NAICS Real Estate Investing Codes and Classifications Explained

Key Takeaways

• NAICS codes help classify real estate businesses for tax, compliance, and statistical purposes.
• The most relevant NAICS codes for real estate investors include 531110, 531120, 531210, 531312, and 531390.
• Short-term vs. long-term rentals may fall under different codes depending on services provided.
• Choosing the correct NAICS code is essential for banking, permits, and IRS reporting.
• “Passive” real estate investing may still require NAICS classification for business structure setup.
• Different codes can apply if the business includes property management or real estate development.

The real estate NAICS Code is a system of classification that is used by government organizations to understand what business activities are performed by your LLC. Generally, the NAICS (North American Industry Classification System) is used for statistics. Alaska, Arkansas, Georgia, Louisiana, Mississippi, New Hampshire, and New Mexico will request your NAICS Code. In certain states, providing your NAICS code will be optional, and in other states, providing your code will be required.

How to Find Your NAICS Code

You can find the NAICS code for your LLC by searching on the NAICS website. To find your specific code, you can search by either industry or keyword. If you wish to perform a keyword search, you should enter the first word of your business's industry in the box labeled “NAICS Keyword Search.” Then, click submit, and browse the search results until you locate the NAICS Code for your industry.

Browsing by industry is much easier. Under the search box, you will find an industries list. Click your industry, and you'll be shown the NAICS Code. If you can't find an industry that exactly matches your business, choose the closest match.

You can contact the U.S. Census Bureau by phone at 1-888-756-2427 to get help finding your LLC's NAICS Code.

What Should I List as My LLC's Purpose?

The purpose that you list for your LLC will depend on the state where you are incorporating. In many states, you can list a general purpose. For instance, you could state that the purpose of your LLC is to engage in legal business activity in your state. 

When filing in a state where listing a general purpose is not allowed, you will need to include a short description of what your LLC does in your articles of incorporation. This description does not have to be detailed, but should clearly state the purpose of your LLC. If you need to, you can change your LLC's purpose later.

It is also possible to list just a few words to describe the purpose of your LLC. If you are incorporating a pizza restaurant, you could list “pizza shop” as your purpose.

Why NAICS Codes Matter for Real Estate Investors

Choosing the right NAICS code is more than a formality—it influences how your business is treated for taxation, financing, and legal purposes. For real estate investors, NAICS codes can help:

• Determine eligibility for certain tax benefits or deductions.
• Improve the accuracy of benchmarking and market research.
• Assist banks and lenders in classifying your business for loans.
• Facilitate correct licensing and regulatory compliance.

When engaging in real estate investing, especially through an LLC, it’s crucial to select the NAICS code that best reflects your primary activity—whether that’s long-term leasing, short-term vacation rentals, or property development.

NAICS Code 531210 Offices of Real Estate Agents and Brokers

The Real Estate and Rental and Leasing Industry uses NAIC Code 531210.

This code covers businesses and agents involved in the following practices:

• Selling real estate on behalf of someone else.
• Buying real estate for other people.
• Renting real estate for another person.

Some of the industries covered by this code include:

• Real estate agencies and gents
• The auction of real estate
• Brokerages and brokers' office
• Commercial and residential agencies

A few leaders in this industry include:

• Spectrum Capital Management LLC
• Marriott Vacations Worldwide
• Tenura Home Center
• RCI LLC

NAICS Codes for Real Estate Investing and Rental Properties

Real estate investing can span multiple business activities, and different NAICS codes apply depending on the focus. Here are the most common ones investors should consider:

• 531110 – Lessors of Residential Buildings and Dwellings
  This code applies to landlords and residential real estate investors who lease apartment buildings, single-family homes, or vacation rentals on a long-term basis.
• 531120 – Lessors of Nonresidential Buildings (except Miniwarehouses)
  Used for those leasing out office buildings, retail spaces, and other commercial properties.
• 531130 – Lessors of Miniwarehouses and Self-Storage Units
  If your investment portfolio includes storage units, this is the relevant code.
• 531311 – Residential Property Managers
  Investors who actively manage residential units, including rent collection and maintenance, may fall under this category.
• 531312 – Nonresidential Property Managers
  This applies to managing commercial properties, such as strip malls or office buildings, for owners.
• 531390 – Other Activities Related to Real Estate
  Used for ancillary services like real estate consulting or fiduciary oversight.

