What’s the Difference Between a Condominium, Co-Op, and HOA?

Navigating the different housing designations and what they mean can be tricky. Understanding the key differences between condominiums, cooperatives, and homeowner’s associations is extremely important if you are a board member of either community.

While you may have heard each of the following categories, Wise Property Management, a St. Petersburg association management team, breaks down each community type so you can feel confident your understanding goes beyond just knowing the word.

1. Condominium 

A condominium community is designated by a developer who has filed a Declaration of Condominium with the county they have built in. These communities have associations made up of residents and have quarterly dues that go towards the upkeep of the facilities. 

A condominium is set up where members own their respective units with joint ownership of the community’s common areas. Common areas include amenities, grounds, elevators, and even outer parts of units (roofs or exterior walls) or walkways.

A Board of Directors oversees business, and many condominium associations hire local condo association management to support their business needs. 

2. Cooperative (Co-Op)

Like condominiums, co-ops have a board of directors that helps with decision-making for the community. There are also often monthly fees that help with the maintenance of the property, much like condominium communities. 

A critical difference that makes a co-op unique is that people in these communities do not own their homes. They instead have a stock certificate and proprietary lease that allows them to occupy a specific building or unit. 

Additionally, those who are shareholders of the community have a say in who can buy into the community. Often, potential co-op members are interviewed by others who are already part of the community before they are allowed to purchase shares.

3. Homeowner’s Association (HOA)

Lastly, HOAs signify gated and some non-gated communities, which a developer has established during the construction of the community. There is also a board of directors that helps with the business of the HOA, and homeowner’s association management companies are sometimes hired to provide even further assistance. 

While the above may sound just like a condominium community, the amenities in an HOA are often of a higher caliber than condominiums, including swimming pools, tennis courts, and golf courses.

External structures of home units are not common spaces like they are in a condominium; however, amenities are considered common, shared areas and fees are paid to ensure the upkeep of these facilities. 

 

No matter the type, Wise Property Management in St. Petersburg can provide association management that will make the daily needs of your community easier to oversee.

Contact us today to learn more about how Wise Property Management can help your condo or homeowner’s association. 

 

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