• 9 Reasons to Convert your Short-term Rental to Long-term
    Over the past 10 years, there has been incredible growth in short-term rentals. With the onset of COVID-19, things have changed. Find out why long-term rentals are better than short-term rentals.
  • Everything Landlords and Managers Need to Know About Coronavirus
    For landlords, Realtors®, and property managers, here is what you need to know in 2020 in the context of the novel coronavirus outbreak.
  • What Every Landlord Must Know About Fair Housing
    Did you know that you can be in violation of Fair Housing (and get fined for it) if you put “great family neighborhood” in your rental housing advertisement? The Fair Housing Act is a piece of legislation that was created to help create equality in neighborhoods across the country.
  • Top Tips for Managing Multiple Tenants and Roommates
    Many landlords think having multiple roommates will be a burden and damage the property. However, roommates can provide many advantages to landlords.
  • Risks with Venmo, Paypal, and Zelle, for Rent Collection
    Venmo, PayPal, Zelle and direct deposit are not good methods to collect rent for landlords, real estate agents, and managers. Find out why.
  • How to Handle Tenants with Pets and Service and Emotional Support Animals
    Pets and companion animals are becoming more common with tenants. As a landlord, learn how to respond to emotional support and therapy animals. And, learn more about whether to allow pets in your rental.
  • June Newsletter
    Stay up-to-date with the latest in real estate and property management. Discover upcoming trends, expert insights, and essential news to help you navigate the market with confidence.
  • The Best Rental Property Management Software in 2025
    Discover the best rental property management software in 2025. Compare 15 top platforms with features, pricing, and recommendations for every portfolio size.
  • How to Advertise Your Rental Property in California
    Discover how to advertise your rental property in California, attract tenants fast, and maximize your income with our complete step-by-step guide.
  • How to Advertise Your Rental Property in Arkansas
    Discover how to advertise your rental property in Arkansas, attract tenants fast, and maximize your income with our complete step-by-step guide.
  • How to Advertise Your Rental Property in Georgia
    Whether you own a cozy Atlanta condo or a spacious home in Savannah, knowing how to advertise your rental property effectively is crucial to maximizing your investment. Georgia’s rental market is strong, but competition can be fierce. A poorly advertised property risks sitting vacant, while a well-marketed one can fill in days with a qualified tenant. This guide walks you through everything you need to know to advertise your Georgia rental property the right way. Why Rental Advertising Matte
  • NAICS Code for Real Estate Investment: Landlord's Guide
    In the world of real estate investment, small details can have significant consequences, especially when it comes to how your business is classified. If you've ever formed an LLC, applied for a loan, or filed your taxes, you've likely encountered something called a NAICS code. And if you’re a real estate investor, choosing the correct code isn’t just a formality—it’s a strategic move that can impact everything from compliance to funding eligibility. What Is a NAICS Code? The North American In
  • Tenant Liability Insurance vs Renters Insurance
    Learn the difference between tenant liability insurance vs renters insurance, what each covers, and which one renters and landlords need for peace of mind.
  • Byte-Sized Investment
    Tracy & Han used Hemlane to self-manage their rentals, save 70% of their time, and scale to over $10K/month in cash flow—without a property manager.
  • Getting Evicted? Don’t Panic — Here’s What You Can Do
    Facing eviction? Learn what to expect, understand your rights, and find legal help, rental assistance, and housing resources near you. Learn what steps you can do to prevent yourself from getting evicted.
  • When is Rent Due? Paying Rent for the Month Ahead or Behind?
    Wondering if rent is paid ahead or behind? Learn when rent is typically due, what “advance rent” means, and how to pay through platforms like Hemlane.
  • Rental Property Loans: Best Options & Investment Strategies
    Explore the best rental property loan options, financing strategies, and key factors to consider when investing in real estate for maximum profitability.
  • Hemlane: Revolutionizing Property Management for the Modern Landlord
    In a highly digitized world, property management has evolved beyond traditional methods. Hemlane stands out for its innovative features and user-friendly interface. Recognized for its efficiency in managing rental properties by Research.com, Hemlane offers landlords a comprehensive solution tailored to today’s needs. As the property management software market continues to grow, with projections reaching USD 22.64 billion by 2028 (Fortune Business Insights), Hemlane is positioned to lead the way
  • California Pet Rent Laws in 2025: A Guide for Landlords
    Learn about California pet rent laws, including deposits, fees, and tenant rights. Find out what landlords can charge and how to set clear pet policies.
  • Our Guide to Condominium Property Management Success
    Discover key responsibilities, challenges, and tips for successful condominium property management to create a well-maintained and thriving community.
Contents
  • What Is a NAICS Code?
  • Why Real Estate Investors Should Care About NAICS Codes
  • How to Choose the Right NAICS Code
  • NAICS Codes and Taxes: What to Know
  • Final Thoughts: Get It Right from the Start

NAICS Code for Real Estate Investment: Landlord's Guide

In the world of real estate investment, small details can have significant consequences, especially when it comes to how your business is classified. If you've ever formed an LLC, applied for a loan, or filed your taxes, you've likely encountered something called a NAICS code. And if you’re a real estate investor, choosing the correct code isn’t just a formality—it’s a strategic move that can impact everything from compliance to funding eligibility.

