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.