Renting a Condo Vs. an Apartment in NYC

When looking for a place to live in NYC, you will have to think long and hard about several options, such as where in the city to live, the commute time to your current job, and maybe even how to rent your apartment in NYC.

The last thing you want to be faced with when looking for a new place to live in NYC is the confusing question of condo vs. apartment.

What is the definition of a condo or apartment, and what are the differences, if any?

Renting a Condo Vs. an Apartment

• A condominium is a fundamental property often manifested as an apartment unit in a building. Condos are usually individually owned by different owners. These owners can choose to let out their condos as rental properties.
• An apartment is a rental unit in an entire building owned by one landlord.
• Some advantages of living in a condo include modern finishes, better amenities, and having a more individual relationship with your landlord.
• Possible disadvantages of living in a condo may include dealing with an inexperienced landlord, extra fees, and delayed fixes to the unit.
• Some potential advantages of living in an apartment are the tenant rights that come with having a professional landlord, streamlined application and rent payment procedure, and lease stability.
• The cons of living in an apartment building may include identical finishes in every unit. This landlord refuses to update appliances and branches that tend to be on the smaller side.

What Is a Condo?

A condominium, or a condo, is defined as a type of living space resembling an apartment. Still, a significant difference is that a condo is an independently sold real estate.

Each condominium unit is separately owned, as each owner receives a legal deed from the purchased team.

Interestingly, this real estate is essentially air rights as the condominium unit is air space within a real property.

Each owner is also allowed the right to sell, mortgage, etc., that specific unit while sharing common grounds, trash disposal, pools, etc., along with tenants of the other condos.

Suppose you are renting a condo in New York. In that case, the owner has complete control to refuse or accept any application that comes their way, which makes the tenant/owner relationship a little more personal than that of living in an apartment.

While the landlord isn't usually onsite like a Management Company, they are very responsive and may even reside in a different unit within the same building.

Read on: What's the Difference Between a Co-op and a Condo in NYC?

What is an Apartment?

An apartment is a rentable residential unit part of one, or sometimes several, residential buildings.

Usually, only one owner or management company is responsible for all the maintenance and care of the units and grounds.

The property manager can typically be found onsite in the leasing or management office and can help answer any questions regarding the lease, space, etc.

Read on: What's an NYC Apartment Complex?

How Does an Apartment Compare with a Condo?

While you may think an apartment differs significantly from a condominium, they can be very similar.

They can offer amenities like manicured green spaces, shared walls, and a swimming pool or gym.

However, as much as they are similar, the one major factor is how they differ in ownership.

The Pros and Cons of Living in a Condo

A condo is a combination of an apartment and a house.

It shares similarities with apartment living in that most renters will share a wall and live adjacent to other tenants.

If your apartment building is a high rise, you may have a family living above you, below you, or both.

Condominiums are typically managed by the Homeowner's Association or the HOA, yet a separate individual owns each unit.

You can purchase or rent a condo as a piece of real estate.

If you choose to rent, it is worth noting that the property owner will change from condo to condo.

What are the benefits of renting a condo in New York?

Creativity

A different individual usually owns each unit. Therefore, you will likely be living in your own unique space.

It may also afford you the experience of living in a more exclusive building that renters cannot often live in.

Modern finishes

Since the owner has a vested interest in the condo, it is more probable that the unit will have updated appliances and high-end designs and finishes.

These features may include perks such as hardwood floors, granite countertops, stainless steel appliances, backsplash in the kitchen, etc.

Potential Investment

If, down the line, you decide that you want to own a piece of real estate, you may have a chance if the owner of your unit chooses to sell.

It might also be good "practice" living in a condo unit and building for the real thing once you are ready to own.

What are the cons of renting an apartment in New York?

HOA Fees

Most condos will require their tenants to pay monthly HOA fees.

Read the lease carefully to see if you notice terms such as "maintenance fees" or "common charges."

If your lease requires HOA payments, check carefully to see the cost.

The average monthly HOA fees in NYC are approximately $1,500 monthly in addition to rent.

This is usually why condos are considered more expensive than rent, especially in New York.

Since you'll be paying rent to the landlord, you may not have the luxury to pay via an online portal.

Most landlords accept checks, but you always ask them for advice on the best payment method before signing the lease.

Maintenance

If a pipe bursts or something breaks, the response time relies heavily on the owner's schedule.

If they are away on vacation, they may be unable to help you as quickly as you would like.

You may be held responsible for extra maintenance charges when an issue occurs.

Lack of stability

While you may have a chance at owning a piece of property by renting a condo, you can lose your home instantly.

Since generally, the landlord is the owner, if they decide, they can sell their unit, leaving you scrambling to find your next home.

Professionalism

Usually considered the stepping stone to homeownership for novices, that means that yes, you could be a tenant to an inexperienced landlord who has never rented anything before.

Rules and Regulations

Generally, the HOA sets the residential rules, such as removing trash stored outside your door and picking up after your pet.

