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The True Cost of Ignoring SB 721: Fines, Lawsuits, and Liability Risks

SB 721

Owning or managing a multifamily residential property in California comes with significant responsibilities, including compliance with SB 721, a law designed to enhance the safety of exterior elevated structures such as decks, balconies, and stairways. Failure to adhere to SB 721 requirements can lead to severe consequences, including fines, lawsuits, and liability risks. Understanding these costs is crucial for property owners and managers who want to avoid legal trouble and ensure tenant safety.

SB 721: Financial Penalties and Legal Consequences

Ignoring SB 721 can result in substantial financial penalties. The law mandates that all multifamily properties with exterior elevated elements undergo professional inspections every six years. If property owners fail to comply, they may face fines from local building departments. These fines can escalate over time, leading to significant financial burdens.

Beyond fines, property owners who neglect required inspections may be subject to legal action. Tenants or regulatory agencies can file lawsuits for noncompliance, especially if a structural failure occurs. In extreme cases, noncompliance can result in court orders mandating repairs, further increasing costs. By proactively scheduling SB 721 inspections, property owners can avoid unnecessary legal and financial strain.

Liability Risks and Tenant Safety Concerns

One of the most serious risks of ignoring SB 721 is liability for injuries or fatalities caused by structural failures. If a deck or balcony collapses due to neglect, property owners can be legally responsible for damages, medical expenses, and even wrongful death claims. In such cases, insurance companies may refuse to cover losses, leaving owners to pay out-of-pocket for settlements or judgments.

In addition to legal liability, maintaining safe structures can harm a property’s reputation and tenant relations. Unsafe living conditions can lead to decreased occupancy rates, difficulty attracting new tenants, and potential lease agreement violations. Prioritizing SB 721 compliance helps property owners maintain a secure environment, protecting residents and their investments.

SB 721  Conclusion

The cost of ignoring SB 721 extends far beyond initial fines, including legal repercussions, liability risks, and potential harm to tenants. Property owners can avoid unnecessary expenses and maintain a safe, legally compliant property by staying proactive and ensuring regular inspections. Investing in inspections today can prevent costly consequences in the future, safeguarding both financial and legal interests.

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