Deleting applicant's file - dilemna

[Mary Joe]

Hi All, 

I always delete the applicants files and personal info after I have denied the application.  

Would it come back and haunt me one day if someone files a complaint claiming that I unfairly reject his/her application without basis?  Since i no longer have any of the applicant's personal info with me, how am I going to defend my reasoning for rejecting the application? 

But at the same time, I do not feel comfortable holding onto the applicants personal data on my computer. 

What do most landlords do ?

Thanks