OAIC privacy compliance reform: Practical implications and strategies for real estate agencies

For agencies that routinely collect driver’s licences, passports, payslips and bank details, this is not a minor procedural review. It is a test of whether everyday practices stand up to modern privacy law. Non-compliance penalties can reach up to $66,000, but the financial penalty is only part of the equation. The reputational damage following a privacy breach can be far more severe.

Why open homes have become compliance flashpoints

At an open home, collecting personal information feels harmless. Prospective tenants or buyers sign in. An agent may request identification. In competitive rental markets, applicants often provide detailed documentation upfront to strengthen their case.

But privacy law does not distinguish between “routine” and “sensitive” data collection. If an agency is collecting identity documents, financial information or employment records, it must be able to clearly justify why that data is necessary, how it will be stored, who can access it and when it will be destroyed.

Paper sign-in sheets left on a kitchen bench, spreadsheets emailed between staff, copies of IDs stored indefinitely “just in case”, these are not uncommon practices, yet under increased regulatory scrutiny, they are potential liabilities.

Privacy policies must accurately describe what information is collected and how it is handled. If there is a gap between policy and practice, that gap is now exposed.

The hidden risk of over-collection

The property sector often collects more information than it needs. Rental applications can demand years of financial history, extensive identity documentation and references that go beyond what is proportionate to the risk being assessed.

Over-collection increases two things: legal exposure and cyber risk.

From a compliance standpoint, collecting data that is not reasonably necessary for a function or activity can breach privacy obligations. From a security standpoint, real estate agencies are high value targets for cybercriminals, as they hold sensitive data such as identity documents, bank account details and employment information, presenting a goldmine for identity theft and fraud.

When attackers breach a property business, they are not just stealing email addresses. They are stealing digital identities.

“Reasonable steps” now mean more than good intentions

Australian privacy law requires organisations to take “reasonable steps” to protect the personal information they hold. In practice, that standard is rising.

With an ever-evolving, complex cyber landscape, reasonable steps now extend beyond locking a filing cabinet or password-protecting a computer. Agencies must think in terms of multi-layered security: proactive defense mechanisms, advanced threat detection, powerful encryption , multi-factor authentication, regular software updates and clear data retention policies.

For example, if staff are emailing copies of passports between personal accounts out of convenience, that is not considered “reasonable”. If old tenant files are stored indefinitely without review, or if access to rental application folders is shared widely across the office without clear controls, both of these scenarios are also not reasonable.

Privacy compliance and cybersecurity resilience are now inseparable. A privacy policy that promises secure handling of data must be backed by real technical and operational safeguards.

Reviewing privacy policies with operational reality in mind

To help keep your practices in check, agencies should be asking:

• Do we clearly state what information we collect at open homes and during applications?

• Is that collection proportionate and necessary?

• Do we explain how long we retain unsuccessful applications?

• Are we transparent about third parties, such as property management platforms or cloud storage providers?

A privacy policy should not be a template downloaded and forgotten, it should continue to evolve to reflect how the business actually operates. Readiness is essential in this environment. If the OAIC asks how data is collected, stored and destroyed, agencies need to demonstrate alignment between written policy and real-world processes.

Practical steps for enhanced cybersecurity and data privacy

Real estate businesses do not need enterprise-level budgets to improve their security posture, it can be achieved with discipline and clarity. So what does this look like for agencies?

1. Audit your data flows. Map out what information is collected at each stage of your sales or rental process and identify where it is stored.

2. Reduce what you hold. If information is not necessary, do not collect it and if it is no longer needed, then it’s best to securely destroy it.

3. Implement multiple layers of security controls. Limit who on your team can view sensitive documents to an as-needed basis, and implement multi-factor authentication on key systems.

4. Adopt trustworthy endpoint security solutions. Ensure your team’s laptops, property management systems and cloud platforms are regularly updated and protected with reputable security solutions.

5. Train staff. Many breaches begin with phishing emails or simple human error, so having a strong proactive frontline defence means keeping your team aware and updated on safety and privacy.

A cultural shift in the property sector

The OAIC’s compliance sweep is more than just a regulatory review, it reflects a shift in public expectations. Australians are increasingly aware of how valuable their personal data is and how damaging its misuse can be.

The property sector is built on relationships and reputation, so privacy can no longer be treated as paperwork. For real estate agencies, it is part of their brand trust and image, and in a competitive market, agencies that demonstrate strong data security stewardship will stand apart from those that treat compliance as an afterthought.

Alina Bizga is a Security Analyst at Bitdefender, a global cybersecurity leader delivering advanced threat prevention, detection and response solutions that protect millions of consumers and businesses worldwide.