If you have a pet, check with the condo you would be potentially renting with, as the rules may vary from unit to unit.

The Pros and Cons of Renting an Apartment

Renting an apartment is pretty simple.

Usually, a deposit must be paid upfront, typically one month's worth of payment.

After the deposit has been paid, the renter must make monthly payments based on the lease terms.

Unlike condos, apartment suites cannot usually be purchased.

There is usually one owner/manager, typically a type of corporation, but it can be managed by a management company instead of the property owner directly.

What are the benefits of living in an NYC apartment?

Stability

If you are looking for stability, you may prefer an apartment as it usually cannot be purchased, so you don't have to worry about the owner selling.

Professionalism

A property manager or management company is usually onsite to handle tenant requests, leasing questions, maintenance issues, etc.

This makes asking an urgent question or dropping off rent easy and convenient.

Since there is management on site, there is generally round-the-clock maintenance in case of an emergency, leak, tripped breaker, etc.

Also, maintenance is usually included in the rent if there is a leak or other issue. Work orders are typically requested via the apartment's online portal.

Easy rent payments

Most apartments have a website where monthly payments can easily be made without having to send a check.

Also, you can typically drop your rent check off at the Management/Leasing Office.

Amenities

While apartments generally offer fewer amenities than condos, they may offer some incentives, such as dog parks, swimming pools, tennis courts, laundry rooms, and a gym.

Pets

While many landlords may not allow pets in their apartments, there may be a loophole for tenants looking to beat the system.

In New York City, the pet law includes an exception where if the tenant openly keeps a pet in the building for three months, your landlord finds out or should have, and your landlord decides not to enforce the no-pet law, you get to keep the pet even if there is a no-pet rule in your building.

Even though it may seem like it, this policy isn't in place to inspire mischievous tenants.

Instead, it is in place to help protect the tenant if their landlord decides to evict them over a non-related issue but blames it on them owning a pet even after the landlord may have acknowledged it.

Read on: The Best Places to Live in New York with a Dog.

What are the cons of renting an NYC apartment?

Lack of creativity

If you want originality, you will be disappointed when renting an apartment.

All apartment units in a residential building usually have the same designs, appliances, etc., so you will need to be extra creative for your suite to stand out.

Also, think again if you plan on painting the walls, hanging any heavy items, or doing any permanent decorating.

Outdated appliances

Because of this, there is less chance that you will be renting a modern, updated unit and more of a chance that you may be stuck with outdated appliances.

Unfortunately, if you are stuck with some less-than-appealing appliances, cabinets, tiles, etc., you can do little to nothing to change the visual appeal.

The only thing that can be guaranteed is that the item will be repaired or replaced if broken.

Size

Apartments are typically smaller than condos. In NYC, the average size of an apartment is approximately 850 square feet.

The next most oversized apartment in the competitive market is around 700 sq ft.

Utilities

Usually, utilities are not included with your monthly rent payments, and monthly charges in NYC are generally around $100-$150.

Pets

If you plan on moving into an apartment with your pets, check with your broker or prospective landlords before signing the lease to expedite your search.

Many landlords ban pets in their apartments because they see it as potentially opening the door to liability issues such as property damage or if the pet bites another person or pet.

Also, many people are allergic to certain types of pets, so some apartments may choose to eliminate this risk.

If your landlord allows tenants to have pets, they usually require a pet agreement to be signed, which may or may not be included in your lease.

Depending on the apartment, the landlord may also have special requests for your pet, such as spaying/neutering your pets, that you pick up after your pet, that all canines must be leased in public areas, etc.

Enforced Rules

The property management company of the building can enforce rules as they deem necessary, which apply to all of the tenants in all the units.

Such enforced rules can include the following:

• Following the lease
• Timely monthly payments
• Not disrupting the peace
• Keeping both the interior and the exterior relatively clean
• Proper trash disposal

Who is an apartment best for?

Apartments are an excellent option for tenants looking for a temporary living place with less responsibility. They are also best for families as there is much less of a chance of relocating than living in a condo.

Who is a condo best for?

Condominiums are best for those looking to get their feet wet with owning real estate.

Besides being an investment, you'll also be able to build equity and reap the tax benefits of owning property.

The Bottom Line

The answer to the condo vs. apartment question depends on the tenant renting and their expectations, wants, and needs.

Apartments offer the convenience and professionalism of having Property Management onsite to handle any questions, issues, rent payments, etc.

If you have an issue with the staff or need to escalate it, there is a chain of command, which may make it easier than only dealing with one person.

On the other hand, those looking for a more laid-back arrangement, more options to decorate, and more personal experience with the landlord may find living in a condominium the best choice.

It is also an excellent segue for those looking to enter the world of real estate or home ownership.

Assess your wants and needs and weigh your options when choosing which type of housing is the best for you and your family.

Discuss what everyone's expectations are when it comes to living quarters, and see which choice would best help satisfy most of those wishes.