What's the difference between a condo and an apartment? — An expert guide
As mentioned earlier, there are a number of key differences between condos and apartments. Taking the time to familiarize yourself with some of the major differences between the two living spaces will help you make an informed decision when it comes time to rent or buy.
Let's learn the answer to the question, “what is the difference between apartments and condo units?”:
What is an apartment?
An apartment is a living space that is generally located in a highrise building (often referred to as an apartment building). Apartments located in apartment buildings are owned by property management companies, not individual people.
You can also rent an apartment located in someone else's home (these types of apartments are usually found in basements or lofts). These apartments are usually owned by individual people, not property management companies.
In order to live in an apartment, you need to follow the rules laid out by the landlord and make monthly rental payments. Failing to make your rental payments on time can jeopardize your opportunity to live in the apartment.
Should you choose to rent an apartment, you may want to invest in renters insurance. Renters insurance is a unique type of insurance that financially protects renters from a variety of unforeseen risks.
Renter's insurance isn't legally required in Canada, but your landlord can make it a stipulation of your lease. That being said, renters insurance is well worth the investment, even if your landlord doesn't ask you to obtain a policy.
Check out this page if you want to learn more about renters insurance.
What is a condo?
A condo is a multi-unit dwelling property that consists of multiple living spaces (commonly referred to as condo units). You can either purchase a condo unit directly from the builder or rent it from the owner (this is a major apartment and condo difference that you should be aware of before making a decision).
If you choose to buy a condo unit directly from the buyer, then you will be responsible for following the rules laid out by the condo board. In contrast, if you choose to rent a condo unit from the owner, you will have to follow the rules set by the condo board and the landlord (the condo owner).
Should you choose to rent a condo, you'll want to invest in condo renters insurance. Condo renters insurance is a niche type of renters insurance that financially protects policyholders that live in a rented condo unit.
On the other hand, if you choose to buy a condo unit, you'll most likely need to invest in condo insurance. Condo insurance is another invaluable type of coverage that financially protects condo owners, their units and their belongings.
Learn more about condo insurance in Canada.
Now that you're familiar with the basic differences between a condo and an apartment, it's time to figure out which living space is right for you.
Condominium vs apartment — Which one is right for you?
Diving headfirst into a big decision rarely pays off in the long run, especially when it comes to important choices like finding a living space.
If you're still on the fence about the apartment vs condo debate, we're here to help. We've put together lists of the pros and cons of each option.
Let's take a look:
Pros and cons of renting an apartment
Some of the pros of renting an apartment include the following:
- Minimal maintenance
- Freedom and mobility
- Can rent for short and long periods of time
The cons of renting an apartment include the following:
- Lack of privacy
- Unstable fluctuations in rent prices
- Limitations on renovations
Pros and cons of renting a condo
Some of the pros of renting a condo unit include the following:
- Your landlord (the condo owner) is more financially and emotionally invested in the living space than a property management company
- Access to quality amenities
- Most condo units come with high-end appliances and fixtures
- General maintenance tasks are often taken care of by the condo board
The cons of renting a condo unit include the following:
- Your landlord may not have prior professional experience
- Lots of competition
- Condo units can be more expensive to rent than apartments
Getting insurance for your apartment or condo
Whether you choose to rent an apartment or rent/buy a condo, you should do everything that you can to financially protect yourself, the living space and your belongings. The easiest way to do this is by obtaining a renters or condo insurance policy (depending on the living space that you choose).
If you need help finding tenant or condo insurance quotes, you can contact an online insurance brokerage like Surex.
