Cybersecurity & Data Privacy for Landlords

In our digital world, Landlords must be educated on cybersecurity and data privacy. Landlords collect sensitive information from Tenants and Applicants, and they have a responsibility to protect that data. 

To help Landlords navigate this ever-changing landscape, here are some data security best practices and a guide to cybersecurity for Landlords. 

Want an easy way to ensure tenant data protection? Use trusted property management software that utilizes industry-leading data protection. Create an ezLandlordForms account today to start managing your rentals securely and professionally. 

What Is Data Security for Landlords? 

Data security for landlords refers to the systems and policies Landlords use to protect their tenants’ personal information. In the process of managing rental units, Landlords collect sensitive information – tenant screening, Lease creation, and automated rent payments all require getting personal information from Tenants. 

Landlords and property managers collect a lot of data from Tenants and Applicants: 

• Personal information and personal identification documents – including social security number, driver’s license number, and passport information 
• Financial information – including bank account details 
• Employment information – including pay stubs and tax returns 
• Background and criminal history reports – including credit reports, criminal history reports, and eviction history reports. 

Given that most Landlords collect this data digitally, they need data security systems to ensure that the data is secure and handled correctly. 

Why Landlords Need Cybersecurity Protections

Landlord responsibilities include protecting the information collected from Tenants. A data breach or cyberattack can lead to identity theft, fraud, and significant financial losses. 

Cybersecurity and tenant data protection allow property managers to: 

• Build trust with Tenants by protecting their personal data 
• Ensure regulatory and legal compliance – including compliance with the Fair Housing Act and state privacy acts, like the California Consumer Privacy Act (CCPA). 
• Prevent identity theft
• Reduce the risk of fraud 
• Establish a strong reputation in the community 
• Avoid disruptions in property management systems 

Given our current reliance on the digital collection of personal information and the ever-growing threats of cyberattacks and fraud, Landlords must make cybersecurity and data privacy part of their rental business. 

The Most Important Data Security Best Practices for Landlords 

While data security is a requirement for Landlords, it’s not something that most DIY Landlords and property managers have much experience with. And it can feel like a daunting task. 

The good news is that it doesn’t have to be. All Landlords, even those who are not tech savvy, can be proactive about tenant data protection and identity theft prevention. 

Here are some data security best practices all owners can implement: 

• Only use trusted software that utilizes robust security features 
• Only collect personal information that you need for tenant screening, lease creation, tax documents, and rent collection 
• Don’t store personal data longer than you have to 
• Limit access to personal information to employees who have to have access to do their job 
• Store data using secure cloud-based storage 
• Create data security policies, including written plans for handling data
• Ensure everyone handling data is trained in data security best practices 
• Conduct regular security reviews and audits 
• Use strong passcodes and 2-factor authentication for all accounts 

Common Cybersecurity Mistakes Landlords Make 

In addition to having good cybersecurity systems, managers need to be familiar with common cybersecurity mistakes made by Landlords. This is a way to learn from the mistakes of others and prevent them in your own rental business. 

Some of the most common mistakes that lead to data breaches are: 

• Ignoring software updates
• Clicking on suspicious links in texts or emails 
• Opening attachments in emails from unknown senders 
• Accessing secure information on unsecured, public WiFi
• Giving too many people access to your passwords or tenant data 
• Ignoring rental application security 
• Not providing secure online payments for rent collection 

What Risks Do Landlords Face if They Do Not Protect Tenant Data? 

When considering improving data security, it’s helpful for Landlords to understand the risks associated with not protecting Tenant data. Ignoring cybersecurity and data security can lead to a host of headaches, expenses, and problems for Landlords. 

Some of the biggest risks of failing to protect renters’ data are: 

• Identity theft and financial fraud 
• Cybersecurity attacks 
• Legal exposure due to failure to comply with data privacy laws and other Landlord responsibilities
• Fines and financial penalties 
• Lawsuits from renters to recover financial losses due to fraud or identity theft
• Harm to your reputation, which can make it hard to attract quality Tenants
• Loss of trust from Tenants, which can lead to turnover and increased vacancy rates 

The bottom line for property owners is that failure to protect Tenant data is bad business, which can lead to increased expenses, higher vacancy rates, poor Landlord-Tenant relationships, and legal actions. 

Security Checklist for Landlords 

When creating a security checklist, there are a few categories Landlords need to prioritize: 

• Access to data 
• Network security 
• Data handling 
• Data privacy policies 
• Review and monitoring 

With those categories in mind, here’s a checklist to help with cybersecurity for Landlords: 

• Use strong passwords and do not use the same password for all accounts and systems. Update your password regularly and use two-factor authentication whenever possible. 
• Only share passwords and tenant data with employees or third parties who must have access to the information. 
• Stay current on software updates for all devices and systems.
• Use encryption when collecting or sharing sensitive information.
• Do not send sensitive information by text or unsecured email. 
• Consistently back up all data. 
• Have written policies for collecting Tenant data, detailing what data is kept and how long the data is kept. 
• Delete renter data when you no longer need to store it. 
• Store all data on a cloud-based system that uses an encrypted server. 
• Only use property management software that utilizes the highest security standards.
• Draft a cybersecurity and data security policy that you can share with applicants and new Tenants.
• Have a plan in place for dealing with a data breach. 
• Consistently monitor all accounts for suspicious activity. 
• Conduct regular security audits of all of your devices. 

Protect Tenant Data the Easy Way? 

Data security is no longer something that Landlords can ignore, but the good news is that you don’t have to be a technology expert to ensure that your tenants’ data is protected. 

The best way to ensure you protect sensitive information? Only collect that data through secure and trusted property management systems. This means you can take advantage of your software’s advanced security features and don’t have to worry about personally collecting or storing sensitive information. 

At ezLandlordForms, we make it easy for Landlords to protect personal information: 

• All Landlords need is an applicant’s name and email address to send a screening request. No need to collect personal information like a social security number or birthday. 
• For screening reports, we’ve partnered with industry-leader TransUnion, which utilizes the latest in technology and privacy best practices to protect data.
• For rent payments, we’ve partnered with Plaid, the leader in digital finance products, to ensure that bank account information and transactions are secure. 
• Your lease agreements and forms are automatically stored with ezCloudStorage, our encrypted storage server. 

Create a Free Account to Start Using Secure Property Management Software

Want to comply with data security best practices and ensure tenant data protection? Let us handle every step of your property management system. Keeping your data secure is a priority for us, and we’ll ensure that you comply with industry best practices through every step of the rental process. 

Create a free account today to start managing your rental units like a pro.