What Is a NAICS Code?

The North American Industry Classification System (NAICS) is a standardized system used by federal agencies, financial institutions, and the Internal Revenue Service (IRS) to categorize businesses by industry type. Each business activity is assigned a six-digit code that defines its primary economic activity.

Why It Matters:

ReasonImpact
Tax classificationDetermines how your business is reported to the IRS
Eligibility for grants/loansAffects qualification for SBA loans and government contracts
Risk profile for insuranceHelps insurers evaluate business risks
Business credit and fundingLenders use it to assess the type and stability of your business
Benchmarking and reportingUsed in government economic data and industry reports

Why Real Estate Investors Should Care About NAICS Codes

Your NAICS code affects:

  • Your business’s classification for tax and compliance purposes
  • Your ability to apply for financing or grants
  • How your business is perceived and evaluated by banks and insurers
  • Reporting consistency and benchmarking

Misclassifying your business (e.g., listing yourself as a broker when you’re a landlord) can result in:

  • Incorrect tax filing
  • Denied loans or insurance
  • Missed opportunities for financial aid

Most Common NAICS Codes for Real Estate Investment

NAICS CodeTitleBest For
531110Lessors of Residential Buildings and DwellingsLandlords with residential rental properties
531120Lessors of Nonresidential Buildings (except Miniwarehouses)Commercial property investors
531130Lessors of Miniwarehouses and Self-Storage UnitsSelf-storage operators
531190Lessors of Other Real Estate PropertyOwners of mobile home parks, vacant land, or specialty property
531210Offices of Real Estate Agents and BrokersReal estate agents/brokerages
531390Other Activities Related to Real EstateProperty managers and consultants

How to Choose the Right NAICS Code

Your NAICS code should reflect your primary business activity.

Real Estate Scenarios and Their NAICS Codes

Business ActivityExampleNAICS Code
Renting out residential propertyLandlord of homes or apartments531110
Leasing commercial spaceOffice or retail buildings531120
Operating self-storage unitsMini-warehouse ownership531130
Managing properties for othersProperty management company531390
Flipping housesBuying, renovating, and reselling homes236118 or 531390
Selling homesActing as an agent or broker531210
Owning mobile home parksLeasing spaces for mobile homes531190

Tips:

  • Choose the code that generates the majority of your revenue.
  • You can change your NAICS code later if your business model shifts.
  • Consult a CPA or legal expert when in doubt.

Where to Find Your NAICS Code

SourceWhy It’s Useful
IRS Form SS-4Used when you applied for your EIN
State business registrationOften includes your industry classification
Business credit reportsD&B and Experian use NAICS in risk modeling
NAICS.com Search ToolLookup tool for NAICS codes

How to Change Your NAICS Code

  1. Log in to your state’s business portal.
  2. Update your business registration.
  3. Adjust records with the IRS on your next return.
  4. Ensure it matches across all your bank, insurance, and credit reports.

Note: You don’t need special federal permission, but consistency across agencies is crucial.

NAICS Codes and Taxes: What to Know

When you file:

  • Schedule E (rental income): Use 531110 or 531120 depending on property type
  • Form 1065 (partnerships): NAICS affects categorization and deductions

Avoid using codes like:

  • 523110 (Investment Banking) – Not for real estate
  • 531210 if you’re not acting as an agent

Wrong codes = red flags for audits or incorrect deductions.

Real-Life Examples

ScenarioBest NAICS Code
You own and lease four rental homes531110
You operate a strip mall531120
You flip houses within 6 months236118 or 531390
You manage properties for other investors531390

Final Thoughts: Get It Right from the Start

Your NAICS code is more than just a formality—it’s how the government and financial institutions see your business.

Key takeaways:

  • Pick a code based on your main income-generating activity.
  • Check for accuracy across your tax, state, and business filings.
  • Update your NAICS code when your business shifts direction.
  • When in doubt, consult a CPA or a legal advisor.

By taking the time to select the correct NAICS code, you’ll set your real estate business up for fewer compliance issues and more growth opportunities.

Get the Latest in Real Estate & Property Management!

I consent to receiving news, emails, and related marketing communications. I have read and agree with the privacy policy.

Recent Articles
June Newsletter
June Newsletter
12 Best Property Management Software for 2025
12 Best Property Management Software for 2025
More Articles
Popular Articles
Risks with Venmo, Paypal, and Zelle, for Rent Collection
Risks with Venmo, Paypal, and Zelle, for Rent Collection
How to Handle Tenants with Pets and Service and Emotional Support Animals
How to Handle Tenants with Pets and Service and Emotional Support Animals
Featured Tools
Finding and Selecting the Best Tenant
For a $2,000 monthly rental: 1. You lose $1,000 if you have your rental on the market for 15 additional days. 2. You lose $1,000+ for evictions. Learn how to quickly find and select a qualified tenant while following the law.
More Tools

The Future of Property Management

We handle the work. You collect the cash.

Get Started