Understanding SB 721’s 15% Rule: What Property Owners Actually Need to Know in 2025

If you own a multifamily property in California, you’ve probably heard a lot of confusing information about SB 721, the state law requiring inspections of elevated exterior elements (EEEs) such as balconies, walkways, stairs, and exterior corridors.

Unfortunately, most explanations online aren’t written for property owners. They’re written in legal or engineering language, which leaves people stuck wondering: How much of my property actually needs to be inspected?

This guide explains SB 721 in simple, accurate terms—especially when it comes to the 15% rule.

What SB 721 Requires in 2025

SB 721 applies to apartment buildings with 3 or more units in California. It mandates that property owners have their elevated exterior elements inspected every 6 years by a qualified inspector.

The goal is simple: prevent structural failures and keep buildings safe.

What counts as an “elevated exterior element”?

Under the law, an EEE is any structure that:

• Is six feet or more off the ground
• Is designed for human use or occupancy
• Relies on wood or wood-based components for support

This includes balconies, exterior walkways, stairways, landings, patios, decks, elevated entries, and catwalks. If people walk on it and it’s high enough off the ground, it likely counts.

The 15% Rule — How It Actually Works

This is the most misunderstood part of the law.

SB 721 requires inspectors to examine 15% of each type of elevated exterior element on the property. Not 15% of all elements combined—15% per category.

Example Calculation

If your building has:

• 20 balconies
• 10 walkways
• 6 landings
• 2 stair towers

The inspection must include:

• 3 balconies (15% of 20)
• 2 walkways (15% of 10)
• 1 landing (15% of 6)
• 1 stair tower (minimum of one per type)

This ensures the inspection is representative of each system, not just the easiest areas to access.

SB 721 vs SB 326: What’s the Difference?

Many owners confuse these two laws, but they serve different property types.

Feature	SB 721	SB 326
Applies to	Apartment buildings (3+ units)	Condominiums / HOAs
Inspection scope	15% per EEE category	Statistically significant sample
Inspection cycle	Every 6 years	Every 9 years

If you own apartments, you are under SB 721, not SB 326.

What Happens If the Inspector Finds Damage?

Not all findings are emergencies. The law divides issues into categories:

Immediate Threats to Life Safety

Examples: rotten load-bearing members, failed waterproofing with active sagging, severe structural compromise. These must be reported immediately and typically require barriers, load restrictions, or emergency repairs.

Non-Urgent Repairs

Examples: minor rot, failed waterproofing that hasn’t caused significant structural damage, rust on connectors. Owners must complete repairs within the timeframe listed in the report.

What SB 721 Does NOT Require

This part surprises many property owners:

• You do NOT need to open every balcony or walkway
• You do NOT need to expose structural members unless recommended
• You do NOT need to bring everything up to modern code
• You do NOT need to inspect non-wood-supported elements (steel-only systems are exempt)

Why the 2025 Deadline Matters

The final extension deadline for SB 721 compliance is January 1, 2026. That means 2025 is the busiest inspection year yet, and inspectors, engineers, and contractors are already booking out.

Waiting too long could leave you:

• Out of compliance
• Without available inspectors
• Paying higher prices due to demand
• Unable to complete repairs before the deadline

Final Thoughts

Most property owners just want to know: What exactly needs to be inspected? How many elements? What happens if something is wrong?

This article gives you the real, simplified version of SB 721 without legal jargon or scare tactics.

If you want an property inspector who explains everything clearly and guides you through the entire process, we can help.

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