Step-by-Step Compliance Tips to Avoid Fines, Lawsuits & Insurance Gaps

Last Updated: August 7th, 2025

Published on

August 7, 2025

INSTANT ADU EVALUATION

Fill out the form below and one of our team members will contact you to help get started.

Why Compliance Matters More Than Ever

Between stricter timelines, safety mandates, and rising insurance scrutiny, compliance failures can now result in:

  • Costly lawsuits
  • Canceled insurance policies
  • Fines or business license suspensions
  • Tenant relocation obligations

The good news: with a proactive plan, you can meet obligations efficiently and protect your investment.


✅ Step-by-Step Compliance Plan

1. Identify What Laws Apply to Your Properties

  • Rental apartment buildings? → SB 721
  • HOA condos? → SB 326
  • Building new units or converting land? → AB 130 / SB 131 (CEQA exemptions, permitting)
  • Local ordinances? → Always check for stricter city rules

2. Schedule Timely Inspections

  • Don’t wait until the last minute—inspectors are booked months out.
  • Budget $200–$500 per EEE for thorough, professional inspections.
  • Confirm your inspector is licensed and provides documentation suitable for legal or insurance purposes.

3. Document Everything

  • Inspection results
  • Repair quotes & invoices
  • Permits filed
  • Tenant notifications
  • Emails with city agencies

Store these digitally and securely.

4. File Reports Promptly

  • For SB 721, reports and evidence of repairs may be requested by local jurisdictions.
  • For SB 326, include findings in your reserve study and board meeting minutes.

5. Act on Safety Findings

  • Immediate safety threats (e.g., dry rot, sagging decks) must be handled within 120 days for rentals.
  • Consider temporary closures of unsafe elements until repaired.

6. Check Insurance Policies

  • Carriers are increasingly requiring proof of EEE inspections.
  • Failure to comply may lead to non-renewals or denied claims.
  • Submit inspection reports during your policy renewal process to stay protected.

7. Update Internal Processes

  • Train property managers and maintenance teams
  • Review your leases—ensure they reflect updated legal responsibilities
  • Establish annual safety checklists

Final Tip: Build a Compliance Calendar

Track:

  • Inspection due dates
  • Repair deadlines
  • Permit timelines
  • Policy renewal dates

A single missed date can cost thousands—proactive scheduling is your best protection.

Get A Free Estimate

Contact Form