Although the words are often used interchangeable in speech, when it comes to investing in a rental property, the terminology needs to be accurate. The most evident differences between an apartment, a condo, and a townhouse relates to the physical structure, the living space to shared amenities ratio, and ownership, liability, and maintenance.

Apartment. Sharing walls, floors, and ceilings within a building, apartment tenants also share common areas and amenities. Because apartments are normally rented, the landlord is responsible for the cost of maintenance and homeowner’s fees.
Condominium. Although a condo is individually owned, the ownership is restricted to the inside structure of the interior unit and not the land. The costs associated with the shared property and amenities such as a pool or gym mean that homeowner’s fees are higher.
Townhouses. Sharing only an adjoining property’s wall, a townhouse is an individual living space. Ownership includes the structure along with the land on which is built, including the front and back yards. Because there are limited community amenities, the homeowner’s fees are reduced.