A condominium commonly known as a condo has the same physical attributes of an apartment but the condo units are owned by an individual or a family. The condo homeowner association takes care of the property management. The building may have many units and is part of a large building. The areas such as garage, gyms, yards, etc. are common areas which are shared by the condo user but the maintenance and upkeep of it are done by the owners. Condos can be freestanding houses, triplexes, duplexes, low-rise building or townhouses. Some condos have better amenities and you can experience a better lifestyle and unmatched security.
Though the owners need not take care of the management of the property, they have to pay the condo board maintenance fees to do the upkeep. A condo board is elected by the owners and are typically condo owners themselves. Any maintenance activity that is not within the condo comes under the purview of the board or usually called the Home Owner’s association or the HOA.
Types of Condos:
There are two basic categories of condos
Leasehold: A leasehold condominium is built of a land that is leased by the developer. The developer is only given permission to build it and is not the land-owner. Rent is paid by the owners of the condo to the landowner and is usually part of the maintenance fee paid by the residents.
Freehold: The condos that are not leasehold are called freehold and the owners of the condo are the owners of the unit and there is no lease to be paid. Freehold condos are further divided into:
Standard Condo: These are traditional condos which include a drywall.
Phase Condo: These are traditional condo types that are built in many stages of construction with elements added at every stage over time. It has many units all built in a single complex. The advantage of owning this type of condo is that the owner can sell it whenever needed and not wait for the project to complete.
Vacant Land Condos: These are land wherein a condo or any other property can be developed after registration.
Common Element Condos: These are a type of condo where common elements are mainly considered and not the units.
Difference between Condos and Apartments
People often get confused between condos and apartments, here are a few differences
Ownership: The individual units in a condo have a different owner and that gives you more flexibility in terms of rules and regulations inside your house. An HOA is formed to set rules for common elements. Apartments, on the other hand, has only 1 owner and the rules are the same for everyone.
Maintenance: The maintenance of the unit in a condo has to be done by the owner which can be a major headache, whereas in apartments there will be maintenance staff to fix issues in your house.
Larger Living Area: Apartments are built having the same plan whereas a condo can be upgraded to your needs.
A condo is ideal for someone who wants to own real-estate without the hassle of maintenance like mowing the lawn, etc. Young adults or retirees who like to own a property close to the city but are unable to afford single homes are people who prefer condos.