Using the wrong NAICS code could potentially delay approvals, loans, or licenses, so accuracy matters. If your business involves multiple activities, choose the one that represents your primary revenue-generating function.

NAICS Code 53 Real Estate and Rental and Leasing

NAICS Code 53 also covers portions of the real estate industry.

Leasing and renting are two of the main purposes of the Real Estate and Rental and Leasing sector. Most of the businesses in this sector are focused on allowing others to use their real estate assets, whether through leasing or rental. Assets in this sector can be both tangible and intangible. Real estate, for instance, is a tangible asset, while trademarks would be considered an intangible asset.

Managing real estate for other people, including buying and selling, is also included in this sector because it is directly linked to this sector's main activity. Real estate and equipment lessors are some of the major components of this sector, although lessors of intangible assets such as copyrighted material are also included.

Businesses whose main purpose is leasing or renting equipment are excluded from this sector. These businesses would be covered by NAICS subsectors such as transportation or construction.

The reason these businesses are excluded from NAICS Code 53 is that clients often pay for the equipment operator's expertise in addition to the equipment itself. For example, when renting construction equipment, hiring the operator is usually a necessity.

NAICS Code 531390 Other Activities Related to Real Estate

NAICS Code 531390 covers activities related to real estate that aren't included in the other sectors. This sector includes businesses that provide real estate services, but are not lessors, agents, brokers, property managers, or appraisers.

Businesses covered by this code include:

• Real estate escrow agencies and agents
• Consultants
• Fiduciaries
• Landman services

Common Mistakes in Choosing a Real Estate NAICS Code

Incorrectly classifying your business under the NAICS system can lead to issues such as:

• Tax filing errors – Choosing the wrong code could result in IRS scrutiny.
• Ineligible benefits – You may miss out on real estate-specific deductions or credits.
• Delayed licensing – Some local or state permits are issued based on industry classification.
• Misalignment with business strategy – If you're switching from residential rentals to short-term vacation units, your NAICS code should be updated.

To avoid these issues, real estate investors should:

• Revisit their NAICS code annually.
• Match the code with their primary source of income.
• Consult an attorney or CPA when expanding services or markets.

You can find an attorney on UpCounsel to help determine the right NAICS code for your real estate business.

Real Estate Investment Types and Corresponding NAICS Codes

There is no single NAICS code that covers all real estate investing activities. Instead, the appropriate code depends on how your income is generated:

Tip: If your investing includes substantial services (like daily cleaning or concierge support), your business may fall outside of traditional rental NAICS codes and into hospitality or accommodation categories.

Frequently Asked Questions

1. What is the best NAICS code for a real estate investment company?
   The best code depends on your primary activity. For long-term residential rentals, 531110 is most common. For property management, consider 531311 or 531312.
2. Should I use a different NAICS code for short-term rentals like Airbnb?
   Yes. If you provide services such as daily cleaning, use 721310 (Rooming and Boarding Houses). Otherwise, 531110 may be sufficient for minimal-service rentals.
3. Can I have more than one NAICS code for my LLC?
   You can only choose one primary code, but you may indicate secondary activities when registering with certain agencies or for internal use.
4. How do I update my NAICS code if my business changes?
   Check with your state business registration office or the IRS. Updating your business purpose or structure may require an amended filing.
5. Is the NAICS code legally binding?
   Not strictly—but it influences taxation, licensing, and how your business is classified in government and financial systems.

If you need help finding your real estate NAICS Code, you can post your legal needs on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.