Vacation Rentals vs. Commercial Properties: RRC’s Ruling Could Save You Time and Paperwork

The Texas Propane Gas Association (TPGA) recently received a question from a member regarding whether Airbnb-type properties are considered commercial properties. TPGA sought clarification from the Railroad Commission (RRC) and petitioned the RRC’s legal team to avoid categorizing these properties as commercial, thereby now exempting them from requiring a Form 501 filing or inspection.

The Railroad Commission (RRC) Legal Team has determined that “single-family” residences, whether used as primary or secondary vacation rental properties (such as Airbnb or VRBO), should not be classified as commercial properties. As a result, these properties will no longer require the submission of Form 501 or mandatory inspections.

However, it’s important to note that bed and breakfast establishments, hotels, and motels still fall under commercial properties. They continue to require Form 501 filings and are subject to inspections.