SECTOR RESIDENTIAL PROPERTY MANAGEMENT
Ever-increasing value of privacy Jo Rae, Head of Property Management, REINZ
In November 2021, the Office of the Privacy Commissioner released information relating to their compliance strategy for the Rental Sector so tenants can be confident their personal information is being collected, protected, used, disclosed, and disposed of appropriately across the residential tenancy market.
It doesn’t matter whether you’re an individual renting out a single property or a property manager in a company that looks after hundreds of properties — you must collect and handle personal information responsibly and in accordance with the Privacy Act. With current rental housing shortages, there is a feeling that property managers hold the balance of power. Some tenants believe they could be disadvantaged if they don’t provide as much information as the property manager asks for — even if they don’t feel comfortable doing so. Property managers too, are under increasing pressure from tenants who are tired and stressed over losing out on properties.
The risks of handling personal information Time has caught up with us. Historical paper-based systems that are insufficiently stored provide an unsettling opportunity for fraudsters to steal another person’s identity. The personal information collected on a standard tenancy application is enough for someone to open a bank account, get a credit card, or take out a loan. Jackie Adams, Compliance and Enforcement Manager at the Office of Privacy Commissioner, says it is still common for some landlords and property managers to throw older or unsuccessful tenancy applications into the general rubbish bin. Not a thought is given to where they may end up or in whose hands. Jackie states that the request of information, such as the name and details of your vet or who your car finance is with, is irrelevant
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The Real Estate Institute of New Zealand
to the tenancy application process, and tenants are not required to provide this level of personal information.
Making systems secure Disconcertingly, the dark web is yet another platform where someone’s identity can be sold for as little as $30 to $100. It’s a lucrative business, which has seen a 300% increase in online fraud and cyber security over the past few years. Unfortunately, online fraud and/or identity theft are problems many of us will experience at a point in our lives. Although paperwork is high-risk, so is the security of your software systems. Passwords with only seven characters can be hacked in only a second — complex passwords are crucial. Property managers must consider the amount of personal information they collect. The more they collect, the higher the risk and the more responsibility they have for keeping it secure. Having an open rental home and collecting 30 rental applications from 30 potential tenants at one time is not justified considering only one group or person from those applicants will be chosen. Narrowing down your applications to a preferred applicant status of two or three tenants is a much safer system. It also means you are not undertaking unnecessary credit checks on multiple potential tenants who may not be selected. Ask yourself: would you be happy giving your personal identifiable data to your business? Is your data secure, and would you feel you had control over it?
