re: Water Heater Drain Code

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Water Heater Vent Code

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To clarify, venting is what you'd do for a gas-fired water heater so the exhaust is vented outside the dwelling. It doesn't sound like that is what you are asking about. If I'm wrong, let me know.

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We have a second floor condo we rent out. I just noticed the water heater (inside the condo) is not vented to a drain or outside. It sits in a dip paint and the pressure relief pipe is piped down to the drip pan, but there is no connection to a drain or the outside (in case the water heater starts leaking). Is this against code?

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Your location may make a difference here since building codes vary based on locality. Also, keep in mind that "code" changes all the time and your condo may have met the code at the time it was built.

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504.7 Required Pan
Where a storage tank-type water heater or a hot water storage tank is installed in a location where water leakage from the tank will cause damage, the tank shall be installed in a pan constructed of one of the following:
- Galvanized steel or aluminum of not less than 0.0236 inch (0.6010 mm) in thickness.
- Plastic not less than 0.036 inch (0.9 mm) in thickness.
- Other approved materials.
A plastic pan shall not be installed beneath a gas-fired water heater.

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504.7.2 Pan Drain Termination
The pan drain shall extend full size and terminate over a suitably located indirect waste receptor or floor drain or extend to the exterior of the building and terminate not less than 6 inches (152 mm) and not more than 24 inches (610 mm) above the adjacent ground surface. Where a pan drain was not previously installed, a pan drain shall not be required for a replacement water heater installation.

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if you are in Louisiana, here you go.
https://up.codes/viewer/louisiana/ipc-2021/chapter/5/water-heaters#5