Digital Tenancy Signing - Security and Legal Considerations

The rental market has seen many changes in the last several years. These days, signing a tenancy online is the norm. No more printing, scanning, and mailing actual documents back and forth. Today, landlords and tenants sign legally binding tenancy agreements with just a few clicks. But on both sides, signing on the digital line requires awareness of major legal and security issues.

Growth of Digital Tenancy Agreements

Digital signing of the tenancy agreement has become much more prevalent, especially during the pandemic that rendered remote transactions a necessity. You can sign a rental agreement completely online through platforms such as DocuSign, Adobe Sign, and HelloSign among others. In this shift, there is an obvious upside: less paperwork, quicker turnarounds, easier storage and retrieval, and even the capability to sign documents from anywhere around the world.

But like any other digital transaction that involves personal and sensitive information regarding people and money, security and legal legitimacy are very crucial issues that have to be thoughtfully considered.

Legal issues of digital signature

When consumers first hear about digital tenancy signatures, the most common question asked is if they are legal. Most of the time, the answer is yes.
The UK’s Electronic Communications Act 2000 and the EU’s eIDAS Regulation say that an electronic signature is legally binding. However, there are some differences. The signature must clearly indicate the will to sign of the person; all parties involved should consent to doing business electronically; and the system operating the process should provide an accurate record of the signature process.

Remember that residential tenancys might have special rules in some places. Always look at the rules for where you live; there are often certain types of contracts or particular provisions which may require traditional signatures or additional processes to verify authenticity.

Things to consider before signing a digital tenancy securely

When it concerns signing tenancy agreements online, security should be the most important thing. Both landlords and tenants are providing private information, such as social security numbers, bank account numbers, job information, and identification documents.

Authentication is so important.

The more reputable digital signature services make sure signers are who they say they are using more than one method of authentication, often through checking your email, sending you SMS codes, asking you questions that test your knowledge, and sometimes checking your government ID. Before you use any platform, be sure you know what kinds of authentication are available.

Encryption is important. All real e-signature platforms use encryption to keep documents safe while they are being sent and while they are sitting still. Look for platforms that at least use 256-bit SSL encryption.

Audit Trails

Besides, a digital signature is better than a normal one because it automates the keeping of tabs on everything.

Good platforms record who viewed the document, when they opened it, how long they looked at it, their location, and when they signed. This creates a clear record that can help solve disputes.

Security Controls

Choose a platform that lets you control who can view, edit, and sign documents. Once all parties have signed the tenancy agreement, it should automatically lock so that no changes can be made to it. You and your tenant should both receive official copies showing whether there have been any attempts to tamper with them.

Tips for Landlords

While consent can be implied, getting permission in writing fortifies your legal standing. Keep copies of all signed tenancys on file securely. If possible store the files in multiple locations.

Also, cloud storage with encryption is excellent, but make sure you have backups that aren’t online.

Include in your tenancy a technology clause that allows the use of digital signatures and describes what to do if the technology does not work when signing.

Best Practices for Renters

This includes being informed of, and agreeing to, the method of digital signature used.

It doesn’t matter what format the tenancy is in, you should never sign it without reading it through. In digital signing, there is a tendency to rush through, but you should make sure to take your time and read every clause.
Check to ensure that you are on the authentic platform. Verify the URL carefully to make sure that you are not on a phishing site that tries to take your information.

Keep copies of all communications and the signed tenancy immediately. You can’t rely on the platform to keep records indefinitely.

In most cases, if you would prefer not to sign digitally, you can request a traditional paper tenancy. Do not feel that you must use technologies with which you are uncomfortable.