Apartment building vs condominium

A condo and an apartment are two terms that are often used interchangeably with one another, when in fact, there are some pretty big differences between the two, one of which has to do with ownership of the property:

• Apartment: A unit you rent in a building owned by a landlord or property management company.

• Condominium (condo): A form of shared ownership where you own a unit in a condominium corporation (called strata in B.C.) and have partial ownership of common areas. You can live in it, rent it out or sell it.

So, which is better? It depends on flexibility v.s equity, fees, rules, location and home insurance needs.

Quick comparison table: condo vs. apartment

Here's what you should know about the two:

Costs and fees you’ll actually pay

Let’s now shift gears and give you a closer look at the differences in costs and fees associated with condos and apartments:

Condominium unit owners

As a condo owner, you own your individual condo unit within the condo complex and share ownership of any common areas and shared amenities, like swimming pools, fitness centres, tennis courts, outdoor cooking space and any other condo amenities on the property. Monthly condo fees include:

• Maintenance fees for shared spaces (pools, gyms, outdoor spaces, party rooms, elevators, hallways, foyer, parking lot, laundry facilities).

• Building operations.

• Reserve/contingency fund for major repairs or improvements.

• Property taxes and utilities.

Condo insurance

Condo owners pay insurance that protects their belongings, personal liabilities and additional living expenses. It can also cover loss assessments and deductible assessments, which are costs passed onto condominium owners if the condo corporation’s insurance policy doesn’t fully cover damages.

Special assessments: These can occur unexpectedly. For example, if a storm causes $50,000 in damage to the condo building and this exceeds the condo building insurance, owners may need to cover their share (unless they have insurance).

Apartment buildings

Apartment buildings are typically owned by a single entity, whether it be a specific corporation or real estate management company. So, rather than having owners for individual units, the apartments on the property are rented out to tenants. Renting an apartment requires:

• A security/damage deposit.

• Monthly rent. According to TenantPay, the average rent costs as of 2025 in Canada were $2,100 a month.

• Utilities, parking and storage (may be included).

Tenant insurance

Renters should purchase tenant insurance to protect their personal belongings and interests against liabilities. Landlord/property management insurance only covers the apartment building and unit, not the renters’ interests. Unsure what insurance coverage you need for your condo or rental? Speak with a BrokerLink advisor for a free review and quote.

Rules, bylaws and rent controls

Condos accounted for 39.9% of occupied homes in Canadian CMAs’ main downtown areas in 2021, while investors rented over half of these condos. Condo complexes and condo communities are managed by a homeowners’ association (HOA) or condo association. Many condo associations are composed of unit owners and are responsible for establishing building rules for the entire building, managing common areas and collecting fees for exterior and interior maintenance issues and any necessary repairs, insurance and the reserve fund through monthly payments that are also referred to as strata fees or condo fees.

Condo bylaws can cover anything from whether or not pets are allowed (and how many per condo unit), renovations, short-term rentals, noise and common area usage. Failing to comply with condo bylaws can lead to fines and other consequences. In Ontario, the Condominium Authority of Ontario governs condo rules, while in B.C., the Strata Property Act governs provincial condo rules.

Apartment buildings

Apartment complexes tend to be managed by a property management company or a landlord. These companies are in charge of managing apartment amenities, rentals, tenant concerns and collecting rent each month. However, provincial tenancy laws will dictate deposits, notice periods, evictions and rental increase limits.

Maintenance and repairs

Maintenance costs and repairs also differ between condos and apartments:

Condos

While the condo fees will help pay for any repairs or maintenance that needs to be done to the common areas (building roof, elevators, lobby and amenities), owners are responsible for interior maintenance and repairs within their unit, such as plumbing fixtures, appliances, flooring and personal renovations.

Apartments

Landlord and property managers will handle most repairs, while apartment renters are expected to maintain cleanliness and cover any damages they cause to the unit. Because management companies oversee entire complexes, response times for repairs can vary.

Insurance cheat sheet

Because condos and apartments are inherently different, how they’re insured is also unique:

Condo unit insurance coverage

Condo insurance is similar to a standard home insurance policy. It covers a condo owner’s personal property, unit improvements, liabilities and additional living expenses. It can also protect owners from loss assessment and deductible assessments, although these are optional add-ons that must be requested by the owner when purchasing coverage.

