It`s easy to create a modified version of a lease and make it real. If you don`t have a copy to compare them, a dishonest and upset tenant could receive a judgment he doesn`t deserve. Disputes with tenants or the IRS can arise long after a lease expires. Keep your leases for at least years in case of problems with your former tenants. Keep agreements longer in case of tax problems. Everything else, like paperwork, you can just recycle it. Make sure a flexible storage system is configured to keep these documents in check. It`s also a good idea to get used to going through your documents stored on a regular basis. Try to do this if you pay bills, submit your taxes or take on a similar recurring task, so you don`t forget and your papers slip. I tried to find some tips on Google, but it`s all about apps, rental, etc. from the owner`s point of view.

While the IRS can check a tax return for up to seven years after the file, you usually no longer have to worry about being reviewed after three years. But if the IRS thinks you are undervaluing your income, it has the right to extend the three-year period by an additional three years. Cancelling a rotten debt allows the IRS to go back seven years, which is the requirement to apply for a loan or to pay off non-performing debts. Even if the tax return review period has expired, you will receive indefinitely information about your assets that you may need in the future. It is important to keep all financial statements relating to your leasing activities. When you are examined, you must provide proof of all the inferences you make. You can scan and store electronic records, cancelled cheques, credit card vouchers, rental payment records, electricity bills, bank statements, year-end credit summaries and insurance vouchers. If you own more than one rental property, you keep separate records for each unit. Property management companies should keep audit reports of accountants and legal documents indefinitely. The answer is brief: you should store the client`s documents as long as you may need to return them.

For example, you should never throw away documents related to a current client. Perhaps you have a dispute over late fees or the rules of the house that you must entail. Although the Internal Revenue Service recommends keeping tax documents for three years, you should keep the documents relating to leased property longer. In addition to tracking your income and rental expenses, you must also keep records that insure the deductions or credits you claim on your tax return.