section or any other ordinance or law relating to STVRs have occurred, the right to operate may be revoked by action of the board of mayor and aldermen. Before the revocation action goes on the board's agenda, BNS must give the responsible party 15 days' written notice of the alleged violations (Sec. 13-216). The Appendix A fee and penalty schedule was not read.

Renting a home, cabin, condominium or room for lodging is subject to Tennessee's 7% state sales tax and the local sales tax rate where the rental is located. The Tennessee Department of Revenue administers both. Sales tax is charged on the full price of the stay, including required fees such as cleaning and booking fees.

Tennessee sales tax does not apply to a room or home rented to the same person for 90 or more continuous days. Local occupancy taxes apply only to short-term rental units rented for 30 days or less and stop applying on day 31; for rental agreements made, renewed or amended on or after July 1, 2025, occupancy tax collected on days 1 to 30 is not refunded.

The Tennessee Department of Revenue says property owners and property management companies with over $100 a month in taxable sales must register with the Department and collect and remit sales tax. If you list only through an online platform that is a marketplace facilitator, the platform collects and remits sales tax on those bookings and you should keep records showing the rentals went through it. Bookings you take directly, outside a platform, are your responsibility.

Online platforms that are marketplace facilitators collect and remit Tennessee sales tax on bookings made through them. Since January 1, 2021, short-term rental platforms have also collected local occupancy taxes on their bookings and paid them to the Department of Revenue, so the owner does not collect local occupancy tax on those bookings.

Many Tennessee cities and counties charge their own occupancy tax on short-term rental stays. For bookings you take yourself (not through a platform), you collect it and pay it directly to the local government where the rental is, not to the state. The Department of Revenue advises every owner, including those who rent only through platforms, to contact the local officials, because there may be local reports or requirements.