Are you thinking about buying or renting a home?
Are you confused regarding which one to choose, a condo or an apartment?
It is a big decision, as the place is going to be your home. So, you need to know the difference between a condo vs apartment. Knowing details will always help you in making wise decision.
After all, it is going to be your home.
You have to choose it wisely. So, let’s start the discussion of apartment vs condo. First, we will have the basic knowledge about both condo and apartment, then we will know the difference between apartment and condo.
What Is A Condo?
Have you heard of condominiums?
Yes, a condo is the short form of a condominium. It is basically a private residence. That is located within a larger group of homes or units categorized by shared ownership of common areas, like green space, gyms, and lobbies.
Here, you also should know that condos are self-governing legal entities. That means when you are buying a condo, you are also buying voting rights for the governing body of the condo. That might be the homeowners association that is usually called “the HOA.”
Every Condo owner gets equal votes that are equal to their ownership percentage. That means, in case you own exactly 5% of the condo, you will get 5% of the votes. Here are items on which the condo owners can vote.
- Who should get hired for building maintenance?
- The amount of the budget should be spent on landscaping.
- What is the equipment that should be kept in the gym?
- In addition to all these, the owners also pay recurring membership fees to the association.
These fees are being used to pay the standard operating expenses of the building and include snow removal, upkeep, maintenance, property insurance, pest control, and landscaping as well.
Now, let’s have a look at both the advantages and disadvantages of buying a condo.
|Less expensive in comparison to single-family homes.|
Potentially more secure.
Easier to look after.
Personalization is always possible.
|HOA fees. |
Rules and regulations.
What Is An Apartment?
Now as you know, what a condo is, you should know what an apartment is in order to understand condo vs apartment.
So, an apartment is basically a private residence that is owned by a third-party management company or landlord and obviously rented by a tenant. The usual contract duration for apartment rentals is 12 months.
Once this timeline is over, the rental terms can change. Also, it is really common for rents in order to increase annually. Here, I have to mention that apartment rental contracts are restrictive.
Tenants might not alter the apartments physically and also can replace the apartment fixtures. For any type of customization, it has to be approved by a landlord and is also completely subject to landlord approval.
Landlords are solely responsible for all the essential apartment maintenance on heating and cooling, electrical, and plumbing systems in exchange for rent payments.
Now, it is time to look at the perks and drawbacks of opting for an apartment.
|No maintenance cost.|
Less expensive than any single-family home.
|Simply no equity.|
Limitations of customizing.
Lack of privacy.
Condo Vs Apartment: Difference Between Condo And Apartment?
So, now, you get the basic idea about both condo vs apartment. It is time to talk about what’s the difference between a condo and an apartment.
Unlike any standalone structure or home, both apartments and condos are units that are built within a complex. That means they usually share walls with their neighbors. Generally, all these particular types of homes come with almost similar amenities, like access to fitness centers and access to pools.
But, a condo is owned by an individual, who can always rent out the unit in case they want to. On the other hand, apartments are mostly owned and rented out by the same particular landlord as all the other units in a particular complex.
It means you can buy a single condo when confused between condo vs apartment, however, you can only rent a single apartment. As I have mentioned earlier, Condos are often part of the HOA or homeowners association, which is capable of instituting rules and regulations. For this, HOAs charge some fees that can range something between $100 to $1,000 or can be more than that.
The fees you are paying can go toward the management of your property outside, some services, and lawn maintenance. However, in most cases, the owner is always responsible for all the home-related things that are inside your unit.
For example, you will always be on the hook for the costs of the dishwasher or the fridge breaks, in case you own the unit.
On the other hand, while considering condo vs apartment, apartments are usually overseen by a property management company or landlord who sets all the rules and regulations for all the tenants in the particular complex. Here, you need to pay the rent along with the maintenance fees in case that is required to the entity.
Here, you also should know that, in case of any necessary repairs, that will likely be handled by an onsite maintenance team, and you do not need to pay any extra cost for that. In order to stay on the safe side, it is always recommended to go through your lease contract really carefully because some landlords will pay for more repairs than others.
Read More: 5 Roof Maintenance Tips For Homeowners
Frequently Asked Questions (FAQs):
Now, I am answering some of the most common questions that will help you understand the difference condo vs apartment.
Ans: A condo that is also known as a condominium is basically a residential or housing complex where there are separate units, with every unit being owned by different individuals. When anyone is renting a condo, they are basically renting directly from the condominium owner.
Ans: When you are getting a condominium, you only own a specific unit. That means you are not getting any land. So, no land means less value. Also, more condo units can always fit on a single plot of land, unlike single-family homes. The higher supply of condos can always drive the prices down.
Ans: As I have mentioned in this article, an apartment is completely owned by a leasing company, which leases out its units. On the other hand, a condo unit is specifically owned by a separate condo owner. Under the supervision of a chosen circle of condo owners, a condominium corporation that is a company manages all the condominiums who make up the condo board.
Ans: Whether it is the rural areas, urban areas, or the suburbs, you will find condos everywhere, and they can be both one-story and multiple stories.
What To Choose?
Now, you get the proper understanding of condo vs apartment, so you will be able to pick the right one for you. Still, you need to consider the following things when you are about to opt for any one among them.
- HOA rules.