As South Florida’s luxury real estate market continues to evolve, one often-overlooked factor can deeply impact both value and lifestyle in a significant way: the governance and operation of homeowners associations (HOAs). According to seasoned broker Nathaniel Crawford, managing broker of Black Luxury Realty, proper due diligence on an HOA may be just as critical as location and price in a luxury purchase. Crawford dove deep into the subject in a recent interview on WPBF in West Palm Beach, Florida.
“In the luxury communities we serve, the condition of the HOA is not a footnote, it’s a strategic asset or a hidden liability,” said Crawford. “A well-run association delivers the infrastructure, aesthetics and maintenance regime that preserve value and lifestyle. In contrast, a poorly managed HOA can detract from both.”
Crawford’s message follows recent coverage in local media that highlighted how many first-time and move-up buyers are focusing almost exclusively on home price and neighborhood, overlooking the impact of HOA fees, rules, reserves and governance.
In affluent condominium towers and gated estates across Miami-Dade and Broward counties, HOA dues frequently run into the hundreds or even thousands of dollars monthly. But Crawford notes the more meaningful metric is not simply cost, it is what the fee covers, how the board functions, and how transparent and forward-looking the association’s capital planning is.
“Buyers should ask "What portion of the fee is devoted to maintenance, insurance, capital reserves and management? Does the HOA have a healthy reserve fund? Are the board members accessible and engaged?” said Crawford. “These are not promotional talking points, they are questions of fundamental relevance to long-term ownership.”
He also draws attention to intangible factors sometimes ignored in luxury communities: community culture, enforcement of rules, responsiveness to owners, and the stability of the governing board. “You may love the view, the finishes and the building’s amenities,” he said. “But if the board is dysfunctional or lacks vision, the whole experience can shift.”
Crawford outlines a three-step approach for high-net-worth buyers and family-office investors:
Document review – Examine the HOA’s budget, reserve study, recent board minutes, insurance certificates and any litigation history.
Owner sentiment – Leverage online platforms such as community forums, social media and owner‐neighborhood apps to gauge how current residents view the association. “These tools provide candid insight long before you speak to the HOA,” said Crawford.
Interview the board/management – During the walk-through or pre-closing stage, ask board members or the community manager pointed questions: “What is the plan for major deferred maintenance? How often is the reserve study updated? What is the process for rule enforcement?” Crawford adds: “There is no such thing as a dumb question when it comes to HOAs.”
For real estate advisors serving executives, entrepreneurs or family offices, Crawford believes mastering this area yields a strong competitive advantage. “In luxury brokerage, value is often hidden in the fine print,” he explained. “Being able to highlight the governance and fiscal health of an HOA positions an agent as a trusted advisor rather than a listing facilitator.”
About Black Luxury Realty
Founded and led by Nathaniel Crawford, Black Luxury Realty is a boutique brokerage specializing in high-net-worth and ultra-luxury real estate across South Florida. The firm focuses on delivering exceptional service, rigorous due diligence and a client-first approach to luxury property transactions.
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For more information about Black Luxury Realty, contact the company here:
Black Luxury Realty
Nathaniel Crawford
305-229-9743
nathanie.crawford@gmail.com
501 E Las Olas Blvd Suite 303, Fort Lauderdale, FL 33301
