July 11, 2025
Author: Kat Calejo
If you’re in real estate, lending, or you run an RV resort or manufactured housing community, you’re sitting on a goldmine of sensitive data, and cybercriminals know it. Names, Social Security numbers, income details, bank accounts, and credit reports. That kind of data can open doors to identity theft, wire fraud, and ransomware attacks that take your whole operation down.
California already has some of the toughest privacy laws in the country, but they’re not stopping there. New rules are on the way that give your clients even more power over how their data is collected, shared, and stored. That means more responsibilities for you, and more risk if you get it wrong.
A lot of small and mid-sized businesses think they’re flying under the radar. They figure these rules are for big banks and giant property managers.
They’re not.
If you’re handling California residents’ personal data, and your security isn’t up to par, you’re the low-hanging fruit. And now that the state has a dedicated privacy watchdog and bigger fines in play, the cost of ignoring this just keeps going up.
In this blog, we’re breaking down exactly what’s changing, why it matters for your business, and what “reasonable security” really looks like in 2025 and beyond. If you’re serious about protecting your clients, your reputation, and your bottom line, keep reading.
What you need to know about California’s privacy laws right now
First, a quick reality check. California’s CCPA (California Consumer Privacy Act) and the CPRA (California Privacy Rights Act) are already some of the strictest privacy laws in the country. If you’re collecting or storing personal information on California residents—including your tenants, borrowers, or anyone who fills out a form on your website— you’ve got responsibilities.
Here’s what that means in plain English:
- Your clients have the right to know exactly what data you’re collecting, why you’re collecting it, and who you’re sharing it with.
- They can ask you to delete it or fix it if it’s wrong.
- They can tell you not to sell or share it (and yes, some types of digital advertising or lead lists count as “selling”).
- If you slip up and get breached because you didn’t have “reasonable security,” they can sue you.
Most SMBs never think they’re big enough to get hit by this. But here’s what trips people up: the law kicks in if you make over $25 million in annual revenue, OR you handle data from 50,000+ people or households each year, OR if you make half your money selling personal info.
You don’t have to check all three boxes; just one is enough. Even if you’re technically under the threshold, bigger companies you do business with are going to expect you to play by these rules anyway.
Bottom line? If you’re collecting or storing sensitive info in California, you’re on the hook for protecting it. And the way regulators see it, strong cybersecurity isn’t optional, it’s your first line of defense.
What’s changed in 2025, and what will change in 2026?
Now let’s get into what’s coming down the pipeline.
California isn’t just talking about privacy anymore. They’ve got a dedicated privacy watchdog in the yard, and it’s getting ready to roll out new requirements that hit your business where it counts.
How you handle personal data and how tight your cybersecurity really is is about to become more important than ever.
Here’s what you need to watch for:
1. Automated Decision-Making Rules: If you’re using any kind of AI or algorithm to make decisions about people (like whether someone qualifies for a loan or rental, for example), you’ll have to tell them. The CPPA is drafting rules that could also give people the right to opt out of these automated decisions altogether.
2. Annual Cybersecurity Audits: The CPPA wants certain businesses to prove they have “reasonable security”, not just claim it. That could mean you’ll be required to run an annual security audit and show you’re doing real risk assessments, not just crossing your fingers. Check out this Audit Regulations fact sheet for more information on this.
3. The Delete Act: Starting in 2026, Californians will be able to make one simple request to wipe their personal info from every data broker in the state. If your business buys lead lists, uses third-party marketing data, or partners with vendors who do, this could hit you in the back office fast.
All of this means your business needs a better handle on what data you collect, where it goes, and whether your security stack can actually protect it. And the days of just tossing up a generic privacy policy and hoping for the best? Those are numbered.
3 things to help you get ready before you’re forced to
Here’s the good news: staying ahead of these new privacy rules doesn’t have to be a massive overhaul. But waiting until you get slapped with a fine— or worse, a breach that blows up your reputation— is the most expensive way to do it.
If you run a mortgage brokerage, manage manufactured housing communities, handle loan documents, or store tenant data, here’s what you should be doing right now:
1. Know What Data You Have and Where It Lives: Start with a simple data map. What personal information are you collecting? Where is it stored, like local servers, cloud drives, or third-party apps? Who has access? You can’t protect what you can’t see.
2. Tighten Up Your Cybersecurity Basics: If you’re still running on just a username and password, you’re playing with fire. Lock down every login with multi-factor authentication (MFA). Encrypt your files at rest and in transit. Use endpoint detection tools that spot threats before they spread. This is the kind of “reasonable security” the CPPA and the Attorney General look for when they investigate a breach.
(Want to double-check what the law actually says? Look at Cal. Civ. Code § 1798.100 for the consumer rights piece.)
3. Review Your Vendors and Partners: You could have the best security on the planet, but if your loan processing partner, property management app, or lead list vendor is sloppy, your data is still exposed. California law expects you to have contracts in place that hold third parties to the same standards you follow. If you don’t have those agreements, it’s time to get them signed.
This is the stuff regulators are watching for. If you can’t show you’re taking these steps seriously now, you’re going to spend a lot more money trying to fix it later.
Your privacy compliance is only as strong as your cybersecurity
Here’s the bottom line: California’s privacy laws are getting stricter, and your business is only as safe as your weakest security link.
It doesn’t matter if you’re a small brokerage, an RV resort, or a manufactured housing community. If you handle personal data, you’re a target. Hackers want it. Regulators want proof you’re protecting it. And your clients expect you to keep it safe.
Ignoring this isn’t just risky, it’s expensive. One breach can mean fines, lawsuits, and lost trust you may not get back.
The good news? You don’t have to figure this out alone. At Network Thinking Solutions, we’re SOC 2 certified, which means we follow strict security standards to protect your data and keep you compliant. We help real estate pros, lenders, and local businesses lock down their systems, train their teams, and stay ready before privacy changes hit your bottom line.
When privacy laws change, and they will, your cybersecurity should be ready.
Want to see where you stand? Let’s talk.