What’s the Difference Between a Condo and an Apartment?

Until you’ve lived in one or the other, it’s easy to mistake condos and apartments as two terms for the same type of dwelling, but key differences affect the owner or tenant’s living situation.

“When it comes to choosing a residence, the terms condo and apartment are often used interchangeably, leading to confusion among potential buyers or renters,” says Jules Kelai of Better Homes and Gardens Real Estate Universal. “While these two types of residential units share similarities, they also possess fundamental differences that can impact your lifestyle, investment, and overall satisfaction.”

The Main Differences Between Condos and Apartments

Keep the main differences between each type of unit when you’re deciding between the two. 

Ownership

Jon Leckie, a writer and researcher for Rent, says the ownership and legal structure are the defining differences between condos and apartments. 

“A condo is a type of real estate where individuals own their individual units and have shared ownership of common areas and amenities,” he said. “Apartments, on the other hand, are typically rented from a landlord or property management company, with no ownership rights for the tenants.” 

With a condo, you own your dwelling and can operate in many of the same ways as you would when owning a home. You can make changes, and you don’t have to worry about hanging pictures on the walls or finding out that the landlord raised the rent. One significant difference is that as an owner of a property, you must take care of your condo’s upgrades and repairs should the fridge die or a pipe burst. 

Initial Investment and Repairs

“Condos can be a good option for young families who are looking to take on the responsibility of owning a home and want to build equity without the larger investment often required of a single-family home,” says Mark Olson, home insights expert for home insurance company Hippo. 

However, an apartment is typically a rented unit owned by a landlord, and those living in the apartment don’t have any ownership of the property. That means you can’t renovate the bathroom, and what you’re paying to live there is subject to change. Perhaps the biggest difference is that landlords are responsible for repairs to your unit, big and small. That means you don’t have to pay to fix a leaky faucet or broken air conditioning unit. 

Privacy

“Apartments generally have less space, privacy and freedom to make changes, compared to a condo,” Olson says. “Sharing walls with other homeowners can also complicate who’s responsible for things like water leaks that impact both homes.”

However, both types of dwellings have shared common areas as they are typically part of a larger development. 

Maintenance and Services

“Owners of condos and apartments are responsible for maintaining the home from the walls in, with exterior maintenance generally handled by an HOA,” Olson says.

Apartments might have access to shared amenities such as a gym, laundry facilities, or a dog park. These areas are maintained by the owner of the overall property and units. 

Condos are similar in that they also often have shared amenities, which are maintained by the homeowners association. 

“Condos often offer a range of amenities and services that are not as commonly found in apartments,” Leckie says. “These can include facilities like swimming pools, fitness centers, concierge services, gated security, and shared outdoor spaces. Apartments may have some amenities as well, but they are usually more limited in scope compared to condos.”

The HOA typically handles lawn care and landscaping and provides services such as snow shoveling in winter. 

Factors to Consider as You Choose

If you’re deciding between an apartment and a condo, you’ll want to consider the major differences in upkeep first and foremost. While an HOA might not be a factor where your apartment is located, you won’t enjoy shared amenities that condo owners enjoy or the maintenance that the HOA does for common areas such as lawns and parking lots. 

Cost and Flexibility

Of course, a major advantage to renting an apartment vs. owning a home or condo is that you never have to worry about selling your property. You can always end your lease early or wait for it to expire and then walk away without worrying about what happens to the unit, and renting is much less expensive than owning. 

“Owning a condo involves mortgage payments, property taxes, insurance, and monthly HOA fees for shared expenses,” Leckie says. “Additionally, condo owners are responsible for repairs and maintenance within their units. Renting an apartment generally involves monthly rent payments that may include utilities, but the tenant is not responsible for property taxes or major repairs.”

If you own, you must go through an often stressful process of finding the right buyer.

Investment Value

“Condos often provide a sense of ownership and potential investment value, allowing individuals to build equity over time,” Leckie says. “They also offer more amenities and the potential for a stronger sense of community. However, condo ownership comes with additional costs and responsibilities.”

The good news is, owning a condo means building equity, which offers good investment potential. 

“Condos often appreciate in value over time, making them a suitable choice for buyers seeking long-term investment opportunities,” Kelai says. “Additionally, condos can be leased out to tenants, providing a steady income stream.”

Leaving is much easier if you live in an apartment, but there’s a tradeoff. 

“Apartments, on the other hand, offer greater flexibility in terms of moving and less financial commitment,” Leckie adds. “However, they may have fewer amenities and limited control over the property. Additionally, rent payments do not contribute to building equity.”

Choosing between one or the other depends on your unique needs and stage in life. 

“Ultimately, the decision depends on personal preferences, financial situation, and long-term goals,” Leckie says.