Condo vs. Apartment vs. Townhouse: What Are the Differences and What’s Right for You?

ondos, apartments, and townhouses might seem interchangeable at first glance, but the differences are crucial when deciding which one is right for you.

Whether you’re drawn to the low-maintenance lifestyle of a condo, the rental flexibility of an apartment, or the houselike perks of a townhouse, understanding what sets them apart can help you make the smartest choice for your needs.

Let’s look into the details of each so you can narrow down your options and feel confident about your next move.

What is a condo?

Short for “condominium,” a condo is a private residence within a larger building or complex.

The first condo in the United States was built in Salt Lake City in 1960, according to Matthew Gordon Lasner, author of “High Life: Condo Living in the Suburban Century.” Since then, this residence style has truly taken off.

Often a good option for first-time buyers or those looking to downsize, condos might look like a lot of other types of real estate you may have heard of—like apartments or co-ops—but condos have their own distinct features, rules, pros, and cons.

Condominium rules and regulations

Since a condo is part of a larger residential structure (although “detached condominiums” also exist), condo residents typically share certain common areas and amenities with their neighbors.

This means you and your neighbors might park in a common parking lot or garage. You might also use the same rec room or roof deck, or bump into one another at the condo complex’s swimming pool or gym.

Furthermore, all condo members enjoy these shared areas and amenities without the need to maintain them on their own. Instead, condo owners pay dues to a board (typically made up of elected condominium owners) that then handles the hiring of landscapers, pool cleaners, and other professionals for anything that must be maintained or fixed.

How much is the condo fee per month?

Average condo fees range from around $100 to $700 a month. However, these fees can go much higher based on the amenities they cover. If the condo complex has high-end shared features such as a swimming pool, gym, and spa, fees can be several thousand dollars per month.

“Condo fees are your percentage share of the costs to run the building as a whole,” explains Janice Pynn, president of Simerra Property Management.

Additionally, fees go into reserve funds for major repairs as well as to paying the insurance fees carried by the landlord for the entire property. That’s why there has been such an increase in dues over the past few years in places like Florida and California, which have been hit by major climate events.

Something condo fees do not cover is property tax. If you find a condo you like, be sure to ask your real estate agent about the property taxes on a condo.

Should I buy a condo with a special assessment?

Special assessments might arise in addition to your monthly condo fees. Sometimes, something big (e.g., a roof or an elevator) breaks, and there aren’t enough reserve funds to cover it. In that case, the condo owners will have to pay an extra fee for these additional expenses, typically tacked on to the usual monthly condo fees in small amounts until the assessment is paid off.

In addition to collecting dues, a condo board also enforces rules and regulations that owners agree to abide by when they purchase their condominiums. The board can regulate everything from the size and number of pets you’re allowed to the ages of the people living in your unit. Retirement condo communities, for example, can legally require that all long-term residents be over the age of 55.

So if you’re considering buying a condo, you should study the condominium association rules (called covenants, conditions, and restrictions, or CC&Rs) and fees.

What is the difference between a condo and an apartment?

While condominiums and apartments might look the same, the key difference concerns who owns the property. Condos are homes you can buy, own, and sell when you wish; apartments are places you can rent, but do not own.

Another key difference between a condo and an apartment is maintenance and repairs. With a rental, the apartment’s owner—often called a landlord—is typically responsible for any maintenance and repairs inside and outside the unit.

Condo owners, in contrast, are responsible for any repairs or maintenance inside their units.

What is the difference between a condo and a townhouse?

A townhouse is a multistory home that shares one or more walls with neighboring units but has its own entrance and often a small yard or outdoor space.

Unlike condos, townhouses typically include ownership of the land the property sits on. This means you’ll have more control over your property, but it also comes with additional responsibilities, like exterior maintenance.

Townhouses are a popular choice for those who want the feel of a single-family home but at a potentially more affordable price range, often located in vibrant urban or suburban neighborhoods.

Condo vs. apartment: Which is better for you?

Whether you should buy a condo or rent an apartment can be a tough decision since each scenario has distinct pros and cons. For instance, renting an apartment is great if you’re unsure how long you’ll stay in the area, or don’t want the hassles of maintaining your own residence.

