Understanding the difference between a condominium vs apartment is important for buyers and renters. Type “condo meaning in Canada” into your favourite search engine, and you’ll find that the main difference between the two is that you can buy a condo, whereas an apartment is strictly available for rent. However, there is more to it than that. If you are asking yourself, “What’s the difference between an apartment and a condo?”
What is a Condominium vs Apartment: Key Differences
Condo Ownership Structure
Condos are multi-unit dwellings that can be found in high-rise, low-rise, medium-rise, and townhouse designs and configurations. The individual units are purchased either through the builder for pre-construction condos or through the current owner for resale condos. Condo complexes are managed by a condo corporation, which collects monthly condo fees from unit owners.
Apartment Rental Structure
Individual apartment units are only available for rent. The building is often owned by a corporation that leases out the units to tenants and hires a property management company to collect monthly rent and maintain the building. It can sometimes be a little confusing because many condo units purchased solely for investment purposes are made available for rent by their owners. So, although the condo is owned, the owner can choose to rent it out on Airbnb or similar platforms.
Amenities in a Condominium vs Apartment
Condos and apartments also differ in terms of their amenities and services. Condos provide a broader range of amenities like fitness centres, swimming pools, rooftop terraces, and concierge services. These amenities are shared among condo owners and are maintained through condo fees.
On the other hand, apartments usually have more limited amenities, which can vary depending on the building and management company. While some flats may offer amenities like laundry facilities or a basic gym, they generally don’t provide the same luxury or variety of add-ons as condos.
Things to Think About in the Condominium vs Apartment Debate
Maintenance Responsibilities
A big difference when renting a condo vs apartment is the maintenance. If you rent a condo and something inside the unit, like the dishwasher or air conditioning breaks down, you’ll have to rely on the owner to fix it. This could take longer if the owner is slow to respond or needs time to arrange repairs. In an apartment, the property management company handles all maintenance, both inside the unit and in the common areas. If there’s an issue such as a plumbing leak or a problem with the apartment’s HVAC, you simply call or message the property manager’s office, and they’ll usually send someone very quickly. This makes apartment living more hassle-free for renters who don’t want to worry about coordinating repairs.
Customization Options
When it comes to personalizing your space, renting a condominium vs apartment affects your ability to make changes. Condo owners typically have more freedom to alter their own units, but as a renter of a condo, you will likely NOT be allowed to make any modifications to the space at all. In addition, all items within the condo will likely be inventoried, and before you depart, the owner will check if any of the items are missing or broken. If they are, the cost of replacing these items will be taken from your deposit.
Similarly, in most apartments, management companies allow only essential modifications such as painting walls, installing new light fixtures, hanging pictures and rearranging furniture. If you’re comparing condominium vs apartment rentals and want a space that feels more like home – depending on the owner and how long you lease for – renting a condo could offer more opportunities to personalize the unit.
Legal and Regulatory Differences
The legal framework surrounding a condominium vs apartment affects condo owners but can also affect your experience as a condo renter.
Condo buildings are governed by condo or strata rules, established by bylaws and regulations that govern the community within the building and that are enforced by the strata corporation. For a condo owner, the breakdown is as follows:
- Bylaws
These set out the rights and obligations of condo owners and can include restrictions on age, pets, and whether short-term rentals of their condos are allowed or not. Bylaws can also specify window coverings and require written permission for changes to the strata lot, in the case of a duplex, triples or condo “townhouse” complex. - Rules
Condo rules are designed to promote the safety and welfare of owners and their property within the condo complex. These rules govern how common property and assets can be used, how many visitors are allowed per condo, and what amenities visitors can or can’t use. They may also include restrictions on parking. For example, visitors may not be allowed to use the condo’s fitness centre without being accompanied by the condo owner, and they may also not be allowed to use the fitness facility more than once a month. In this way, the community keeps outsiders from utilizing amenities owners pay for. - Fees
Owners pay regular fees to cover maintenance costs, which often include utilities, building insurance, landscaping, and cleaning.
You’ll be subject to the same rules if the condo allows short-term rentals. If you break the rules, you can face a number of consequences, including:
- Warnings and fines
The condo board may issue a warning and fine the renter for breaking the rules. Condo boards can also charge back costs to an owner for damage or legal fees incurred while trying to enforce a rule. - Privilege suspension
The condo board may suspend certain privileges, such as access to shared amenities. - Legal action
The condo board may take legal action to enforce compliance.
If you rent an apartment, you’re generally subject to more standard landlord-tenant laws that offer clear protections and are applied uniformly to all tenants. Renters who prefer fewer restrictions may find that in the condominium vs apartment debate, apartments tend to have more flexible and consistent rules. In condos, the varying regulations imposed by their condo boards can create a more regulated living environment compared to the relative freedom found in apartment rentals.
