Condos and apartments are two of the best assets for building management firms. Whether you’re renting or selling, demand for both has always been high.
According to Stayfi’s 2020 compilation of vacation rental statistics, the majority of Gen-Z travelers prefer condos for rental. Last year was also a milestone for apartment demand, according to The Real Deal.
You can find countless articles about living in them. That’s why our focus for today is the building management side of things.
How are condos and apartments different for a property manager?
Building management differences
In terms of attributes, they’re actually very similar. The main difference actually comes from ownership.
Building management for apartments usually goes for the entire building instead of per apartment. Everyone looking to rent or buy an apartment has to speak to the same entity. It’s why apartment management is a lot more centralized than condo management.
Speaking of condo management, condos are more “individualistic” than apartments. Homeowner Associations typically manage condos. This management centers around common area maintenance instead of the entire space.
In other words, building management often includes complete ownership of the apartment buildings. For condos, building management is mostly that: management instead of ownership.
For condos, rent is quite different from apartments. The HoA manages common amenities, like concierges and general security. Homeowners and tenants pay fees every month for these benefits. However, utilities are mostly every tenant’s responsibility.
For apartments, building management companies are responsible for all bills and maintenance. Therefore, the company will charge for security, cleaning, and most utilities. That’s because the same public services go into the entire building instead of every apartment individually.
Maintenance for condos is the responsibility of every owner. If the owner fails to pay his utility bills, they can lose the corresponding service. However, all other condos won’t face any consequence for their own utilities. HoAs fees are solely for amenities benefiting all owners.
On the other hand, building management for apartments is more involved with maintenance. That’s because everything outside every apartment space is basically “common areas.”
The condo’s HoA is in charge of creating community rules for everyone. That’s often a communal agreement on what’s acceptable within the areas. That said, individual owners can create their own rules within the condo.
Apartment rules begin and end with the owning building management firm. The building’s owner can decide what’s allowed and what isn’t, even within the apartments.