How AppFolio Puts Data Security First in Property Management
Key Takeaways
Security Drives Business Growth: A commitment to security is a competitive advantage that can help protect revenue, enhance brand reputation, and strengthen confidence with partners, owners, and residents.
Security Is a Core Requirement: The 2025 AppFolio Benchmark Report validates high urgency, noting 79% of professionals experience payment fraud and 88% face data security challenges.
Security Isn’t an Optional Add-On: AppFolio treats data security as a foundation of trust, embedding it into every layer of its platform at no additional cost.
Comprehensive Defense Is Essential: AppFolio works to protect sensitive information using a multi-layered strategy, including the “Secure By Design” and “Defense in Depth” philosophies, Advanced Encryption Standard 256-bit (AES-256) encryption, and multi-factor authentication (MFA).
Third-Party Validation: Due to its security protocols, AppFolio holds an "A" Security Rating (835/950) from UpGuard and an 8.8 Security Rating from SoftwareConnect.
Building Trust Through Data Security
In today’s property management industry, trust is currency. Residents trust that their personal information will remain private, while owners and investors trust that their business records will be protected. As a result, property managers need more than traditional property management software to keep these promises.
That’s why AppFolio makes data security a central pillar of its platform. Security isn’t treated as an add-on feature; it’s embedded into every aspect of the software. By prioritizing trust and resilience, AppFolio provides property managers with peace of mind when it comes to data security.
Quantifying the Risk: Insights From the 2025 Benchmark Report
Recent findings from the 2025 AppFolio Benchmark Report highlight the growing urgency for stronger fraud prevention and data security in the real estate industry. This data reinforces that a robust, integrated security infrastructure is non-negotiable for modern property management.
Source Document: 2025 AppFolio Benchmark Report.
Survey Audience: Over 2,000 real estate professionals.
Finding 1 (Payment Fraud): 79% of professionals experienced payment fraud issues.
Finding 2 (Data Security Challenges): 88% of professionals faced data security challenges.
The Hidden Cost of Data Breaches in Property Management
Data breaches aren’t abstract risks — they’re costly events with real consequences. A single compromised resident record can lead to identity theft, financial fraud, and compliance violations. For property managers, the fallout can include expensive recovery efforts, lost resident confidence, damaged brand reputation, potential lawsuits, and hefty regulatory fines.
Because property managers are often responsible for safeguarding sensitive data, security failures can be devastating. AppFolio recognizes this reality and has built its platform to minimize exposure to these threats while helping property managers operate responsibly.
A Philosophy of “Secure by Design”
AppFolio’s security philosophy is simple: prevention first. Rather than bolting on defenses after the fact, AppFolio builds every feature with security in mind.
This “Secure by Design” approach means that safeguards are baked into data handling, user workflows, integrations, and system architecture. For property managers, this translates into a more resilient platform designed to help mitigate risks before they escalate.
A Philosophy of “Defense in Depth”
AppFolio also takes a “Defense in Depth” approach. This strategy is built on a simple, powerful assumption: Any single security control, no matter how strong, can potentially fail.
So, rather than relying on a single “wall” of security, AppFolio creates layered resilience, stacking multiple safeguards across its networks, applications, and data. As a result, every user, server, and transaction is guarded by overlapping technical controls designed to slow, contain, and neutralize attacks in progress.
A Comprehensive Security Posture in Practice
By uniting its “Secure by Design” and “Defense in Depth” philosophies, AppFolio creates a security posture that is both proactive and pragmatic. The “Secure by Design” philosophy minimizes vulnerabilities from the start, while “Defense in Depth” provides a robust response if a single control fails.
This comprehensive protection is enhanced through a multi-layered strategy that includes:
Encryption: Data is encrypted both at rest and in transit using industry-leading protocols such as AES-256 and Transport Layer Security (TLS). The goal of these protocols is to render data unreadable to unauthorized parties, even if intercepted.
Authentication and Access Controls: With MFA and role-based access controls (RBAC), only authenticated and authorized users can access sensitive information. Property managers can assign granular permissions so employees see only the data they need.
Continuous Monitoring: AppFolio’s security systems include real-time monitoring and anomaly detection to identify suspicious activity before it escalates.
Redundancy and Backups: Data is backed up across multiple secure environments with redundancy built into the system, minimizing downtime and increasing the odds of recovery in the event of an outage or attack.
This layered approach means property managers don’t have to juggle third-party tools or bolt on extra systems — security is built in at every level.
