I always scan my rental agreements and keep them digitally in a document server forever and ever. As a general rule, owners of rental properties must keep tax documents for their real estate held as investments for at least seven years. The statute of limitations for filing an appeal for an offense in Wisconsin is 6 years from the date of the offense. The safest for a lessor is to register the registration of the rents of a former tenant and, in particular, all contracts for at least 6 years from the date of termination of the contract. Imagine that you spent your life accumulating bank statements and bills on your desk. After only a decade, this stack would probably be an incredible size. There are many types of documents, most often financial — that you should keep for a certain period of time, but don`t need to keep forever. You may need to reference them monthly or weekly for a while so that they only carry an extra sheet of paper and cause chaos. Although the Internal Revenue Service recommends that tax records be kept for three years, you should keep records related to leased property for longer. In addition to tracking your income and rental expenses, you must also keep records that ensure the deductions or credits you claim on your tax return.
You also want to keep documents that allow you to protect yourself from disputes between landlords and tenants. There are many types of documents – most often financial – that you should keep for a certain period of time, but don`t need to keep forever. Maybe you need to reference them monthly or weekly for a while, then they just become another piece of paper lying around and creating a mess. I always scan my rental agreements and keep them digitally forever in a document server. The limitation period determines the maximum period of time a person has to bring legal action. Typically, California tenants with a written lease or lease have four years to file a civil action for violation of a written lease. Similarly, a landlord can bring a civil action against a former tenant and should also present the lease. If the lease is oral, the tenant has two years from the date of the offence. Claims based on a violation of the law, such as for example. B Section 1950.5 of the California Civil Code, which governs the return of the tenant`s surety, are time-barred with a limitation period of three years.
If you forget to keep your former tenant`s rental documents for at least 6 years, you could find yourself in the unenviable position of defending yourself against a complaint from a former tenant that you have no recollection of. As such, you wouldn`t have any documents you could refer to to refresh your memory, and you wouldn`t have any documents to use as evidence in court. Remember that a tenant usually only has one landlord at the same time, while you can have dozens or hundreds of tenants at the same time. It is probably certain to say that the tenant will have a better memory of you and his lease than you of them. Therefore, it is very important to keep all the documents related to the rent as long as the former tenant can sue you. .