As a landlord, tenants trust you to keep their home safe and well-maintained. But they’re also trusting you with their personal information. Rental applicants are typically required to share private data like their date of birth, phone number, previous addresses, employment status, and social security number. Once tenants sign a rental agreement, they may need to share their bank account or credit card information to set up automatic rental payments.
To establish a trusting landlord-tenant relationship, your tenants need to feel confident in how you’re handling their data. In addition, laws like the Driver’s Privacy Protection Act of 1994, the Health Portability and Accountability Act, the Children’s Online Privacy Protection Act, and various state laws and regulations are in place to protect private information.
Here are 4 steps to help landlords stay compliant and protect their tenants from identity theft.
Secure data storage. If you keep paper files containing personal information, store them in a locked cabinet and limit who can access the key. Use strong passwords and 2-step authentication for digital files to keep out prying eyes. Stay vigilant against phishing scams and other forms of cyber-attacks to keep your computer and phone safe from attempts to steal your data.
Limit collection, access, and duration. Rental applications and other forms should only ask for the information you need to screen potential tenants and maintain ongoing communication. If you have no reason to keep something like your tenants’ social security numbers on file, then don’t. Think carefully about which of your employees and contractors need access to secure information. When a tenant vacates your property, and their info is no longer needed, immediately delete or shred their information.
Maintain open, honest communication. As you build trust with potential and current tenants, never hesitate to share why you need to collect certain personal information and how you will store and protect it. Get a renter’s consent before any action that might feel like an invasion of their privacy, such as a background check or taking pictures of their unit. Tenants should know the location of any surveillance cameras and when the footage might be viewed or used.
Be prepared. In the case of a data breach, have a plan in place. Establish connections with legal and cybersecurity professionals before an incident. It will increase your ability to limit the damage if there is a breach. Inform tenants as quickly as possible so they can monitor improper use of their private information. Consider including a privacy policy in your lease agreement or welcome packet so tenants know right from the start how you intend to use and protect their sensitive data.
Amid a landlord’s busy schedule, it’s tempting to place data security at the bottom of an overloaded to-do list. However, ensuring the safety of your tenants’ information is crucial to avoiding the hassle and expense of breaches or complaints. It will also help you build a respectful, trusting relationship with your tenants.
About Rentals America
Rentals America provides full-service property management for residential rental properties. Our team is completely dedicated to property management, and we’re here to help landlords navigate the rental market.
