When leasing commercial property to a tenant, large amounts of information are collected, used and disclosed, which makes sense. As a landlord, it is important for you to know who your tenants are so that you can enter into a relationship with the right business while also ensuring your property is protected.
From a tenant perspective, however, there is an expectation for privacy when it comes to their business and their work space.
That is where the Personal Information Protection and Electronic Documents Act, better known as PIPEDA, comes in.
PIPEDA outlines how Canadian businesses must use and manage personal information while conducting business activities. In terms of the landlord/tenant connection, PIPEDA helps mediate the information sharing relationship. It allows landlords to collect the information they need to make a smart decision, while ensuring that the tenant’s privacy is maintained.
Under PIPEDA, you as a landlord or property manager are required to:
Recently, a revision was made to PIPEDA that requires all organizations to report data breaches posing “real risk of significant harm”. These breaches must be reported to both the affected individual, i.e. your tenant, and the Office of the Privacy Commissioner.
In addition, you must also maintain records of the breach for a two full years. Failure to do so could result in fines of up to $100,000 per affected individual.
While safeguarding information about your tenant was always a requirement of PIPEDA, under Principle 7, it is now more important than ever for landlords to ensure their tenants’ and prospective tenants’ data is protected to avoid having to report breaches, which was previously voluntary.
This may mean using a locked cabinet, restricting access to the office, equipping your business with security systems, strengthening passwords and firewalls, training staff on the handling and storing of personal information, enhancing internal policies and introducing security clearances.
To help ensure that you meet the requirements of PIPEDA when investigating your prospective tenants and reviewing your renewal tenants, here are 15 tips for commercial landlords.
At Quality Credit Reporting, our screening services are fully compliant with PIPEDA as well as Provincial Human Rights and Credit Reporting Legislation. Informed consent is obtained prior to starting any investigation on a prospective tenant and all of our commercial tenant credit applications, completed by the tenant, include a clause which authorizes us to gather subsequent credit data through the duration of the lease and upon renewal.
For more information on PIPEDA and your rights as a landlord, or to obtain a credit report that meets all legislative requirements, contact us today.