Finding the right NAICS industry classification code is important for investment property owners and managers to accurately report business activities. The NAICS Association provides a 6-digit code system to classify business establishments and determine eligibility for government programs. For real estate investors focused on leasing residential or commercial buildings, NAICS code 531110 – Lessors of Residential Buildings and Dwellings is most applicable.
NAICS code 531110 for real estate investment covers leasing and operating apartments and residential properties
The 531110 NAICS code specifically applies to establishments focused on leasing residential real estate assets they own or lease from others. This includes lessors of apartment buildings, single-family homes, townhomes, manufactured homes, and other residential dwellings. Operators who both own and manage real estate portfolios would use NAICS code 531110.
Key activities under NAICS 531110 relate to renting or leasing residential properties to tenants, maintaining buildings, collecting rents, overseeing evictions when necessary, sourcing new renters, and other standard services for operating apartments or rental homes as an investment activity.
Using the right NAICS code such as 531110 helps real estate investors comply with regulations and reporting
Properly classifying investment property businesses is important for legal, reporting, and compliance purposes. Having the wrong NAICS industry code could put companies at risk for inaccurate financial filings, issues with licensing, or being misidentified in relevant regulatory databases.
So for property owners focused on residential real estate assets, adopting NAICS code 531110 for regulatory submissions, applications, and other business documents helps support proper compliance. This includes tax reporting documents, small business loan applications with the SBA, registering a business entity and more.
In summary, NAICS code 531110 for Lessors of Residential Buildings and Dwellings is the most suitable classification for real estate investors focused on owning, operating, and leasing residential properties as a business activity.