Pro tip: Before buying a condo, ask for proof of the corporation’s master policy, deductibles and standard unit definition.

Condo landlord insurance (if you rent your condo out)

If you rent your apartment to someone else, you will need to purchase a separate landlord policy. This covers rental property income, landlord liability and appliances. Remember, you’ll need to verify local condo bylaws to confirm whether rental units are allowed and if so, what the minimum lease agreement term is to ensure you comply.

Tenant insurance (renters insurance)

If you live in a rented apartment or condo rental unit, having renters’ insurance is highly recommended. A landlord’s insurance coverage does not extend to you and only protects the landlord’s interests. With a renters insurance policy, your personal belongings will be protected, you’ll have liability coverage in the event someone is injured or suffers property damage in your rental, and it includes additional living expenses in case you’re forced to move out of your rental apartment following an insured event.

Pros and cons of a condo and an apartment

Living in a condo vs. an apartment comes with pros and cons that you should be aware of before going the ownership route:

Condo pros

Here are the upsides of living in a condo:

• Builds equity for condo owners: Build equity over time. Should you ever decide to sell your condo units, you’ll likely make money and be in a good position to continue investing in the real estate market.

• Personalization: Condo owners can conduct upgrades or renovations to their units.

• Access to shared spaces: Access to shared amenities that are often maintained by the condo association, so you don’t have to deal with maintenance costs or repairs yourself.

• More control over the building: If you’re a member of your HOA, you’ll have more of a say over where your condo fees go.

• Long-term living: Condo buildings are ideal for those looking to live in one spot without the need to move frequently.

Condo cons

On the other hand, choosing to reside in a condo comes with the following downsides:

• Initial investment and ongoing fees: You need to put a down payment on the condo and pay closing costs to a real estate agent. Monthly homeowners’ association fees can also be expensive and are in addition to your mortgage payments.

• Special assessments: You’ll need to pay out of pocket for unexpected issues if the HOA insurance maximum is reached.

• Rules and regulations: Condo owners must follow HOA rules and regulations. This could restrict certain renovations to your unit and uses of the property.

• Rental restrictions: Some condo associations will limit the ability of owners to rent out their condos to others.

Apartment pros

Here's what you should know about the pros of living in an apartment:

• Easy to move in and out: Offers renters more flexibility when it comes to moving in and out at the end of their lease term.

• Short-term residency options: Some apartments allow residents to stay for short-term agreements, like six months or less.

• Fewer initial payments: Renting typically only requires a security deposit and rent.

• Landlord is responsible: Your apartment’s landlord or the property management business is responsible for handling any maintenance costs or repairs.

Apartment cons

The cons of living in an apartment include:

• No ownership of the apartment: Rent payments do not help tenants build equity and it does not give them any return on the investment.

• Limited personalization of the apartment: Not able to make any significant modifications or renovations to their rental apartment.

• Lease terms: Your landlord can increase your monthly rent payments at the end of the term if they want to (within provincial limits).

• Less of a community: Apartment communities tend to have a higher tenant turnover rate.

Who each option fits

Let's compare and contrast the two. See which option may be best for you based on your lifestyle:

Before buying a condo in Canada (checklist)

To buy a condo in Canada, you’ll need to review your finances and current real estate market conditions, among completing other tasks. Here’s a checklist of what you need to do:

1. Status certificate/strata documents: Get a copy of the condo association’s bylaws, rules and regulations. Check for any concerns that may impact your daily lifestyle. In Ontario, this is called a status certificate.

2. Financial review: Examine the reserve/contingency funds, special assessments and recent financial documents to ensure the building has a healthy budget.

3. Insurance: Review the corporation’s master policy, deductible and coverage limits. Send building documents to your broker to review.

4. Unit details: Confirm parking, lockers, common areas and standard unit definition.

5. Rules and bylaws: Check pet policies, smoking rules, short-term rental restrictions, noise restrictions and renovation limits.

6. Mortgage: Get pre-approved, budget closing costs and plan for monthly fees.

Contact BrokerLink today

Deciding between renting an apartment and owning a condo comes down to flexibility vs. ownership. Regardless of the route you choose, ensure your investment and belongings are protected. Get a free insurance quote and have your documents reviewed by a BrokerLink advisor today!

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