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GDPR in Property Management: Implementing Current Requirements in Practice

The General Data Protection Regulation poses particular challenges for property managers. An overview of current requirements and their practical implementation.

Maximilian Schaper
October 22, 2025
7 min read

Introduction


Since the General Data Protection Regulation (GDPR, German: DSGVO) came into effect in May 2018, numerous court rulings and statements from supervisory authorities have given the legislative text practical substance. For property managers providing HOA management and rental management who work with sensitive owner and tenant data on a daily basis, this results in concrete requirements. This article provides an overview of the most important aspects.


Data Collection in the Letting Process


Permissible Self-Disclosures


The Conference of Independent Data Protection Supervisory Authorities (DSK) has updated its guidance on obtaining self-disclosures from prospective tenants. The requirements are strictly enforced by supervisory authorities.


The basic principle applies: only data that is necessary for the decision on concluding the contract may be collected. The necessity criterion is to be interpreted narrowly.


Timing of Data Collection


Not all data may be requested at the point of first contact. A differentiated approach is required:


Permissible at initial contact:

  • Name and contact details
  • Number of persons moving in
  • Occupation (without details)

  • Permissible only upon serious interest:

  • Proof of income
  • Credit report (SCHUFA)
  • Employer confirmation

  • Permissible only after contract conclusion:

  • Bank details for direct debit
  • Social security number (only where there is a legitimate interest)

  • Retention of Applicant Data


    Documents from rejected applicants must generally be deleted once it is certain that no tenancy will be established. A retention period of up to six months may be justified for defense against potential discrimination claims.


    Data Protection Officer


    Appointment Obligation


    Since 2019, the rule is: a Data Protection Officer must be appointed if at least 20 persons are regularly engaged in the automated processing of personal data. The previous threshold of 10 persons was raised.


    Regardless of the number of persons, the appointment obligation applies if the core activity consists of extensive processing of special categories of data.


    Responsibilities


    The Data Protection Officer monitors GDPR compliance, advises the data controllers, and serves as a point of contact for data subjects and supervisory authorities. The officer may be appointed internally or externally.


    Record of Processing Activities


    Every property management company is required to maintain a record of all processing activities. This must include, among other things:


  • Purpose of processing
  • Categories of data subjects and data
  • Recipients of data
  • Deletion periods
  • Technical and organizational measures

  • The record must be made available to the supervisory authority upon request.


    Information Obligations


    Data subjects -- owners, tenants, prospective tenants -- must be informed about the processing of their data. The information must be precise, transparent, and comprehensible. It includes, among other things:


  • Identity of the data controller
  • Purpose and legal basis of processing
  • Storage duration
  • Data subject rights

  • The information is typically provided through privacy notices that are handed over or made accessible at the time of data collection.


    Data Processing Agreements


    Where personal data is processed by service providers -- such as IT service providers or external billing companies -- a data processing agreement is required. This governs in particular:


  • Subject matter and duration of processing
  • Nature and purpose of processing
  • Right of instruction of the controller
  • Technical and organizational measures
  • Return or deletion of data upon termination of the contract

  • Current Developments: AI in Property Management


    The increasing use of AI applications raises new data protection questions. When using AI tools for text processing, translation, or analysis, the following must be examined:


  • Is personal data being transmitted to the provider?
  • Where is the data processed (EU or third country)?
  • Does a data processing relationship exist?
  • Is a Data Protection Impact Assessment required?

  • Conclusion


    The GDPR poses diverse requirements for property managers. Careful implementation is not only legally mandated but also builds trust with owners and tenants. Regular review and adaptation of processes are essential given the ongoing legal developments.


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    *This article is for general information purposes and does not constitute individual legal advice.*

    GDPRData ProtectionProperty ManagementTenant DataCompliance
    Maximilian Schaper

    Maximilian Schaper

    Geschäftsführer at Verto GmbH

    Maximilian Schaper ist Geschäftsführer der Verto GmbH und verfügt über mehrjährige Erfahrung in der digitalen Transformation der Immobilienverwaltung. Er setzt sich für transparente, effiziente und rechtssichere Verwaltungsprozesse ein.

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