Thinking about turning a Williamson County property into a short-term rental? You are not alone. Demand tied to Franklin events and Nashville proximity makes the idea appealing, but the rules are local and can be confusing. In this guide, you will learn how permitting, zoning, and taxes typically work across the county, what to check city by city, and how to model costs so your numbers hold up. Let’s dive in.
STR basics in Williamson County
Short-term rental rules are set by each city or town. There is no single countywide code that covers every municipality. You need to confirm regulations where the property sits and understand state tax obligations.
Local governments use common tools to manage STRs. You will see zoning-based permissions, permits or registrations, and operating standards like occupancy and parking. Many also require safety measures, inspections, and a 24/7 local contact. Enforcement often includes fines and possible permit suspension for repeat issues.
Taxes matter. Hosts are usually responsible for state sales or lodging taxes and local lodging and business taxes. Even if a platform collects some taxes, you are still responsible for verifying registration and remittance.
Permit paths and zoning
Most municipalities use one of these approaches. Confirm which applies to your address before you buy or list.
- Registration or administrative permit: Annual application, fee, and proof of compliance with operating rules.
- Special or conditional use permit: Planning or board approval with possible public notice and custom conditions.
- Prohibited: Some zones do not allow STRs.
- Owner-occupied vs non-owner-occupied: On-site hosts are often treated differently than investor units.
Common zoning outcomes
- Residential: Often restricted in low-density areas, sometimes allowed in certain multi-family zones.
- Commercial or mixed-use: More likely to allow lodging uses.
- Agricultural or rural: Rules vary, especially for large lots or accessory uses.
- ADUs: May face separate rules or prohibitions.
City-by-city checklist
Use this section as a quick due diligence guide for the municipalities most relevant to Williamson County buyers and investors.
City of Franklin
- Confirm whether STRs are defined and allowed in the parcel’s zoning district.
- Ask planning if registration is administrative or if a conditional use permit is required.
- Verify any caps, spacing rules, and transfer limits on sale.
- Check lodging tax and business tax registration with the city’s finance office.
City of Brentwood
- Confirm permissibility in single-family districts versus mixed-use or commercial.
- Ask about owner-occupied versus non-owner distinctions.
- Verify any inspection or safety requirements prior to operation.
- Register for local lodging and business taxes if required.
Town of Nolensville
- Review the town’s definition of short-term rental and any permit program.
- Confirm operating standards like occupancy, parking, and quiet hours.
- Ask whether permits are annual and if they are transferable.
- Verify lodging tax and business license obligations.
City of Spring Hill (Williamson County portion)
- First confirm the property lies within Spring Hill city limits in Williamson County.
- Check whether your zoning allows STRs and whether a conditional use approval is needed.
- Confirm city lodging tax and filing schedule.
- Verify inspection or renewal steps.
Town of Thompson’s Station
- Ask planning whether STRs are permitted in residential and agricultural districts.
- Determine if approval is administrative or requires a hearing.
- Confirm safety and parking standards.
- Verify local tax registration.
Town of Fairview
- Confirm how the town defines STRs and whether permits are issued.
- Ask about occupancy, noise, and trash requirements.
- Verify local lodging and business tax registration.
College Grove and Arrington (unincorporated areas nearby)
- If outside a town or city, confirm you are in unincorporated Williamson County.
- Ask the county planning department how STRs are treated in your zoning district.
- Verify whether the county requires registration or inspections.
- Confirm state and any county-level tax obligations.
Unincorporated Williamson County
- Confirm whether county zoning addresses STRs in your district.
- Ask if a registration or permit is required and whether inspections are part of the process.
- Verify any local lodging or business tax and the filing schedule.
Operating standards to plan for
Most jurisdictions adopt rules to reduce nuisance and improve safety. Build these into your setup and budget.
- Occupancy limits set by bedrooms or square footage
- On-site parking plan and clear guest instructions
- Trash and recycling pickup procedures
- Quiet hours and rules for outdoor noise and gatherings
- 24/7 local contact who can respond promptly
- Posted emergency information and house rules
- Insurance documentation suitable for STR use
- Safety items such as smoke and CO detectors, fire extinguishers, and egress clarity
Taxes and registration
Taxes are a key piece of compliance. Plan your steps before your first booking.
