Why Is Data Security an Important Part of HOA Management?

Data security is an increasingly important issue for HOAs in Aurora, CO, and throughout the country, as it can significantly impact the effectiveness of the organization and the privacy of its members. However, it’s a relatively new area of concern with a lot of unanswered questions and confusion surrounding how much responsibility HOAs have in protecting member information.

It’s critical for HOA boards and their community management to understand and consider data security on a regular basis to keep your HOA within legal requirements and to give members peace of mind. To ensure the security of your HOA’s member data, here are some key points to keep in mind.

State Data Privacy Laws

While there can be a lot of ambiguity surrounding the topic of HOA data security, many states have data privacy laws in place that can serve as an initial point of reference for your HOA management company. Some states may have more general privacy laws that cover all corporate entities, while other states may have laws that are specific to homeowners associations and HOA management companies.

These laws vary from state to state, and it’s important to work with an HOA management firm in your local area so you and your management team are aware of your specific state regulations and can keep your HOA in compliance. Some states may also require you to inform community members of the procedures in place for protecting their data as well as clarifying their rights and obligations regarding this matter under local law.

Accommodating Records Requests

In almost all states, your community members have the protected right to request information despite these privacy laws. You typically can’t deny the member’s request, but many of these requested documents also contain personal information that should be protected. In this case, you’ll need to achieve a balance between accommodating legal records requests and protecting member privacy.

Some states have guidelines for this specific scenario, outlining which records may be disclosed and which may not. Other states permit HOAs to redact confidential information contained within these records. However, most states don’t have clear laws or regulations in this area, so it will be up to you and your community management company to decide how to navigate these circumstances. Generally, it’s best to consult whatever data privacy laws your state does have, even if it isn’t specific to community associations.

Seeking Legal Guidance

Since data security is so closely intertwined with local laws regarding both data privacy and HOA member rights, it’s always wise to consult with legal counsel when navigating these issues. 

Legal counsel can be particularly helpful in drafting community policies regarding the disclosure of privileged details. If you live in a state that doesn’t have clear and specific laws surrounding HOA member records requests and data privacy, speak with your HOA management company and legal team to draft a community policy that can be consulted when future circumstances arise. Consulting with legal counsel can also help mitigate your liability in the case of a privacy breach or hacking.

HOA Management and Keeping Data Safe

At The Management Trust, ensuring the utmost safety and confidentiality of homeowners’ data is our top priority. With a robust and secure system in place, we diligently protect your personal information, including ARC requests, delinquency, and account details. Rest assured that only authorized personnel have access to this sensitive data, and it is never shared without your explicit consent. 

As an added layer of protection, we limit access to employee records to those directly employed by the Association, ensuring that your information remains in the hands of trusted professionals. With our HOA management company, your data is in safe hands, allowing you to focus on what truly matters – enjoying a harmonious and thriving community.

Having a team of professionals on your side — a legal team and a professional HOA management firm — can help you navigate the waters with less stress and less legal liability. If you’re looking to implement additional data security measures for your Aurora, CO, HOA, The Management Trust’s professional community management services can help you. Turn to our trusted vendors list to find a data security service that will go the extra mile, or speak to our team about recommendations for common and effective HOA data security measures. As the HOA community management experts, we have a wealth of knowledge that your board can utilize in order to optimize your community’s digital security plan. To find out more about our full range of community management services, call The Management Trust at 303-750-0994 or fill out our online contact form today.