What Sets Condos and Townhouses Apart: Ownership, Fees, and Maintenance

Answer

Many homebuyers wonder about the key differences between a condominium and a townhouse. While both property types often feature shared walls and community amenities, they differ significantly in ownership structure, monthly fees, and maintenance responsibilities.

In a condominium, you own only the interior of your unit (the “airspace” within the walls) and hold a shared interest in common areas—lobbies, hallways, roofs, landscaping—managed by a homeowners association (HOA). In contrast, townhouse owners hold a fee simple title to both the interior and exterior of the unit, including the land beneath it and the roof.

• Ownership Structure:
  • Condo: Individual unit + shared common elements
  • Townhouse: Entire structure + land parcel
• HOA Fees:
  • Condos typically carry higher monthly dues (often $250–$400+) to cover building insurance, exterior maintenance, amenities and reserves.
  • Townhouse dues can be lower (around $150–$300), since exterior upkeep (roof, siding, yards) may fall to the owner or a smaller HOA budget.
• Maintenance Responsibilities:
  • Condo owners focus on interior repairs; the HOA handles exterior and common area work.
  • Townhouse owners manage both interior and exterior maintenance (lawn care, roof repairs), unless the HOA contracts these services.
• Financing & Insurance:
  • Mortgage underwriting for condos often requires project approval by Fannie Mae or FHA (check on Fannie Mae).
  • Insurance for condos covers walls-in only; townhouse policies resemble single-family home coverage, including exterior.

On average, condos appeal to buyers seeking a low-maintenance lifestyle and access to shared amenities (pools, fitness centers), while townhouses suit those wanting more control over their property and outdoor space. Price per square foot may also differ by 5–15% depending on location and HOA package.

Before making a final decision, it’s advisable to verify HOA documents, review budget reserves, and consult a licensed attorney or real estate agent familiar with your target community. Understanding these nuances will help you choose the right property type for your lifestyle and financial goals.