As you’re exploring your rental options, you may come across both condominiums (or condos) and apartments. Though these may look very similar as you’re touring the individual units, there are some notable differences in how they’re managed and rented. Understanding the difference between a condo and an apartment can help you find the best option.
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As you’re exploring your rental options, you may come across both condominiums (or condos) and apartments. Though these may look very similar as you’re touring the individual units, there are some notable differences in how they’re managed and rented. Understanding the difference between a condo and an apartment can help you find the best option.
What is a condo?
A condo, or condominium, is a type of residence in a building or community in which the person who owns the condo is also the acting landlord. Condos can be rented out as long as the condo community rules allow for it. Condos might be in a community or building that features top-notch amenities like common BBQ areas, a game room, and a swimming pool. Condo owners must abide by Homeowners’ Association (HOA) rules and pay HOA fees, too. The owner may decide to pass on these fees to the renter, resulting in a higher monthly rent.
What is an apartment?
An apartment is usually owned and managed by a professional property management company. That same company owns all the units in the complex and typically maintains a leasing office on-site. The leasing agents you interact with at the apartment complex work for a larger company. Your property manager may have more flexibility but will typically handle every renter the same. Apartments do not have HOA fees attached to them and so renters would never have to foot the bill for extra HOA fees.
Condo vs. apartment
The biggest difference between a condo and an apartment is ownership. Typically, a condo is owned and managed by a landlord and is therefore individually owned. Your landlord is the personal owner of that unit, which makes it unique from those around it. You might have a very different rental agreement from your neighbor because each unit on the property stands alone in terms of ownership. This also means that, someday, you may have the option to purchase the condo rather than simply rent it.
On the other hand, an apartment is usually owned by a corporation, also known as a property management company.In an apartment community, units are typically identical. While you may have a few choices for layout, you’ll find identical flooring, cabinetry, and fixtures throughout the property. Since condos are individually owned, they typically have more customization and better upgrades. Condo owners compete for renters, so there’s a real incentive for your landlord to maintain a better unit than the owner next door. This is where you’ll find elegant features like granite countertops or hardwood floors.
What are other differences between condos and apartments?
Besides ownership, there are other key differences between a condo and an apartment:
Condo vs. apartment: Amenities
Apartments and condos often have similar amenities on the property, which may include things like a pool, a fitness center, and a playground. In an apartment, you’re more likely to find organized activities for the community, which often take place in the leasing office or another common area.
The primary difference is in the management and maintenance of these amenities. When you live in an apartment, the entire property is handled by the same property management company, so access to these amenities is simply included in your rent. Condos typically have a homeowner’s association (HOA) that manages the property. You’ll have to pay separate HOA fees to this organization. Because of this added cost, condo amenities are better kept and there can be more luxury amenities, such as on-site parking, tennis courts, and a spa.
Condo vs. apartment: Policies and rules
In an apartment complex, you’ll receive the same treatment as everyone else in the community. Apartments typically have rules and restrictions on painting, putting holes in the walls, and keeping pets. These are non-negotiable and evenly enforced.
You may have more leeway in a condo, as you can often negotiate directly with the individual owner of the unit. If you want to paint or even upgrade your unit, your landlord may grant permission, especially if you’re adding value to the property. Rules and regulations for the common areas are determined by the HOA.
Another difference between a condo and an apartment in terms of rules is professionalism and experience. You may have a more personal relationship with a condo landlord, which can give you more freedom than in an apartment. However, a condo landlord may be inexperienced with certain property issues as compared to a dedicated management company.
Condo vs. apartment: Maintenance
In an apartment community, maintenance is usually available 24/7 free of charge. An on-site maintenance staff handles everything from leaky pipes to finicky light fixtures. Many apartments even have an online portal for maintenance requests. This means that as a renter, you are not responsible for any repairs or problems within the home.
In a condo, either you or the landlord, or a combination of both, are responsible for maintenance. This can mean some out-of-pocket expenses, although most landlords will be responsible for their own unit’s repairs. While the HOA will cover repairs to shared amenities, things like a faulty faucet will be on you to fix. If you’re a handy person, you may be able to do your own repairs if your landlord allows it.
Condo vs. apartment: Long-term expenses
Another difference between a condo and an apartment is the length of time you want to live there and the costs associated with it. For instance, when you stay in a condo for a long period, costs can average out over time to bring your overall costs in line with renting. However, renting an apartment is more flexible, with less financial exposure if you need to move. In an apartment, rental agreements can be month to month or on an annual basis. Either way, it is easier and less expensive to move out of an apartment than it is to sell a condo when you want to move.
Reviewing the terms of the lease agreement is critical for both an apartment and a condo. This is where you’ll see the little differences spelled out in black and white. Take your time reading through the rules, regulations, and policies of any unit that you’re considering so you understand exactly what you’re responsible for, what you’ll pay, and what perks you’ll enjoy.
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The post Condo vs. Apartment: What’s the Difference? appeared first on The Zumper Blog.