The statute of limitations determines the maximum time a person has to take legal action. In general, California tenants with a written lease have four years to sue for breach of a written lease. Similarly, a landlord can bring a civil action against a former tenant and must also provide the tenancy agreement. If the tenancy agreement is oral, the tenant has two years from the date of the breach. Claims based on a violation of the law, such as. B of the California Civil Code Section 1950.5, which governs the return of the tenant`s deposit, have a three-year statute of limitations. 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. If the documents are still “active” — you need to save them as a reference — place them in your theme storage system. They only shred when they are no longer in use. How long should I hold a lease after moving, receiving a deposit, etc.? Keep the old insurance policies for three years, even if you`re no longer dealing with that insurer.
For small repairs and capital improvements you make on a rental unit, keep the supporting documents until you sell the property. File documents for major purchases, z.B. Devices delivered by you, with your checklist for the insurance inventory. 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. In addition to the old leases, you should keep anything that documents the relationship between the landlord and the tenant or supports the items you declare on your tax return. If the IRS verifies your tax return and you cannot provide the correct confirmation documents, you may be liable for additional taxes and penalties. For example, the documents they must keep are rental providers, tenant information packages or other documents you gave to the tenant when moving in, rental application, credit reports, check-lists for entry and exit inspections, rent vouchers and repair bills.