A condominium, or condo, is a type of property ownership in which each owner holds title to an individual unit and shares ownership of the common areas with the other owners. Common areas typically include hallways, the roof, the grounds, parking areas and amenities like a pool or gym.
A condo describes how a property is owned, not what it looks like. A condo can be a unit in a high-rise, a garden-style building or even a row of townhouses.
How it works
A homeowners association (HOA), sometimes called a condo association, manages the shared parts of the property. Owners pay regular dues that fund maintenance, insurance on the common elements, reserves for future repairs, and shared services. The association is governed by recorded documents, usually including:
- Declaration or CC&Rs: the rules that create the condominium and define units and common areas
- Bylaws: how the association is run, including board elections and meetings
- Rules and regulations: day-to-day policies on topics like noise, pets, parking and move-ins
Owners are generally responsible for the interior of their unit, while the association handles the building structure and shared spaces. The exact split is defined in the governing documents.
Renting out a condo
Condos can make good rentals, but there are extra steps:
- Check rental restrictions. Some associations limit the number of units that can be rented, set minimum lease terms or ban short-term rentals.
- Account for dues. HOA dues and possible special assessments cut into cash flow, so include them in your numbers.
- Get the right insurance. The association’s master policy usually covers the building, while you need a policy for your unit and liability as a landlord. See landlord insurance.
- Share the rules with tenants. Tenants generally must follow association rules, so attach them to the lease.
Why it matters for landlords
Condos often need less exterior maintenance than a house, which can make them easier to manage from a distance. The tradeoff is less control, since the association sets rules and dues. If you manage associations themselves, TenantLoop offers an HOA mode, and our HOA management guide explains the basics. California owners can also review California HOA laws.
Related terms
In practice. How the term shows up day to day.
Can I rent out my condo?
Often, but check the association's governing documents first. Some limit how many units can be rented, set a minimum lease term or ban short-term rentals.
Who repairs what in a condo?
Usually the owner handles the inside of the unit and the association handles the structure and shared spaces. The exact split is written in the declaration or CC&Rs.
Do my tenants have to follow the association's rules?
Generally yes. Attach the rules to the lease so tenants know them, and count HOA dues and possible special assessments in your rental numbers.