“There is a charm, even for homely things, in perfect maintenance.” Louis Auchincloss

This past week, I visited the annual Apartment Owners Association trade show in Long Beach. I always enjoy meeting new vendors, seeing old friends and hopefully learning something. I was reminded this time about the “balcony laws” (SB 721 from 2018 and SB 326 from 2019) is not just about balconies. These bills will require an inspection by January 1, 2025. This gives us a little over a year, but it’s not a bad idea to get it out of the way. AB 721 applies to all multifamily properties with 3 units or more. SB 326 applies to condominiums, townhouses and multifamily properties of 3 or more units controlled by a homeowners association (HOA).

WHAT NEEDS INSPECTING? I looked up a contractor who does these inspections and I found:

All Buildings with 3 or more units that have the following:

  • EEE: Elevated Balconies, decks, porches, stairways, walkways, landings, stairway systems, railings, handrails and guardrails and entry structures that extend beyond the exterior walls of the building and that rely in whole or in substantial part on wood or wood-based products for structural support or stability; and
  • A walking surface that is elevated more than 6 feet above the ground level; and
  • Balconies designed for human occupancy or use.

The inspections address structural integrity, flashings and waterproofing of these elements.

WHEN DOES IT NEED TO BE COMPLETED? The due date for inspections is January 1, 2025. I am anticipating a lot of people waiting until the last minute, so you may want to get it done early and beat the rush.

WHO CAN DO THE INSPECTION? For AB 721, A licensed architect, civil engineer or a certified building inspector can perform the inspection. This will cover most apartment properties. For condos and townhomes and propertied controlled by an HOA, only a licensed structural engineer a licensed architect will do.

“Concentration is a fine antidote to anxiety. ” Jack Nicklaus

What we at PRS PROPERTIES CAN DO. We are always available to chat. We can give you referrals for professionals, such as contractors, and engineers, so that you can decide who you feel best with. We can supply you with rent and sale comparables in the area of your properties. It is important that you know the true value of your rental units, so that you can get them rented right away at market value, or at least as much as possible with rent control restrictions. We can look at potential purchases that you may be interested in to make the property more desirable, and maybe look at potential issues that an insurer might require you to repair.

If you should decide to sell your building, we can help you exchange into a larger or smaller properties. We can even help you move into something with less management responsibilities. We can also help with getting the paperwork together for a refinance if that is your desire. We can also recommend experienced licensed contractors who can perform any repairs or installations you may need prior to selling. We can also look at your building for other easy and inexpensive changes that might allow you to get a higher value. We can help you to get the maximum value for your property, should you decide to sell, or the maximum return if you are planning to keep your building.

We always have many investors who are looking for “as-is” properties and are willing to purchase with low rents, deferred maintenance or even with a problem tenant in place. We have put together numerous transactions over the years which involve properties that are not listed for sale. Many investors are currently in 1031 exchanges and need to identify a replacement property before their 45 day identification period runs out.

Should you decide to put your property on the market, we will put together an aggressive, targeted and professional campaign to get your property sold fast. We have been doing this for over 40 years, and we will use all the tools available to bring you the most dollars at closing. If you are thinking of selling or are just curious about the value of your property, don’t hesitate to give us a call.