Breaking Down the Differences Between Condos and Apartments

Apartments and condos have unique pros and cons: which one is the best for you?

Co-authored by Devin McSween

Last Updated: March 11, 2023 References

Differences Between Condos and Apartments

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Pros and Cons of Condos

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Pros and Cons of Apartments

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Which property should I choose?

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What about townhouses?

With your lease up in a few months, you’re probably already on the hunt for your next home. You’ve been looking at both apartments and condos, but after inspecting each place, you’re not really sure how these properties are all that different. If you’re in the market for a new home and aren’t sure about getting an apartment or condo, you’ve come to the right place! In this article, we’ll tell you about all the differences between condos and apartments. To help you make the best decision for you, we’ll also go over their pros and cons. Read on to find your next place!

Things You Should Know

You typically buy and own a condo, while you rent an apartment. Owning a condo builds equity, while renting an apartment does not.
In an apartment, the management company takes care of repairs. In a condo, you’re responsible for maintenance.
Condos typically have nicer amenities and customizable features. They usually have higher-up front costs and require an additional monthly HOA fee.
Apartments offer more flexibility to move and are easier to maintain. They don’t build equity though and might not be as upgraded as condos.

Section 1 of 5:

Differences Between Condos and Apartments

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You typically buy a condo, while you only rent an apartment. The main difference between condos and apartments comes down to ownership. While a company typically owns the condo complex, you buy and own a condo unit. With an apartment, a management company owns the complex and the units. They then rent out the units to tenants, aka you!^{[1]
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- While it’s common to buy your own condo unit, you’ll often see condos for rent. In this case, you rent the condo from the current owner, not the management company.
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Apartments and condos have different dues and fees. When you sign an apartment lease, you typically provide 1st month's rent and a security deposit, usually the price of rent.^{[2]
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Research source} If you buy a condo, you typically make a down payment and pay for closing costs and an inspection. Most complexes also have a homeowner’s association, or HOA, which requires you to pay a monthly fee to go towards the upkeep of the complex.^{[3]
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- Condo down payments typically range around 3-20% of the mortgage’s price.
- Buying a condo is often more expensive up-front than renting an apartment.
- Renting a condo tends to cost similar to renting an apartment. Depending on your landlord, you might have to pay HOA fees even though you’re renting.
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Maintenance is up to you in a condo, but to a landlord in an apartment. When something goes wrong or breaks in a condo, it’s up to you as the owner to fix it. This is different from making repairs in an apartment. Typically, the management company provides a 24/7 maintenance service. They’ll fix problems ranging from a dishwasher on the fritz to replacing smoke detector batteries.^{[4]
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- If you rent a condo, maintenance might be up to you in some situations, or fully up to the owner. This just depends on the landlord's specifications.
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Buying a condo builds equity, while renting an apartment does not. When you buy a condo, you pay a monthly, fixed mortgage. At the same time, your property can appreciate in value and be worth more than when you bought it. So, the money you put into your condo often comes back to you and increases your wealth. When you make payments on an apartment, all the money goes to your landlord. So, you’re not making an investment or building equity when you rent.^{[5]
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- Equity is defined as the value of your property minus what you still have to pay off. If you bought a condo for $100,000 and still have $55,000 left in payments, the equity of your condo is $45,000.^{[6]
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- The average condo might appear nicer than the average apartment. There is an incentive for owners to update their unit and keep it in stellar condition to reap the benefits of an increase in value.

Section 2 of 5:

Pros and Cons of Condos

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Pros: condos build equity and often offer greater amenities. One of the greatest perks of owning a condo is making an investment that has the potential to build wealth over time.^{[7]
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Research source} While you won’t get this benefit when you rent a condo, you do typically get nicer amenities. The HOA fees that owners pay allow complexes to invest in fancier pools, lounge areas, gyms, and general upkeep and appearance of the building.^{[8]
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- Condos are often great purchases for first-time buyers. They’re usually cheaper than houses while still building a similar amount of equity and wealth.
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Cons: condos are often more expensive and require manual repairs. The initial down payment and other costs associated with buying a condo are often more expensive than renting an apartment. There is also the added monthly cost of paying HOA fees, which apartments don’t have. When things break in your unit, you are also the one that has to fix them or pay to get them fixed.^{[9]
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- If you buy your condo, you also have less flexibility to move. You’ll either have to sell the unit or rent it out to a tenant.
- If you rent a condo, the owner is able to sell the unit while you’re living there. So, renting a condo might offer less security than an apartment.
- Like apartments, condos aren’t completely private. You typically share at least 1 wall with another unit. Depending on the complex, you might live above or below someone, too.

Section 3 of 5:

Pros and Cons of Apartments

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Pros: apartments offer more flexibility and require little maintenance. If you want to live in and explore lots of different places and cities, apartments are definitely the way to go. The typical apartment lease is 1 year long, which means that you aren’t stuck living in the same place for long. When it comes to making repairs, your landlord or leasing company is responsible for doing and paying for maintenance. So generally, there’s more freedom and less responsibility with an apartment.^{[10]
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Cons: apartments don’t build equity and aren’t as customizable. One of the biggest drawbacks of renting is that you aren’t investing your money or building your wealth when you make monthly payments. Apartment units generally have a cookie-cutter appearance with the same layout, floors, and appliances. This is unlike condos, which can be upgraded. Your lease might also have restrictions on decorating and painting, but that varies for each landlord and complex.^{[11]
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- Rent also tends to increase each year, though most states have restrictions on how much. If you buy a condo, your monthly mortgage payment is the same for the duration of your loan.

Section 4 of 5:

Which property should I choose?

If you want to own, choose a condo; for flexibility, rent an apartment. Choosing to buy a condo or rent an apartment is really down to your lifestyle and living needs. If you’re ready to settle down and make a place truly yours, a condo is a great choice. On the other hand, apartments offer more flexibility to move and less responsibility to maintain. So, they’re perfect if you’re in a more transient period of your life.^{[12]
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- If your choosing between renting a condo or an apartment, a condo might offer you greater amenities and a more customizable unit.

Section 5 of 5:

What about townhouses?

A townhouse is a larger, 2-story property that you typically buy. Unlike both condos and apartments, a townhouse has 2 stories. The units are built right next to each other, so a townhouse usually shares at least 1 wall with another. Because they’re 2 stories, they tend to be larger than condos and apartments. Townhouses are typically bought, though you’ll often see them for rent, too.^{[13]
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- Townhouses usually include a front and back lawn. If you buy one, you’re responsible for yard upkeep as well as house maintenance.
- Like condos, townhouses usually have an HOA that requires a monthly HOA fee.
- It’s typically more expensive to buy a townhouse than a condo.