How long should I keep records for? The answer is: It depends. Different types of records should be kept for different periods of time. As it relates specifically to property management, you will want to keep the following information for these specific periods of time:
One Year
- Employee applications
- Purchase orders
- Meeting minutes
Three Years
- Banking records
- Expired insurance policies
- Correspondence (with clients, tenants, vendors, etc.)
- Internal audits
Seven Years
- Accident reports/claims
- Accounts payable ledgers
- Accounts receivable ledgers
- Bank statements
- Expired contracts and leases
- Employee records (seven years post-termination, not beginning of employment)
- Expense reports
- General journals
- Invoices (both incoming and outgoing)
- Payroll records
- Purchase orders
Permanently
- Articles of incorporation
- External audits
- Canceled checks for property purchases and taxes
- Deeds and mortgages
- Year-end financial statements
- General ledger balances
- Licenses and permits
- Property appraisals
- Property records (costs, blueprints, etc.)
- Tax returns
Many of the items included in this list can be kept electronically. Remember, though, computers crash and are replaced over time and records can go along with them. Particularly when it comes to records that should be kept for longer periods or permanently, make sure that they are electronically preserved either on an external drive or on a secure server.
