In real estate, people often use different terms to refer to various types of properties. When looking for places to rent, you might hear the words condominium or condo, townhome, and a single-family home. If you’ve ever wondered how these properties differ from one another, we’ve got you covered. Learn more about what defines a townhouse and how this type of home is different from other types of residences.
What is a townhouse?
A townhouse is a residential property owned by an individual resident that is connected to other townhouses. In some developments, townhouses are built in rows with no space between them, so they share walls. Another name for this style of property is townhome. Many townhouses have multiple floors connected with stairs, helping to increase their square footage. Townhome sizing varies drastically between areas and developments. A townhouse also usually includes a front and backyard that the property owner can use as they please.
A homeowners association (HOA) typically manages a townhouse development or community. Individual owners maintain responsibility for the interior of their homes, including repairing any damages or performing upgrades, while the HOA maintains responsibility for the common areas and exterior elements. In some developments, property owners are responsible for their own exteriors, including the roof. The fees paid to the HOA might also cover trash removal, sewer, and water services for the community.
Some townhome developments also include amenities for residents. Examples include clubhouses, tennis courts, swimming pools, walking trails, and golf courses. Each property owner must pay dues to the HOA, and the money paid is used to maintain these amenities and all the other shared spaces. HOA fees vary based on the number of units, amenities offered, and the costs associated with maintaining the property and amenities.
Townhouse vs. condo
Since townhomes are individually owned, they share some similarities with condominiums (condos). However, they differ in their layout. A condo is typically a single unit in a multifamily complex and may sit on top of or below another unit. While condos are individually owned, they rarely have more than one level. The property owner maintains responsibility for the interior of the condo, while the HOA maintains responsibility for the exterior components and shared spaces.
Condo communities generally offer more amenities to their residents, such as access to a gym or a swimming pool. However, newer townhome developments are now including some or all of these amenities for residents to make them more appealing. When considering a townhouse versus a condo, it’s helpful to look at all the factors and decide which will fit better with your desired lifestyle.
Townhouse vs. condo: Ownership
Ownership of a condo vs. townhouse comes into play when talking about maintenance. Condo owners are responsible only for the maintenance inside their individual units. Owners then usually pay HOA dues to cover maintenance of the common property, building exterior, and shared amenities. These fees can then get passed down to the renter in some instances.
Two main types of townhouse ownership exist:
- Condominium ownership: This type of townhouse ownership means owning just the inside of the townhouse. Upkeep of the exterior of the home and yards are covered by HOA fees.
- Fee-simple ownership: This type of ownership requires the owner to maintain the home along with the yard, including front, side, and back yards.
As the renter, you may or may not be responsible for maintaining different parts of the property depending on whether you rent a townhouse or a condo. It’s always a good idea to carefully check the terms of your lease so you know what you’ll be expected to do.
Townhouse vs. condo: Amenities
You’ll have access to common spaces and amenities in the property where you’re renting, so this can have a big effect on your lifestyle.
Condos are known for having great amenities available for residents to share. While specific amenities depend on the building and community, if you’re looking to live in a place with easy access to perks like a gym or pool, you might find exactly that if you go for a condo. Townhouses tend to have fewer amenities than their condo counterparts. That said, many newer townhouse communities are built with an eye to amenities, so it’s possible to find townhomes with features like pools, playgrounds, clubhouses, and more.
Townhouse vs. condo: Privacy
How much privacy you want and expect will play a big role in the type of housing you choose. Both condos and townhouses usually mean less privacy than you’d get in single-family housing. The balance here is that you’ll live at a property that’s easier to maintain.
If you’re looking for more privacy, townhouses tend to offer a better fit than condos. You’ll have neighbors only adjacent to you (as opposed to above and below you like in a condo). Many townhouses also include yards that are separate from other common amenities. This is a huge bonus if you need a place where kids or pets can play.
Townhouse vs condo: Rules
The rules and regulations the HOA sets for your community will also have a big impact on your lifestyle, so make sure you understand the culture of the place you have your eye on before signing that lease. Generally speaking, condos will have stricter rules than townhouses because the HOAs for condos play a bigger role.
Your personal preferences will determine the amount of outside regulation you want to live with. You might have to deal with limits to how you decorate your property, for example. On the other hand, more regulations often mean you won’t have to think about other aspects of your living environment, such as maintenance or assigned parking spaces.
Townhouse vs condo: HOA Fees
Townhouses usually have fewer amenities and require less maintenance, and so they’ll also usually have lower HOA fees. However, that means townhouse owners have to pay out-of-pocket for necessary maintenance.
So, will you have to worry about HOA fees if you’re renting? It depends. Your best bet is always to check your lease, which should state who pays for HOA fees. Look into this before signing a lease, too.
In general, landlords pay HOA fees because the HOA could foreclose on the property should the renter fail to pay. A landlord might therefore pay the HOA fee on your behalf, but set a rent amount that takes HOA fees into consideration. In other cases, the lease agreement will state that you’re responsible for paying HOA dues to the association directly. If your lease says the renter is responsible for paying HOA fees, then you’ll need to pay.
Benefits of townhouses
If you want the amenities of a condo with the increased privacy of a home, a townhouse might be the perfect middle-ground solution. You can enjoy some of the benefits of a single-family home, including fewer shared walls in an individual unit instead of living above or below someone else. Townhouses can also include outdoor space, which is appealing for those who want their own yard but don’t want to maintain a large property. If you have children or pets, a designated place to play outside can be a great perk of living in a townhouse.
The HOA fees paid in a townhome community often cover the exterior maintenance and care, including landscaping. If you don’t have a lot of free time for yard work but you do want to have a yard, a townhouse can provide the best of both worlds. Since many of the people living in a townhome community own their homes, the sense of community can feel stronger than what you might experience living in a condo or apartment. Residing in a townhouse might also provide access to appealing amenities.
Why consider renting a townhouse
If the benefits outlined above sound appealing, you might want to rent a townhouse instead of an apartment or condo. Many townhouse owners rent out their properties to individuals or families who are willing to abide by the rules. You might be able to get a little more living space with designated outdoor space, all for a price that’s comparable to other types of rental units.
What to expect when renting a townhouse
When renting a townhouse, it’s helpful to know what to expect. You’ll likely work with the owner to sign the lease agreement and go through the rules of the community, rather than a rental office or agency. Some property owners outsource the task of managing their rental properties to management companies, but some handle the details on their own. You also have to adhere to the rules of the community set forth by the HOA. The rules might outline how you can decorate the home’s exterior, what can be added, and when amenities can and can’t be used.
Most townhouse renters don’t pay the HOA fees directly to the HOA, but they may be included in the rent. Failing to pay the HOA dues regularly can result in a lien being placed on the property, so the owner usually pays the dues to ensure that it’s done in a timely manner. Some townhome communities limit the number of renters that can reside within them based on a percentage of owners to renters.
Before entering into a rental agreement to live in a townhouse, it’s helpful to go through the HOA regulations and terms of the lease. A few things to check include who is responsible for maintaining the outdoor spaces, including individual yards, and who lives on either side of the townhouse you plan to rent. You might also want to look into the amenities offered in the community and whether they align with your lifestyle.
If the idea of having more indoor and outdoor space appeals to you, visit Zumper to explore townhome rentals in your area. You can filter your search so only townhomes show up, making it easy to find the next place you can call home.
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