Franklin is one of the most desirable short-term rental markets in Middle Tennessee, but the city does not hand out permits like parking passes. The cap on non-owner-occupied short-term rentals means a new permit is hard to get — and that makes an existing permit valuable. The question I get lately is whether you can buy or sell that permit on its own.
The answer is not really. A short-term rental permit is tied to a specific owner and a specific property. You can't peel it off one house and stick it on another. But there is a structure that lets the permit effectively transfer when the property changes hands: the LLC.
If the property is owned by an LLC, and the LLC holds the active short-term rental permit, the permit is an asset of that LLC. When you buy the LLC's interest — usually through a membership interest purchase or an asset purchase that includes the LLC — the permit stays with the entity. The property doesn't change legal owners in a way that triggers a new permit application. The LLC still owns the real estate. The permit remains in the same name it was issued in.
This matters in Franklin specifically because the city has capped non-owner-occupied STRs in certain zoning districts. If you find a property you want to operate as an Airbnb, and the current owner is an LLC with a grandfathered or approved permit, the value of that permit can be real. I've seen it priced into the deal.
But it's not automatic. The permit has to be active and in good standing. The LLC has to be current with the state, its registered agent, and any franchise taxes. The property itself has to comply with Franklin's rules: proper zoning, adequate parking, insurance, and occupancy limits. And you have to buy the deal correctly — a standard deed transfer to a new individual owner often breaks the chain, which can kill the permit.
This is also where a lot of buyers get tripped up. They think they're buying an STR, but they're buying a house and assuming the LLC is just a convenience. If you don't structure the purchase to keep the LLC intact, the city may treat the transfer as a new owner application — and if the cap is full, you don't get a seat.
Sellers, this is worth understanding too. If you've built a permitted Franklin STR inside an LLC, the permit is part of what you're selling. Market it that way. Show the buyer the active permit, the city's approval letter, and the LLC's good standing. A buyer who understands the value will pay more than a buyer who doesn't.
A few practical notes. Always confirm the permit status directly with the City of Franklin's planning department before you close — don't trust a screenshot. Run a title search to make sure the LLC actually owns the property free of surprises. And have a real estate attorney draft the purchase documents. This is not a do-it-yourself structure. One wrong clause and the permit can disappear at the closing table.
I am not an attorney and this is not legal advice. What I am is an agent who has watched these deals get made and watched them get blown up. If you're looking at a Franklin STR with a permit held in an LLC, let's walk through it together before you write the offer. The permit might be the most valuable thing in the whole deal.