Empowering Property Managers With Control
Security is most effective when users have visibility and control. AppFolio provides property managers with powerful tools to manage access, monitor activity, and enforce best practices without adding unnecessary complexity.
Role-Based Permissions: Managers can set specific access levels for staff, residents, and owners, allowing each party to see only what’s relevant.
Audit Trails: Important actions are logged, creating accountability and transparency. Managers can trace changes back to specific users, which helps detect misuse or mistakes.
24/7 Threat Monitoring: Restrict access with continuous, real-time threat detection, instantly identifying and blocking unusual login activity.
These features not only strengthen security but also help property managers demonstrate compliance and due diligence.
Continuous Vigilance and Innovation
Cyber threats evolve constantly, which means security can never be static. As a result, AppFolio remains committed to continuous vigilance. AppFolio’s platform is updated regularly with new security patches, and the company invests in ongoing research and development to address emerging risks.
AppFolio also works to empower its customers through education and training in clients’ AppFolio Property Manager accounts, including resources on best practices for password management, phishing awareness, and secure workflows. By combining strong technology with informed users, AppFolio works to create a robust security culture across its customer base.
Why Security Is a Competitive Advantage
Property managers who prioritize security aren’t just protecting themselves — they’re gaining a business advantage. Secure platforms inspire resident confidence, streamline operations, and protect against costly downtime. Plus, owners and investors are more likely to trust managers who can prove they use software with world-class protections.
AppFolio helps its users stand out by delivering both improved performance and increased security. Residents can pay rent or upload sensitive documents through portals that are not only easy to use but also protected by enterprise-grade encryption. Meanwhile, owners and investors can receive critical financial reports and communications with confidence. This trust translates into stronger resident relationships, improved retention, and enhanced brand reputation.
Confidence Backed by AppFolio
In property management, the ability to protect sensitive data is not optional.
AppFolio understands that security is the foundation of trust between property managers, residents, and owners. That’s why the company puts data security at the core of its platform, combining advanced encryption, access controls, and continuous monitoring into a single, seamless solution.
For property managers who want not just improved performance but true peace of mind, AppFolio is the clear choice. With AppFolio, you get more than software — you gain a partner committed to protecting what matters most: your data, your residents, and your reputation.
What Review Sites Say About AppFolio’s Data Security Practices
UpGuard: AppFolio earned an A (835/950) security rating. This score is based on the analysis of hundreds of individual checks across five risk categories: website security, email security, phishing and malware, brand and reputation risk, and network security.
SoftwareConnect: AppFolio earned an overall 9.4 rating from SoftwareConnect, including an 8.8 security rating, specifically.
G2 2025: AppFolio was named a Leader in property management and scored in the top tier of the Leaders quadrant.
Capterra, Software Advice, GetApp: Overall score of 4.5/5 across platforms.
Software Advice 2025 FrontRunner.
Top-rated in four Capterra Shortlist reports.
Real Property Manager Feedback
G2 customer testimonials (five-star) confirming AppFolio's performance in data security include:
Frequently Asked Questions
How does AppFolio protect data while it is stored and being moved?
AppFolio uses a multi-layered defense strategy. This includes encryption, where data is secured both at rest (when stored) and in transit (when moving) using industry-leading protocols such as AES-256 and TLS.
Does AppFolio help with compliance?
While you remain responsible for your company's overall compliance (including all your data handling practices and other systems), AppFolio provides a secure foundation to help you meet your obligations for the data and payments managed within AppFolio.
What tools does AppFolio give property managers to control who sees what?
AppFolio provides features such as RBAC and audit trails. RBAC allows managers to assign granular permissions so employees only see the data relevant to their role. Audit trails log important actions taken, providing accountability and transparency by allowing managers to trace changes back to specific users.
How does the security infrastructure impact the cost of AppFolio's software?
At AppFolio, every client receives the same security protections regardless of plan. AppFolio goes beyond traditional property management software, with security embedded into every aspect. This approach means the comprehensive security and compliance features are part of the platform's core value, providing peace of mind and protecting reputation without security-related upsells.
If I switch to AppFolio, what security protocols are in place for migrating my existing sensitive data?
Data migration is handled within AppFolio's trusted, secure architecture. Your sensitive data is protected during the transfer process using the same TLS encryption protocols used for all data moving in transit. This ensures your confidential records remain secured against unauthorized interception during the transition.
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