How long do you keep your rental records?

Question

I finally broke down and attended to some filing.  I have several file cabinets, however; since I have been a landlord for ~15 years I have a lot of paper and the cabinets are full to bulging.  I have thinned these records before and know that it is wise to keep records of improvements to the properties, for tax purposes, indefinitely.  Is it better to keep leases and applications indefinitely in case I am shopped by HUD for equal housing investigations?  How about payment records, notices to quit or eviction records? How long do you keep your rental records?

Account Closed · Answer

Records to Keep and How Long

Two Years:Bank Reconciliation ReportsDeposit SlipsCorrespondence with customers and vendorsThree Years:Bank StatementsEmployment Applications or Tenant ApplicationsPetty Cash VouchersSales Commission ReportsTen Years:Accident Reports/ClaimsCanceled ChecksChart of AccountsContracts, Mortgages, Notes and Lease Agreements ExpiredGarnishmentsInventories of Products, Materials and SuppliesInvoicesLoan Statements and SchedulesPayroll Records and SummariesPurchase OrdersTime Books/CardsVouchers for payments to vendors, employees, etc., includes allowances and reimbursement of employees and owners for travel and entertainmentWithholding Tax StatementsPermanentlyAudit ReportsCash BooksCanceled checks for important payments like taxes, purchases of property, special contracts, etc., and should be filed with the papers pertaining to the underlying transaction.Contracts, notes and Lease Agreements still in effectDeeds, Mortgages and bill of SaleDepreciation SchedulesGeneral, Private Ledgers, Year End Trial BalanceInsurance Records, Current Accident Reports, Claims Policies, Etc.JournalsLegal CorrespondencePatents and related papersProperty Appraisals by Outside appraisersProperty Records, including costs, depreciation reserves, year-end trial balances, depreciation schedules, blueprints and plansRetirement and pension recordsTax returns and worksheets, revenue reports, and other documents relating to determination of income tax liability.Trademark registrations and copyrightsYear-End Financial Statements

Two Years:

Bank Reconciliation Reports

Deposit Slips

Correspondence with customers and vendors

Three Years:

Bank Statements

Employment Applications or Tenant Applications

Petty Cash Vouchers

Sales Commission Reports

Ten Years:

Accident Reports/Claims

Canceled Checks

Chart of Accounts

Contracts, Mortgages, Notes and Lease Agreements Expired

Garnishments

Inventories of Products, Materials and Supplies

Invoices

Loan Statements and Schedules

Payroll Records and Summaries

Purchase Orders

Time Books/Cards

Vouchers for payments to vendors, employees, etc., includes allowances and reimbursement of employees and owners for travel and entertainment

Withholding Tax Statements

Permanently

Audit Reports

Cash Books

Canceled checks for important payments like taxes, purchases of property, special contracts, etc., and should be filed with the papers pertaining to the underlying transaction.

Contracts, notes and Lease Agreements still in effect

Deeds, Mortgages and bill of Sale

Depreciation Schedules

General, Private Ledgers, Year End Trial Balance

Insurance Records, Current Accident Reports, Claims Policies, Etc.

Journals

Legal Correspondence

Patents and related papers

Property Appraisals by Outside appraisers

Property Records, including costs, depreciation reserves, year-end trial balances, depreciation schedules, blueprints and plans

Retirement and pension records

Tax returns and worksheets, revenue reports, and other documents relating to determination of income tax liability.

Trademark registrations and copyrights

Year-End Financial Statements

Account Closed · Answer

If memory serves you have to keep application, denials etc from credit bureaus several years. They can audit you on your taxes back 3 years I believe.  There's enough variation that I keep mine 7 years.  But I agree with @Dawn Anastasi though.  I've been scanning everything into the computer and then throwing away the paper.  I bought a Fujitsu ScanSnap scanner, and then scan into Evernote.  It works well.  You can tag your documents so that they are searchable.  Beats the filing cabinet.  BTW, I scan all my receipts and other tax related documents.  It's approved by the IRS.

Account Closed · Answer

I keep everything for 3 years. I scan everything. I have no paper records at all to deal with.

@Jeff Rabinowitz Instead of going back and scanning all of your old records, you could just start scanning new ones as they come in.

Steve Babiak · Answer

@Dawn Anastasi - two years is not long enough for tenant application records; 5 years is the minimum. See link:

http://fcradefense.wordpress.com/2011/08/26/the-fc...

Elizabeth Colegrove · Answer

Honestly I would be willing to temp them indefinitely if you have the storage. Personally I seem to always need business files even after the "time limit"

Dawn Anastasi · Answer

I attended a seminar held by an attorney and he said the statute of limitations on discrimination cases for tenant applicants is 2 years so all applications should be kept for that long.  I did ask if scanning and keeping them digitally would be okay and he said yes.

Jeff Rabinowitz · Answer

@Michelle L  , a large portion of my records arrive as hard copies and I have to store them that way.  This includes deeds, sale documents, loan docs.  I would be reluctant to scan leases and discard the originals because I would be throwing away the lessee's signatures.  I could see some legal aid hotshot making an issue of that.  The same is true for court records--I want the signed copies.  I don't see scanning as saving much time but rather as another record keeping job which I don't need.  I can't imagine what would happen if a computer crashed with these records and it hadn't been backed up recently.  I am not so good at keeping my back ups current.

Jeff Rabinowitz · Answer

I'm not going to take on the task of scanning the contents of 4 file drawers but I appreciate the guidance.  Thank you.  I will jettison some of my old tenant records.

How long do you keep your rental records?

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Records to Keep and How Long

Two Years:

Ten Years: