Understanding the costs and requirements of California's SB 721 is essential for apartment and multi-unit property owners. This guide will clearly break down what you need to know, including expected costs, inspection criteria, and ways to save money while ensuring compliance.

What Exactly is California SB 721?

California Senate Bill 721, also known as the Balcony and Deck Inspection Mandate, was established to protect residents by requiring periodic inspections of balconies, decks, stairs, walkways, and similar structures in multi-family residential buildings. Specifically, SB 721 mandates visual and, if necessary, invasive inspections to identify potential hazards and structural weaknesses, ensuring residents' safety and reducing property owners' liability.

Which Properties Need SB 721 Inspections?

The mandate applies to all multi-unit residential buildings with three or more dwelling units, including apartments, condominiums, and mixed-use properties. Single-family homes and duplexes are exempt. If you own or manage any multi-unit residential properties in California, compliance is not optional. it's legally required.

When Are SB 721 Inspections Required?

SB 721 requires the first inspection by January 1, 2025. Subsequent inspections are mandated every six years thereafter. However, properties newly constructed less than 10 years ago must be inspected within six years after receiving their occupancy certificate.

What Happens During an SB 721 Inspection?

Inspections involve visual assessments by qualified professionals such as licensed structural engineers, architects, or certified contractors. The inspector checks structural elements for deterioration, dry rot, water damage, rust, or any condition threatening structural integrity. In certain cases, invasive inspections (removing portions of walls or flooring) may be required if problems are suspected.

Average Cost of SB 721 Inspections for Multi-Unit Buildings

The typical inspection cost ranges significantly, depending on property size, location, and accessibility. For most multi-unit apartment complexes in California, inspection costs average between:

• $75 - $150 per unit for visual inspections.

• $200 - $400 per unit if invasive inspection or additional testing is required.

For example, a 100-unit property would typically cost between $7,500 to $15,000 for basic visual inspections, but invasive inspections could increase that range substantially.

Factors That Affect Inspection Costs

Several factors can impact the final inspection cost, including:

• Property Size and Complexity: Larger properties or those with multiple stories and complex layouts will likely incur higher inspection fees.

• Accessibility: Difficult-to-reach balconies or decks require special equipment, raising inspection costs.

• Property Condition: Buildings showing signs of damage or neglect typically require more invasive inspections, increasing costs.

Potential Additional Costs After Inspection

If inspectors identify structural issues, you’re required to complete repairs within specific timeframes. Repair costs can vary dramatically depending on severity. Common issues like dry rot or water intrusion can cost thousands to address, making regular maintenance vital to minimize costly repairs.

Ways to Minimize Inspection and Repair Costs

• Proactive Maintenance: Regularly maintain and document the condition of decks, balconies, and stairs to identify problems early.

• Budget Planning: Allocate funds specifically for inspection and potential repairs in your annual maintenance budget to avoid sudden financial strain.

• Bulk Pricing: Consider negotiating bulk inspection pricing with qualified inspectors if you own or manage multiple properties.

Consequences of Non-Compliance with SB 721

Failure to comply can lead to significant penalties and liability. Owners could face fines, legal action, insurance coverage denials, or even property closure. More importantly, non-compliance exposes residents to safety risks, increasing liability and harming your reputation.