Security Compliance Tips for Property Management Companies

Property managers take care of residential or commercial properties on behalf of the investment owners. They schedule maintenance, source and support tenants, respond to service requests, as well as maintain a positive cash flow for each property. The business of property management, once entirely manual, had now smoothly transitioned into the digital world. Document management, maintenance, inspection apps, background check services, and tenant portals make it possible to handle almost all the paperwork tasks of property management with data instead of actual paper. However, this introduces a new concern: Security compliance.

As with any business that handles private data such as a tenant’s background information and home address, the law requires property managers to maintain a robust level of cybersecurity to protect that data.

Understanding Security Compliance

Security compliance relates to data security. It represents a professional and legal obligation to protect certain sensitive data whenever a business handles or stores it. If you accept online payments through a payment processor, you are held to PCI-DSS compliance by the payment card industry. If you rent to (or work with) EU citizens, their personal data handling must be compliant with the GDPR. Lastly, if you handle the data of California residents, your data security must comply with the CCPA.

Business partners and clients may also require you to adhere to certain industry standards of security compliance, such as ISO or NIST. You will also need to adhere to FTC standards regarding the accurate presentation of your security-compliant status.

Common Security Challenges

Not in the tech or financial sector, cybersecurity is not an industry where it has been strongly stressed in the past. This has led property managers, in many cases, to feel underprepared for the new landscape of security compliance. 

Common security challenges property managers face include building a robust security strategy, achieving end-to-end security across the many apps and tools used in property management, and classifying sensitive data inside documents and communications that they must protect according to regulations.

Much of the data property managers handle can be classified as sensitive and personal, requiring advanced security measures to protect. Therefore, a fully comprehensive security infrastructure and procedure is necessary to achieve security compliance.

Key Security Compliance Regulations

While property management companies may be subject to several different data security regulations, they often share a few core standards when it comes to the procedures and level of security required for compliance.

Data Security Obligations

• Protect “Personal and Sensitive” information.
  • Full personal names
  • Home addresses
  • Social security numbers
  • Background check results
  • Payment information
  • Medical information
  • Family information
  • Other uniquely personal data
• Alert persons that their data is being handled or stored
• Give persons the option to have their data deleted when no longer relevant
• Give persons the option to opt out of having their data handled or stored
• Alert persons if their data is compromised or stolen
• Delete personal data after it is unneeded for 3-10 years

Standard Security Procedures

• Maintain secure firewalls
• Prevent malware from invading or lurking on your network
• Use secure software and platforms
• Prevent exposure of data in storage and use
• Prevent exposure of data in transit between apps and devices
• Use encryption to protect data handled and stored by your company
• Effectively protect and secure user accounts
• Have a data breach recovery plan and respond swiftly to breaches

Security Compliance Tips

Fortunately, data security has become a standard implementation for modern businesses. The same methods applied in other industries work equally well for property management companies. Here are a few practical tips for property managers to ensure security compliance.

1. Data Protection Measures

First, build a robust data security infrastructure. This will include all the standard data protection measures such as firewalls, virus scanning, and account security. You will also need to coordinate encryption and full-stack security so that private data can be safely handled by employees without the risk of exposing it to the outside world or malicious parties.

2. Access Control

Access control includes both account security and careful account-based access to certain information. By default, each employee, client, service, and tenant accountholder should only have access to the documents and tools that are relevant to their role. For example, one investor client should not be able to access the documents of properties outside their own. One property manager should not be able to access property and tenant data outside the properties they manage, and so on.

This not only prevents internal problems but also creates an ‘airlock’ that limits the damage a hacker can do if they steal an account.

3. Regular Auditing and Monitoring

Security auditing and network monitoring are the methods used to ensure that your security structure remains robust and that malware or hacker activity does not slip in while your team is occupied with the rigors of an active property management business. By scheduling security audits and implementing automated monitoring, you can maintain security as part of normal business operations.

4. Employee Training

Employee training is also a critical element of data security. This is because hackers often try to route around your firewalls and encryption through “social hacking” or “phishing”. These scams can trick employees into revealing or sharing private data, transferring money, or clicking an infected link which can let malware into your network. Training employees to keep up their defenses and recognize scams is essential and very useful.

5. Incident Response Plan

Lastly, have a plan (several plans) for how your team will respond if a data breach occurs. Hacking is prevalent and breaches happen even to the most careful and well-defended businesses. Having a rapid response plan can minimize damage as well as help protect the important sensitive data that your property management business guards.

Benefits of Security Compliance

Security compliance isn’t just required, it also provides several profound benefits for property managers.

• Investor clients will more confidently entrust their data and holdings to your management services
• Tenants will feel safer applying for a tenancy as well as providing personal information
• Protecting your company’s reputation as a safe and trustworthy property management brand
• Protecting all parties from the dangers of identity theft and fraud
• A more robust and efficient tech stack to complete your business operations

Conclusion

Security compliance is a key element in the success of modern businesses. It is both necessary and beneficial as industries transition completely to digital data management. As a property manager or a property management agency, you have the responsibility of protecting a great deal of personal data. ABL Computers can help you secure your complete tech stack, including identifying, prioritizing, and protecting the sensitive data you handle regularly.

Contact us to consult on your property management security compliance needs.