Buying a condo, however, makes more sense if you plan to stay in an area for at least a few years and are willing to maintain your property yourself (either by paying repair professionals or by doing the work yourself).

Here are some other factors to consider.

• Condo cost: Condos are meant to be purchased. Even if you get a mortgage, condos will typically require a down payment (usually 3.5% to 20% of the price of the property). If you lack a chunk of money to offer upfront, then you’ll probably have to rent, which typically requires lower upfront costs (like first and last month’s rent and one month’s security deposit). That said, depending on the inventory available in a particular area, the monthly costs of renting versus owning could be similar. As such, it’s worth comparing these two options with an online rent vs. buy calculator.

• Home equity: Probably the main advantage of being a condo owner over a renter is that condo owners gain equity in their real estate over time. As they slowly pay off their mortgage and owe less on their property, they own more of their condo free and clear monthly. Once the mortgage is fully paid off (which can take up to 30 years), they own the property in full. This starkly contrasts with renting, where you pay your landlord rent every month but do not gain equity.

• Freedom: Condo owners can make changes to the property, from painting the walls to renovating the kitchen. Meanwhile, renters cannot make permanent changes without their landlord’s permission.

• Housing quality: Since homeowners care more about their property than renters, condos are better built and maintained than rentals.

Townhouse vs. condo: Which is better for you?

When it comes to choosing between a condo and a townhouse, it all comes down to what lifestyle you have in mind.

Choose a condo if: You value convenience, don’t want to deal with exterior maintenance, and love the idea of amenities like pools and gyms at your fingertips. Condos are also great for city dwellers or anyone seeking a low-maintenance, community-oriented lifestyle.
Choose a townhouse if: You want more privacy, space, and freedom to customize your home. Townhouses are ideal for families, pet owners, or anyone who craves a little outdoor space without committing to a full single-family home.

How to buy a condo

We totally get why people buy condos: They’re cheaper and require less maintenance than a traditional house (no mowing the lawn). Plus, they’re often stacked with cool common amenities from pools to gyms. What’s not to love? Yet, while condo living might seem carefree, buying one is not necessarily a simple task.

Here’s how to buy a condo, how it differs from buying a house, and a few insider tips to pave the way to ownership.

Consider your unit’s surroundings

While the condo unit itself is a key consideration, it’s also important to carefully check out the environment around it—particularly when it comes to noise. Remember, you’ll be sharing walls with your neighbors and perhaps even ceilings and floors.

“I always suggest my buyers book a showing during typically ‘louder’ times of the day, such as dinnertime when kids are home, to see how well the walls actually dampen the noise,” says David Nelson with the Imperial Home Team in Minneapolis.

He also recommends asking a few of the neighbors about general property noise, such as how loud the traffic and surrounding neighborhood are, and if they can hear their neighbors through the walls.

The unit you choose can play a large role as well.

“End units share fewer walls than those in the middle, which can lessen neighbor noise,” says Nelson. Of course, that’s also one of the reasons why end and top-floor units are more coveted—and often pricier—but if you’re sensitive to noise, that could be money well spent.

Check out the condo board and association

When you buy a condo, you’re buying into the entire community—including its rules on everything from when and where it’s OK to let your dogs off the leash to whether RVs are allowed in your driveway. Most states will have a designated rescission period to peruse relevant documents. During this period, you’ll want to carefully read through the CC&Rs, as well as the penalties for not following them.

“When a buyer agrees to the association documents, he or she is automatically bound to the condo board’s rules,” says Nelson. These typically entail parking space allowances, regulations related to pets, and homeowner responsibilities for repairs and maintenance.

“If there is something in the association bylaws that you as a buyer don’t agree with, and it is still within the rescission period, you can back out of the home purchase and usually get a full refund of any earnest money,” says Nelson.

Prospective condo buyers should also do their due diligence on the condo association’s finances because this will affect your odds of getting a loan (more on that next).

Secure condo financing

In some cases, it can be trickier to secure a mortgage for a condo than a traditional home because the condo development’s financial health depends on multiple owners paying their bills.

Your mortgage lender is apt to conduct a thorough review of the condo complex as a whole, including documents relating to the overall health of the building and the condo association. The good news is that you can consider this an extra layer of due diligence to protect your investment.