- State registration: Short-term stays are generally subject to state sales or lodging taxes, which require registering with the state revenue department.
- Local lodging tax: Cities and towns often assess a transient occupancy or hotel tax. Confirm rates and filing frequency with the local finance office.
- Local business tax: Many localities require a business license or privilege tax registration for STR hosts.
- Marketplace facilitator collection: Platforms may collect and remit some taxes on your behalf. You still need to verify what is collected, keep records, and file any required returns.
- Cleaning fees and add-ons: Confirm how ancillary charges are taxed and reported.
Investor modeling in Williamson County
Your numbers should account for compliance costs and realistic demand. Williamson County demand often follows Franklin events and Nashville proximity, but seasonality and minimum-stay rules can change outcomes.
Build conservative scenarios that include:
- One-time costs: permits, safety upgrades, insurance changes, possible conditional use hearing fees
- Ongoing costs: renewals, inspections, utilities, cleaning, linens, platform fees, management fees
- Taxes: effective tax load after state and local lodging taxes and sales taxes
- Operating limits: minimum nights, caps, or spacing rules that could reduce occupancy
- Regulatory risk: potential for rule changes, moratoria, or nontransferable permits affecting exit value
Step-by-step due diligence
Follow this checklist before you write an offer or list an STR.
- Confirm the property’s jurisdiction and whether it is inside city limits or unincorporated county.
- Read the local code sections that define and regulate STRs.
- Request a zoning verification letter from the planning department for the parcel.
- Confirm whether registration is administrative or if a conditional use permit is required, and get the fees and timeline.
- Register for state taxes and with the city or town finance office for lodging and business taxes as required.
- Check HOA covenants and get written confirmation about STR permissibility.
- Inspect for safety requirements and price any needed upgrades.
- Obtain STR-appropriate insurance quotes with clear liability limits.
- Estimate ongoing expenses and conservative revenue assumptions by season.
- Include a contingency for possible fines or nonrenewal risk.
- Confirm what taxes platforms collect and what you still need to file.
- Draft your operating plan: 24/7 contact, parking, trash, and guest rules.
- Do not list until all permits and registrations are approved and on file.
How Kathy helps
You do not have to navigate this alone. Kathy combines local policy insight with investor-focused modeling to help you move with clarity.
- Regulatory review and site assessment: She checks your address against local zoning, outlines the likely permit path, and flags operating constraints early.
- Cash-flow modeling: Scenario-based pro formas that include occupancy, ADR ranges, permit and inspection costs, insurance, platform fees, and tax obligations.
- Compliance cost planning: Line-item estimates for safety upgrades, permit fees, renewals, and inspections so you can budget with confidence.
- Coordination roadmap: Who to call at planning, codes, and finance, plus the right questions to get written answers.
- Market context and referrals: Local performance context for Franklin and greater Williamson County, and introductions to experienced STR managers, inspectors, permit expeditors, and land-use attorneys.
When you are ready to evaluate a purchase or reposition an existing property, get expert guidance tailored to Williamson County. Connect with Kathy Danner to schedule a free consultation.
FAQs
What is a short-term rental in Williamson County?
- Most cities define an STR by stays under 30 days, but the exact definition and rules vary by municipality. Always confirm the local code where the property sits.
Do I need a permit to operate an STR?
- Many jurisdictions require a registration or a conditional use permit, plus renewals. Check with the planning or codes department for your address and zoning district.
How are STRs taxed in Tennessee and locally?
- STRs generally trigger state sales or lodging taxes and local lodging and business taxes. Platforms may collect some taxes, but you remain responsible for registration and verification.
Can my HOA block short-term rentals?
- Yes. Private covenants can be stricter than city rules and may prohibit STRs. Get written confirmation from your HOA or property manager before moving forward.
Are STR permits transferable when I sell?
- Many permits are nontransferable and expire upon sale, while others allow transfer with notice. Confirm the policy in the city or town where the property is located.