Happy Saturday Housing Heroes!
Heads up, California landlords—if you’ve been dragging your feet on balcony inspections, it’s officially crunch time. Senate Bill 721, aka the “Balcony Inspection Bill,” has a deadline coming up fast: January 1, 2025. This law, signed in 2018 after a tragic balcony collapse in Berkeley killed six people, requires regular inspections to keep balconies and other raised structures safe.
If you own a building with three or more units and elevated exterior elements (balconies, decks, stairwells, etc.) that are six feet or higher, you’re on the hook. The state gave us a long grace period to get this done—about six years—but now, with 2025 right around the corner, there’s no more room to procrastinate.
So, what exactly do you need to do?
First things first, you need to hire a qualified professional—think licensed architects, civil or structural engineers, certified building inspectors, or contractors with A, B, or C-5 framing licenses. They’ll inspect 15% of your structural components, checking for things like dry rot, flashing issues, and overall structural integrity. This may involve making small openings in stucco to visually inspect what’s underneath, so heads up on that.
If all’s good, you get an “all clear” report with photos to back it up. If they find any issues, though, you’ll need to make repairs—and fast. Hazardous conditions must be reported to the local building department, and owners have 120 days to complete repairs.
Don’t drag your feet—delays could result in fines ranging from $100 to $500 per day
One key thing to remember: The inspector who does your assessment cannot be the same one who does the repairs. You’ll need to hire a separate contractor for that part. And if you need to get inside tenants’ units for the inspection? You’ve got to give them 24 hours’ notice unless it’s a life-threatening emergency.
Buying a Condo?
If you’re picking up a condo conversion that was completed after January 1, 2019, this inspection must be done before closing escrow. So don’t skip that step during your due diligence.
My Take
Look, I get it—regulations can feel like a pain. No one wants to jump through more hoops, especially if you’re used to the lighter regulations of single-family rentals. But this one? It’s crucial. If a balcony collapse could be prevented and save lives, that’s a no-brainer. Plus, you’re only required to do this every six years. That’s not too bad in the grand scheme of things.
For those of you considering moving up to the multifamily game, just know that it comes with added responsibilities like this. But if you stay on top of your stuff, hire good people, and follow the rules, you’ll be fine. Plenty of qualified contractors can handle these inspections, so don’t sweat it. Just get it done, and avoid the scramble (and fines) when the 2025 deadline hits.
Check out Part 2 of my conversation with Jason Lee, owner of JLM Real Estate, where we dive into the world of multi-family investing.👇
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Steve Welty
CEO @ Good Life Property Management
DRE #01744610
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