A large property, which is split into units grouped together to facilitate a sale, is a condominium. How is this different from a typical property? A large part of the distinction is out of the type of ownership. In the case of an apartment, the unit's owner is not only the apartment but also the right to own the land where the building is constructed. For condos, the ownership of the unit is different. A condominium is located inside the community or residential building; however, the property is managed privately by the landlord or the individual who owns the unit in the building.
The landlord has no control over the operation of the building itself or the plot of land on which the property is located. The homeowners association could nevertheless come together to assist in property management. It is also known as the management of the condominium. It comprises owners who come together to supervise the maintenance of lawns, etc. To receive these services, condo owners must pay a specific amount.
How a Condominium Works
The air space part of a property in an apartment complex is one definition of a condo. According to this description, the title of the owner of a condo on the property doesn't include any of the walls that separate their unit from the other units or the property's common areas. The floor, ceiling, stairwells, sidewalks, and exterior spaces belong to the same common owner of the condominium.
A common form of a condo is a residential highrise that houses a variety of families. But, the concept isn't limited to highrise structures, nor is it only limited to residential property. Townhouses for residential use are often constructed as condominiums. The concept can also apply to commercial properties, like office condominiums.
What Are The Reasons To Buy A Condo?
In most condo developments, you simply need to manage the interior. The rest is taken care of by a professional management firm. There's no grass to trim, flowers to tend to, or driveways that need snow cleared. This is particularly beneficial for older homeowners who travel frequently or don't wish to be occupied with maintenance. Another crucial aspect is the cost. Historically, Condos have been less expensive than single-family homes, and the trend continues today. According to Black Knight data, condos were gaining value at a slower rate than single-family homes in the year 2020, and they were sold for about 17 percent less.
Condos can be less expensive in terms of taxes: A smaller area means a smaller amount of tax from the county. Additionally, single-family homes rarely offer a sense of community, such as communal spaces, events, amenities, and more. It's much easier to leave the adventure of traveling or living in another region with the comfort of knowing that when you close the door, the property will be handled. This is especially a benefit for single homeowners or empty nesters.
Difference Between a Condo and a House
If you reside in a condominium, it's your residence, but it's not a home. It's a significant distinction, especially when it comes to maintaining. Think about if you had an unattached single-family home and the roof required to be replaced. As a homeowner, that cost would be completed upon your own shoulders. If you were a homeowner of a condo, the cost would likely be shared among other community owners. Additionally, a part of it may be financed through the homeowner's association's reserve funds.
Sharing expenses can be beneficial; however, it's crucial to remember that condo owners are often required to comply with additional rules and limitations. For instance, there may be aesthetic rules to follow, like a rule to use identical windows to those of every other home. In essence, you may not be in complete control of the choices regarding your apartment, but when you own a house, you'll have more freedom.
Services and Amenities
Interior Maintenance:
Owners of condos share in the costs of maintaining common spaces like parking structures and storage spaces, games rooms, laundry areas, gyms hallways, saunas, along with mechanical systems such as electricity, heating, cooling plumbing, gas along with elevator repairs. If staff is present regularly to keep the common areas clean, its costs are included.
Exterior Maintenance:
Condo owners are also responsible for the costs of common areas, such as fences and walls, gates, landscaping, pools, and window cleaning. They also share the costs of winter, such as the removal of snow, winterizing, and cleaning gutters. The costs are also covered if a gardening team frequently comes to look after the landscaping.
Security:
It could be anything from cameras at the entry point to full-time security guards on the property. If guests have to be monitored by the building, this security system will be covered by the condo's charges.