Insurance Responsibilities
In a condominium vs apartment rental situation, the renter’s insurance needs are quite similar, but how the building is insured can affect you. Condo renters usually need renters’ insurance to cover their belongings and personal liability, just like apartment renters. However, because condo owners must carry homeowners’ insurance, which covers the structure of the building and common areas, condo renters might have added peace of mind knowing the condo unit and the building itself is well-insured.
Tax Implications and Deductions
In a condominium vs apartment rental situation, tax laws don’t directly affect renters, but they can influence the landlord’s financial decisions. Condo owners, for instance, may be able to deduct mortgage interest, property taxes, and other expenses, giving them more flexibility in setting rent compared to apartment owners. This could result in more competitive pricing for condo rentals. Some regions offer renter’s tax credits or rebates, so it’s worth checking if you’re eligible for any local benefits to reduce your tax burden as a renter.
Eviction and Foreclosure Risks
One significant condominium vs apartment difference that condo renters should be aware of is the risk of eviction or foreclosure. While renters can be evicted if they fail to pay rent or violate the lease terms, condo renters face an additional risk. If the condo owner falls behind on mortgage payments or condo fees, the unit could be foreclosed on. This would force the renter to move, even if they’ve done nothing wrong.
This risk is much lower in an apartment because large management companies typically have more stable finances, meaning renters are less likely to be affected by the building’s financial issues. In a condominium vs apartment rental scenario, the owner’s financial stability can significantly impact the renter’s security.
What is the Difference Between the Rent for a Condominium vs Apartment?
There are several differences between renting a condominium vs apartment. First, in a condo, while your landlord might be an individual who owns the unit since investors can own and rent out multiple units in a condo or buy entire buildings to rent out in Canada, you could be dealing with a corporate entity instead. When renting an apartment, you rent from a property management company.
Second, with a condo, you might be dealing directly with the landlord for repairs and to pay your rent. In contrast, with an apartment, there is usually a superintendent who handles repairs and rent collection.
Apartments typically offer more flexibility regarding lease agreements, allowing tenants to choose month-to-month or short-term leases and providing the freedom to relocate or change living arrangements with relative ease. This flexibility suits individuals who may have temporary housing needs or prefer the ability to move more frequently. Condos often come with stricter regulations set by homeowners’ associations and may require longer lease commitments, limiting the flexibility for residents.
Are There Different Rules for a Condominium vs Apartment?
If you are a renter, that is a critical question. When renting an apartment, the property management company sets up and enforces the rules. The same restrictions apply to every tenant and every unit in the building.
If you are renting a condo, several different factors are at play. First, there will be rules set by the condo board that can apply not only to the unit you rent but to the way you treat the entire complex. Second, you also have to abide by the rules laid down by the landlord. These rules can range from no pets to no smoking, from no nails in the walls to no painting.
As a condo owner who wishes to set the rules, you must be aware of your region’s landlord and tenant act to ensure you are not breaking any laws. Also, if you intend to purchase a condo to rent the unit, always check with the condo board first. Many buildings restrict the number of units that can be rented.
Comparing Costs for a Condominium vs Apartment
For apartment rentals, your rent level remains the same based on the length of your lease. Although some apartments offer month-to-month or short-term leases, there is usually an agreement of at least a year’s length or more. Once the lease ends, the landlord can raise the rent as long as it remains within the Landlord and Tenant Act rules for the province or territory you live in. Prices will vary based on the area, the demand, and the current market rates. In some cases, your rent will include utilities, while in others, it won’t.
When you rent a condo, you usually have the same fixed monthly rental fees, but special arrangements can be made if it is agreeable to you and the owner/landlord. Your owner/landlord sets the monthly rent, often including their HOA fees and utilities.
In most cases, you will pay more in rent for a condo than an apartment when looking at the same general location. In many cities, buying a condo is often cheaper than renting one long-term. That’s because condos can offer not only the opportunity for ownership but also the potential for property value appreciation and a rental income stream.
When comparing the costs of buying a condominium vs apartment, several deeper financial factors come into play. While condos can offer long-term benefits such as building equity and potential property appreciation, ownership also comes with hidden expenses like property taxes, homeowners’ insurance, and fluctuating condo fees, which can be unpredictable and rise over time. Special assessments, such as unexpected fees charged by the condo association for building repairs or improvements, can also add to the total cost of owning a condo.
These are additional financial responsibilities that renters in apartments generally avoid. The condominium vs apartment difference becomes clearer when considering the unpredictable costs associated with ownership. Apartment renters typically face more stable and predictable monthly expenses.
Apartments and condos are distinct housing options with their own set of differences. Condos offer individual ownership, shared ownership of common areas, and the potential for property value appreciation, making them appealing to those seeking long-term investment potential and more customization options. They often provide a broader range of amenities and services, albeit at a cost.
On the other hand, while apartments provide more predictable and flexible lease terms and conditions, they may limit unit customization options and lack the same luxury and variety of amenities as condos.
