Guide to Condos: Differences Between Apartments and Condos

A condominium (or condo) is a privately-owned individual residential unit situated within a community of other units—like townhomes, high-rise buildings, or a condo complex. Condos are often owned by a person in joint sovereignty with a condo owners association (COA) rather than a large corporation or a property management company, as is the case with apartments. Condo owners buy a condo in the same way that someone buys a home, by depositing a down payment for the condo, paying closing costs, and paying a mortgage to build equity in a space. A condominium may have shared spaces like a garden, a gym, laundry rooms, or a pool, but condo owners only own—and are entitled to renovate—the space inside their individual unit. If you choose to rent a condo instead of buying it, you’ll typically have more direct access to the unit owner than you would if you’re renting an apartment. Though some apartments and condos may appear identical, they have a few main differences between them, such as: - __Ownership__: Condo owners own the space inside their individual unit and are entitled to make renovations inside this unit. If you’re renting a condo from someone, your landlord is likely a private citizen who owns the property and may live on-site. An apartment building is usually owned and managed by a property management company that doesn’t deal directly with tenants. Apartment dwellers typically rent their apartments from these property management companies, and thus, cannot renovate the space. - __Affordability__: A condo owner may be subject to monthly COA fees that help to maintain a complex’s common areas, community amenities, or the upkeep of the condo community exterior (like landscaping or trash removal). The monthly payments for apartment renters usually only consist of rent and utility charges by outside companies. - __Maintenance__: The owner of a condo unit is responsible for any repairs or replacements needed for their homes, such as plumbing or electricity. With an apartment, it is the management company—not the tenant—who is responsible for paying maintenance costs and hiring people to fix them. Condominium associations—similar to homeowners associations or HOAs for developments—are committees that oversee the maintenance of common spaces in a condominium complex—like pools, gyms, parking lots, and gardens—and other annual expenses of the living space. The condo unit dwellers elect a board of directors to oversee those tasks, allocate budget, and determine what fees the residents are responsible for. COAs also decide the CC&R’s (or covenants, conditions, and restrictions) of a complex, which are bylaws regulating what condo owners can or can’t do with their space—for instance, subletting—or the collective space. All you need is a [MasterClass Annual Membership](https://www.masterclass.com) and our exclusive video lessons from prolific entrepreneur Robert Reffkin, the founder and CEO of the real estate technology company Compass. With Robert’s help, you’ll learn all about the intricacies of buying a home, from securing a mortgage to hiring an agent to tips for putting your own place on the market. Condos are a type of housing development available to both buyers and renters. Depending on your budget or the type of lifestyle you live, a condo may be the perfect residence for you.