Safeguarding Your Community: HOA Data Security

Like businesses, homeowner’s associations have to rethink the way they operate to stay in sync with a tech-driven world. Why? Because residents of HOA communities now expect certain capabilities like automated payments and online portals. To accommodate this, integrating HOA management software is a smart step, but you have to ensure your residents’ data stays safe. 

When it comes to software, there’s plenty of outdated information about what’s safe and what’s not. This can make deciding on a platform tough for an HOA board, especially when considering tools for dues management. Protecting the community’s financial and personal data at all times is imperative. 

There are also laws and regulations around data privacy every homeowner’s association must adhere to. Failing to do so could result in strict fines. 

But not to worry. Choosing self managed HOA software that ticks all the data security checkboxes isn’t as hard as it sounds. Let’s go over what to look for. 

The Right Encryption Standards

Encryption is the foundation of data security. It’s the process of encoding ordinary data into a format that makes it impossible to read by unauthorized parties. Having data encryption in place is one of your first lines of defense against a cyberattack. 

When considering self managed HOA software, you don’t need to know the ins and outs of encryption. However, there are a few standards that need to be in place. 

Advanced Encryption Standard (AES)

Common in forms of technology everywhere, AES is an algorithm that makes data unreadable unless a user has access. It was established by the US National Institute of Standards and Technology in 2001 and is now the standard for all software worldwide. 

Software with AES encryption keeps sensitive data secure, even if it’s stolen by cybercriminals. With this in place, your HOA board enjoys the peace of mind that bank details, emails, and community data are safe. Software with 256-bit AES provides the highest level of protection. 

Transport Layer Security (TLS) 

In addition to data, your HOA’s communications need security. TLS achieves this by encrypting information being communicated between a server and a web browser. 

With TLS in place, you avoid data breaches, something very important if your association plans on offering a resident portal. It can also protect communications across email, voice-over IP, or message boards.  

Staying Compliant 

With regard to data security compliance, federal laws don’t currently target homeowner’s associations. However, your HOA board must adhere to general data protection regulations and state laws when handling residents’ information. This means the self managed HOA software you use needs to adhere to it too. 

Data security compliance measures are often in place to ensure safety when processing financial information. This is a big concern for HOAs that accept dues payments and other fees via debit or credit cards. 

When considering HOA software that streamlines financial management, the following compliance measures are great to have: 

Payment Card Industry (PCI) Compliance

If you’re handling card transactions via software, PCI is a must. It refers to a set of protection standards that keep cardholder data safe. 

PCI compliance involves a multi-level approach to protection that includes firewalls, anti-virus programs, access control, encryption, and more. You don’t have to understand all these elements – you just need software that has them. 

Access Controls and Authentication

If you integrate self managed HOA software to help streamline your HOA’s processes, every board member needs to use it. But each member may not need access to everything. 

For example, a volunteer board member who’s helping out with third-party vendor management probably doesn’t need access to the HOA’s yearly budget or resident payment information. They only need access to the information that will help them do their job effectively. 

Software that allows you to control user permissions adds an extra layer of data protection. You can give access to board members based on their role so only the most qualified people can view sensitive data. This ensures financial or personal information doesn’t fall into the wrong hands. 

To support access control, software should come with built-in multi-factor authentication (MFA). This security measure requires users to input two or more factors, like a password and code sent to their phone or email. 

Software with MFA in place makes it difficult for a user with limited permissions to gain access to information they’re not supposed to see. It’s also yet another layer of protection from cyber criminals trying to steal sensitive information.   

Data Backup and Recovery 

Data loss is a common concern, especially when transitioning to new tech tools. The good news is that most software today performs regular backups to ensure loss prevention. 

Data loss could occur due to user error, hardware failure, or power outages. It may also happen if your system comes under attack and files get corrupted or stolen. 

Data recovery should also be in place in your self managed HOA software. In the event that your HOA data goes missing, the software will restore it. 

Smart Vendor Security Practices 

Up to this point, the data security measures we’ve highlighted focus on protecting the HOA and its residents. But the software you use should also protect you when doing business with third-party vendors. 

When your HOA pays out vendors for work, it’s crucial that your bank details remain confidential. Encryption will help ensure the association’s bank details stay safe during transfers. 

The software you use should also have data security protocols in place to protect sensitive data like invoices, contracts, and community information that should remain private. If your HOA needs to use a vendor’s online portal, make sure they’re also using software that protects your data. 

PayHOA’s Comprehensive Security Measures 

At PayHOA, we designed our software specifically with HOAs in mind – and we took data security into account. We understand exactly how homeowners associations operate and have taken the time to ensure boards and residents are protected.

Our data security features include: 

• Military-grade 256-bit data encryption 
• Data backups every four hours 
• Two-step verification 
• Multi-level user permissions 
• Payment processing by Stripe, a trusted leader in payment security 
• PCI compliance 

We also offer unlimited customer support for free, which means no headaches during the onboarding process. You’ll enjoy a dedicated account manager, access to a comprehensive help center, and video tutorials. Plus, you can communicate with our support team via chat, email, phone, or virtual meetings. It’s our goal to make PayHOA integration and usability as easy as possible. 

Keep Your Data Secure With Our Self Managed HOA Software

Bringing your HOA board into the modern age may seem like a big step. But with the right self managed HOA software in place, you can streamline your operation and get the peace of mind your data is protected. 

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PayHOA offers an HOA management software solution for HOAs of any size or managerial priorities. To find out if PayHOA fits all your HOA management needs, try our software free for 30 days.