GDPR May 2018 – what is it and will I be affected?

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Data protection is something that most landlords should be aware of but it may not be something that many landlords have thought too much about. That will change this year. This is because in May 2018, GDPR is being introduced and it will have implications for the housing sector. This is because there are new responsibilities with respect to how personal data is handled and processed, and this means landlords and letting agents will probably need to make some changes.

One of the major factors of GDPR is consent. It is no longer sufficient for letting agents and landlords to utilise blanket clauses in order to obtain consent when they collect personal data. Also, it used to be the case that landlords were advised to offer a privacy notice to tenants, with this notice explaining what the landlord would do with the personal data. This is no longer deemed sufficient.

Under GDPR, the landlord will have to:
• Explain why the data is being collected
• Detail how the data will be used
• Obtain consent and ensure that this is consent is offered when a person is fully informed and that they are pleased to give their consent
Given that GDPR is looking for “clear, affirmative action”, landlords should be looking to obtain a signature from the tenant to indicate that consent has been granted.

Data shared with a third party also falls under the GDPR remit

If the collected data is to be passed on to a third party, there is a need for additional consent and landlords should be aware that consent can be withdrawn at any point.

Landlords and letting agents are advised to review the personal data they obtain from tenants and how they go about gaining consent. There is also a need for landlords to manage and store data securely, with the transmission of data also being carried out in a secure manner. If the landlord or letting agent holds information at the moment that doesn’t have consent that is applicable under GDPR, it makes sense for this consent to be updated.

Ready for GDPR?
It may be that the arrangements that landlords currently hold with third parties, such as suppliers or contractors, could involve the sharing of personal data. If so, these will need to be reviewed as well, with care being given to ensure that the agreement is satisfactory under new rules.

There are potentially high penalties under GDPR

Under the new ruling, there are higher penalties for data breaches, which is likely to be the issue that impacts on landlords the most. The maximum fine that can be handed out runs up to 4% of annual turnover. For major companies, the fact that the fine can reach a level of €20 million should be a concern.

Hopefully landlords will have a proper system in place for obtaining consent and managing data, which means that the introduction of GDPR may not be too difficult. However, many small firms may need to review their circumstances and make the necessary changes before May of 2018. It is vital that all landlords acknowledge the introduction of GDPR and take relevant steps to ensure they are fully compliant.

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