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There are a number of differences between condos and coops. These can effect the amount of control you have over your property and the amount of money you pay each month in maintenance fees.

Coops often look cheaper or better at first glance, but you need to balance that price tag against possible restrictions and higher maintenance fees.

Ownership

When you purchase a condo, you own your unit. You are free to sublet it and sell it as you see fit. You also don't need to go through a thorough review before you allowed to purchase your condo. The previous owner makes the decision to sell, not the board.

With a coop, you never actually own the unit. You pay a purchase price to buy into the cooperative - which owns all of the units. However, in many ways you are like a renter with a stake in the ownership of your unit.

The coop's board can choose to approve or disapprove all prospective owners. Buyers may have to meet income qualifications. Any sublet agreements must also be approved by the board.

Maintenance Fees

As a condo owner, you agree to pay nominal maintenance fees to the association. This includes general upkeep - outdoor maintenance, landscaping, etc.

A coop also charges fees, but these can often cost more. Since the corporation retains ownership of the property, you don't necessarily pay the entire price when you purchase your unit. Your coop fee includes all of the maintenance in a condo fee, but it might also cover mortgage fees incurred by the corporation.

The cost of fees at a coop can vary wildly, and this can impact your decision. In some cases, fees are little more than at a condo. In others, a coop can cost 20-30% of normal rent.

Exclusiveness

Since a condo can be bought and sold at the owner's discretion, these communities are not exclusive. There may be some social pressure to control who moves in and out, but there is no board oversight.

Coops, on the other hand, exercise a lot of control over their residents. A board can set restrictions for prospective purchasers and control who enters the community. This is often a concern for wealthier coop communities, and this could be one determining factor.

Bottom Line

In a condo association, a group of homeowners come together to share the burdens of maintenance. In a coop, a group of renters collectively owners the building and exerts greater control over its day to day operation.

For first time owners looking for a home on the cheap, a condo is probably a better choice. For those looking for a more exclusive community, a coop may seem more appealing.

Either way, be sure to consider the entire cost of a unit - a purchase price and its likely maintenance fees - before you make any decision.

Learn more about this author, B. Rock.
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