Condos vs. Apartments: 7 Key Differences, Pros and Cons

Should you rent or buy? That sums up the difference between a condo vs. apartment, but there's more to it than that. While it's almost impossible to tell between a condo and an apartment from the outside, they both have distinct characteristics that can impact your lifestyle, finances and overall living experience.

So, if you're wondering what the differences are between condos and apartments, read on for expert advice from our team of RE/MAX real estate agents and multi-family specialists today!

What's the Difference Between Condos vs. Apartments?

#1 – Ownership Structure

Apartment complexes are owned by a single company or entity, meaning all of its units are rented out to tenants. As a result, apartments often follow strict rules set forth by the owner and/or property management company when it comes to late payments on rent. It is not uncommon to see adult-only and pet-restrictive apartment buildings due to the tight rules in place.

With condominiums, each unit is owned individually. So when you buy a condo, you purchase a specific unit that shares ownership of common areas with other owners. This shared ownership is managed through a condo corporation, which all buyers become part of upon purchase. It's like a homeowners' association but for multi-family properties. As an owner, you have the opportunity to take on responsibilities such as becoming a member of the condo board, attending annual meetings, and more. Condo buyers need to be aware of what the condo corporation deems is the responsibility of the owner (more below).

#2 – Types of Parking

A key difference of apartments vs. condos is the type of parking available. Since an apartment is a rental, you often find a variety of parking options that may include:

1. Shared underground or outdoor parking where it's first come, first serve
2. Limited parking where there are only a certain number of spots available for residents
3. Street parking which is more common in smaller, older developments where residents have to park streetside as there are no stalls on the property

As we've discussed in another article on parking in condos, there are three main types: titled, leased, and assigned. The main difference is more or less explained in the name.

Titled parking is where the stall is owned by the condo owner. Leased parking is where the stall is rented out to an owner by the condo corporation or another owner in the building. Assigned parking is usually the least appealing type of parking, where the lines are skewed when it comes to condos vs. apartments. This type of parking assigns a stall to you which is often up for grabs by more senior residents in the building.

#3 - Property Management

Condos and apartments utilize different management systems, which is a key difference to consider when considering which is best for your goals. Professional property management companies manage apartments and care for everything from collecting rent to performing maintenance. Their team of staff usually include property managers, maintenance teams and leasing agents, creating a streamlined management system for any apartment complex.

Conversely, in condos, owners are responsible for managing their units including maintaining and upkeep of the interior and outdoor living spaces. Usually anything inside the walls is the owner's responsibility, but this can change depending on the type of development. For example, in some townhouse and condo projects, the owners are also responsible for any furnace vents despite being inside the walls, as they connect to the utility room inside the unit. So, make sure to carefully read any building's bylaws before buying so you fully understand what is and isn't your responsibility.

#4 – Cost of Living

Costs are an imporant consideration when choosing a condo vs. apartment to live in, especially for those with budget limitations or preferences. Living in an apartment, you'll have to cover monthly rent, security deposit, renter's insurance, and any utilities that aren't included. In many instances, sewer and water are covered by rent, while natural gas and power are not.

Condo ownership often comes with more costs, including mortgage payments (and interest), property taxes, condo fees, utilities not covered by the condo fees, homeowner's insurance, and maintenance/upkeep of the unit.

When weighing out the cost differences between condos and apartments, it's important to also consider the local real estate market. For example, in some markets, rental vacancies may be high, meaning rent costs are likely lower. If mortgage rates are high, then it may be higher of a cost to buy a condo versus renting an apartment.

#5 - Owning vs. Renting

Another important consideration is the pros and cons between owning and renting. Focus on your long-term financial goals; if building equity is important, you'll want to consider buying. Additionally, in strong residential real estate markets, it is not uncommon for property values to increase over time, which helps negate any interest paid as part of your mortgage. Sometimes, a condo's value gain rises so much that it offsets high interest rates.

Another consideration is flexibility. Renting an apartment may be ideal if you need to be flexible or are concerned about your financial security over the long term. This way, you'll have peace of mind knowing you're not locked into a mortgage and can change your plans within a relatively short period without stressing about money.

As mentioned above, the costs associated with renting an apartment vs. condo buying should be considered before choosing what best suites your wants, needs, and lifestyle – which brings us to our next tip.

#6 – Maintenance Responsibilities

Renting an apartment comes with peace of mind knowing that when something does break, it's not your responsibility to fix it. Tenants must submit a maintenance request to the property manager who handles all repairs, common-area upkeep, and landscaping – costs that are already factored into your rent.

For condos, maintenance responsibilities are split between the condo corporation and unit owners. The condo corp. maintains common areas such as lobbies and hallways, exterior features such as cladding and windows, and anything inside the walls of the unit, while owners are responsible for everything outside the walls inside of their unit. This means condo owners must budget forh routine maintenance and unexpected repairs.

#7 – Lifestyle Considerations

Choosing whether to rent an apartment or buy a condo often reflects your current lifestyle and future plans. For example, renting offers flexibility; you could easily relocate to another province or state with no financial commitments like a mortgage weighing on your decision to move. This is why apartment living is often great for younger adults experiencing life to the fullest as they look to develop their careers, travel, and enjoy themselves.

Conversely, condo ownership is often ideal for those looking to put down roots and are ready to step into home ownership. Owning a condo could be vital for you, especially if you plan on having children and need a stable, guaranteed place to live. If renting, for example, your landlord could force you to move at any time, which could be inconvenient, especially if a baby is coming soon or you have young toddlers or newborns.

Dawn of Mixed Developments: Condo & Apartment Living

Today, many developers are opting for mixed-use projects where you'll find both rental and for-sale units. Therefore, if you're a condo buyer, you'll want to distinguish what types of units are found in a building before signing any purchase contract, as this could affect its appeal as a place to live over the long term.

When it comes to condos vs. apartments, the latter often has a higher turnover rate, and in some cases, renters may not be as respectful of the building's bylaws as they do not have any financial interest in the property.

Condos vs. Apartments: What's Best for Your Goals?

When deciding between a condo and an apartment, it's crucial to consider your long-term goals, financial situation, and lifestyle preferences. If building equity and establishing a home base for the family are priorities, condo ownership offers the opportunity to invest in your future while having control over your living space. On the other hand, if flexibility and minimal responsibility are important to you, apartment living provides the freedom to move easily and avoid maintenance costs.

Consider consulting with a real estate professional who can help evaluate your specific circumstances and local market conditions to make the best decision for your future. Remember, there's no universal "right choice" – the best option is the one that matches your real estate goals best.