Landlord Paperwork
Which Records to Keep and For How Long
Investment property owners must keep meticulous records. If you’re a landlord with less than stellar skills in this area, consider hiring a property management company to help.
Of course, hiring outsiders cuts into your profit and cash flow. Whether you choose to keep paper files or a specialized property management software system, it’s not difficult to set up and maintain adequate records retention.
Visit an office supply store and you’ll find a wide variety of new tools for records keeping and file organization. pick up plenty of file folders and plan on keeping them in locking, fireproof file cabinets.
You’ll want to keep records of each property purchase. The original contract, closing documents, tax records, inspections, appraisals, insurance and loan documents are all required. Store them separately from rental paperwork for each property you own, for as long as you own the property.
Tenant paperwork includes applications; background screening documents, including credit checks; legal notices; maintenance records and correspondence. Even the most insignificant-seeming records can be very handy in case of litigation or dispute. Store tenant records for three to five years after the tenant moves out, but keep all legal paperwork indefinitely. This includes everything related to injury reports, evictions, and litigation.
Rental income and associated expenses are the final set of landlord paperwork. These can be easily tracked, either with business accounting software, property management software, or on spreadsheets. Software packages are less pricey these days, and their reports and templates make them indispensible to many landlords.