In my twenty years in real estate technology, I’ve watched the industry shift through waves of advancing technology, regulatory change, evolving tenant expectations and new market pressures. Today, one challenge stands out from the rest for tech leaders in our industry: navigating the increasingly complex battle between privacy and security. 

The number of fraudsters and scammers targeting property management software to exploit unsuspecting landlords and tenants is multiplying every year. To combat this, software platforms—including my own—are requiring more extensive verification of customer information than ever before. Sometimes these verification processes can exceed what even financial institutions might ask for. While necessary, these measures create friction and a clear barrier to entry at the exact moment we’re working to protect the people using our platforms.

At the same time, advancing security and surveillance capabilities—from smart locks to property cameras to AI-powered monitoring systems—must be carefully balanced against rising tenant expectations for privacy and transparency. What used to be a simple operational decision is now a major trust decision that can impact your bottom line.  

Navigating this fine line—protecting properties and clients, reducing risk without compromising trust, and running secure, reliable software platforms—will remain one of the industry’s biggest challenges as we move into the new year. 

Rising Threats

In the last few years, fraud, scams and cyberattacks targeting the rental industry have exploded, putting landlords, property managers, tenants and PropTech providers in the crossfire. A 2024 industry survey found that 90% of renters worry about falling victim to scams, and 92% believe landlords and property management companies should adopt better technology to prevent fraudulent rental listings.

Rental scams are becoming increasingly sophisticated, and with the recent popularity of AI technology, fraudulent listings are today’s most common scam. The National Multifamily Housing Council reports that 1 in 3 renters encountered a fraudulent listing during their housing search in 2025. In my own hometown—a small, rural city in Southern Oregon—I recently saw a legitimate two-bedroom rental advertised for $1,400, which is in line with local market rates. Hours later, the same property appeared in a duplicate listing, using the same photos and description, but priced at just $800. Vulnerable renters who think they’ve found a great deal can fall victim by handing over deposits or personal information. 

Identity theft and document fraud are also on the rise. Fraudulent rental applications have doubled in recent years, and in one survey, more than 93% of multifamily landlords reported experiencing fraud in the form of falsified pay stubs, forged bank statements or misrepresented employment history.

Too many times—especially before two-factor authentication became common—I’ve seen property managers reuse the same username and password for every service, from personal email to online banking to our software platform. When they do this, they make themselves vulnerable to scammers and hackers, because if any one service is compromised, bad actors will have access to everything. The moral of the story: use unique passwords for every account and enable multi-factor authentication wherever provided.

PropTech platforms are now under pressure to close security gaps, but tightening verification and fraud detection can slow down onboarding and frustrate legitimate users. A security incident like a breach, phishing attack, or identity fraud can severely damage trust. 

How Landlords and Property Managers Can Strike the Right Balance

The answer isn’t choosing privacy or security—it’s balancing the two. Intentionally designing systems that respect both—protecting properties, tenants and software users without creating unnecessary friction or eroding trust—is key. 

A common example of this balance is tenant screening. Some applicants are extremely cautious about sharing sensitive personal information, like their Social Security Number or credit history, even with reputable property management companies or secure screening services. When these situations arise, landlords are left with little to no insight into an applicant’s rental or financial history, making it difficult to make an informed decision. The challenge lies in finding a middle ground between protecting tenants’ privacy while responsibly using personal information to ensure reliable tenancy.

Here’s my advice for fellow landlords, property managers and software providers navigating this growing tension:

  • Make security seamless: Verification and fraud detection should feel built-in, not bolted on. Implement verification processes that integrate smoothly into the user experience, and educate users through clear prompts and alerts instead of walls of technical jargon. Use AI, automation and fraud detection tools to flag suspicious activity without making tenants jump through endless hoops.
  • Collect only what’s necessary: More data does not always equal more protection. Limit data collection to what’s essential for verification, safety and compliance and avoid gathering information “just in case”. Transparent policies about why data is collected and how its protected will help build trust between landlords and tenants. Avoid retaining any sensitive data any longer than absolutely necessary. 
  • Use a layered security approach: Combine multiple security measures—identity verification, two-factor authentication, encrypted communication, monitoring systems—to protect against the widest variety of threats. A layered approach will make breaches less likely while minimizing impact on legitimate users, and multiple layers protect both user accounts and property-level smart devices.
  • Monitor and adapt: Threats evolve quickly, and your processes should too. Stay ahead by regularly (I recommend at least quarterly) reviewing verification workflows, monitoring emerging fraud tactics and updating security protocols accordingly. Listen to feedback from tenants to identify opportunities to improve both privacy and protection protocols.

A thoughtful, proactive approach to security and privacy can be a differentiator for your business in an increasingly digital rental landscape. Tenants and property owners are increasingly choosing platforms based on trust—and trust comes from transparency, balance and a commitment to protecting people as much as properties. 

Security and privacy aren’t mutually exclusive. Done well, they reinforce each other—and they will continue to shape the future of real estate technology.