- Founder Chris Krolow runs a marketplace for buying, selling, and renting private islands.
- He discovered demand as a tour guide when he was 19 and built a website.
- He’s since expanded to building resorts on islands, which he rents to couples for $3,950 a night.
Chris Krolow’s obsession with islands started when he was 19 and working as a tour guide in Canada for a group of Germans. “The big thing for these Europeans was having an island all to ourselves — and Canada has so many,” he told Insider. “They were in heaven.”
Each of those visitors paid $5,000 for their trip, he said — an impressive margin for the teen who ran the tour company himself and used campgrounds run by the Canadian national parks system. “My firm only paid $20 to rent an entire island for the night,” Krolow said. “I thought, ‘I am onto something here.'”
More than 20 years later, Krolow is now an island expert and the owner and operator of Private Islands Inc., a marketplace for renting and selling islands around the world. He also spent four seasons as the executive producer and host of HGTV’s “Island Hunters,” where he showed prospective island buyers properties in different locations worldwide before they made a purchase.
“After pitching the show, several networks were interested, and we eventually landed with HGTV — but they insisted the show follow their ‘House Hunters’ brand format,” Krolow said.
Krolow owns several islands in places like Canada and the Caribbean. He said the rentals of those properties act as a key revenue stream, forming around 25% of his annual income — the rest comes from commission he makes off of island sales.
From tour guide to island salesman
Krolow left home when he was 14 and spent a year living on the streets in Canada before scrimping enough money together to take a plane to London. He briefly returned to Canada to try to finish his schooling, only to return to the UK at 18 to work in the restaurant industry.
It was while he was working in hospitality, Krolow said, that he recognized the potential of being a tour guide to Europeans looking to explore North America. He said the people he met while traveling, especially Germans, were fascinated with Canada, and he picked their brains on what they were the most fascinated about before starting his company.
Krolow posted flyers on university campuses in Germany and put a few ads in classified newspapers advertising an orientation evening where he would share photos and information of what his tours entailed. “I wasn’t sure where it would go, but I put out advertisements, and the response was big,” he said.
“I was just a kid, and my goal was to basically charge as much money as I could and pay as little as possible for the camping — I’d feed them cheap hotdogs and white Wonder Bread. And they loved it,” he added. “But I ended up getting shut down because I had no permits or anything like that.”
He did, however, have connections, having met many island owners during his time running the business. “I was trying to think of a way to monetize the experience of that, so I put together a website with some islands for sale, maybe 12 or 18 of them,” he said. Rather than act like a broker, he decided to treat his business like a marketing tool and partner with local agents.
He’d stumbled on a smart formula: Marketing a private island individually is expensive, as the audience for rentals or sales is small and dispersed. Using a destination platform like his, however, reduced costs and drew a worldwide audience.
His strategy relied in part on his internet knowledge — he’d trained in web design after his tour firm shuttered. “It was basically about getting all the keywords for private islands because everyone was fighting for search-engine prominence at the beginning,” of the internet boom in the late ’90’s, he said. “My goal was to own the private-island brand.”
His first client found him soon after launching his website — a guy from Panama who offered Krolow commission to list his island and sold it shortly after. “That was a fluke, of course, like beginner’s luck. But that’s when I decided, ‘OK, there’s something here. People aren’t just crazy about renting islands, but they’ll pay a premium to own one,” he said.
Today, Krolow said there’s a huge demand for Greek islands, but the sale process can take years because of bureaucracy. In some island regions closer to larger cities — like Georgian Bay, Ontario — islands can get snapped up before they even hit the open market, but he added that it typically takes six months to a year to close a deal.
Buying up his own land investments
Canada has more than 52,000 islands, the fourth largest number in the world, which provided Krolow with steady local supply and demand, as well as his own first island purchase — the three-quarter-acre Deepwater Island in Sans Souci Georgian Bay, which he said he closed on in 2013 and began renting out a few months later to tourists.
Krolow was so confident buying this property because he’d seen the viability of island rentals via his own business. “It was my own money, and I bought that island for cash, but we had so much traffic to the website renting out so many islands for other people.”
After exploring the Canadian island market, Krolow turned to Belize, another English-speaking country whose coastline is fringed with countless islands, or Cayes. By one estimate, there are 450.
His idea was simple: Find an out-of-the-way island and create a private resort, likely with room for just one couple, and charge them a premium for the privilege. He partnered with developer David Keener, a former client who appeared on an episode of “Island Hunters” with Krowlow, to do it. “I told him my concept and he looked at me, then opened a beer — I remember, it was a Heineken — and he said, ‘Let’s do it.'”
The result was Gladden Private Island, where couples now pay $3,950 a night to stay in glorious seclusion (for two couples, the cost is $4,950 a night). The staff for the villa-hotel lives on a second, adjoining island.
Krolow declined to share what the pair paid for the property, but said it would cost around $5 million for someone else to replicate the existing setup. He added that Gladden is booked solid a year in advance, other than the occasional cancellation — so much so that he’s building a second, sister property nearby called Sapodilla Private Islands, which he aims to open next year.
Location and seasonal considerations are vital in turning a profit as an island owner
Krolow said it was crucial for him to focus on the premium tier of clientele, since it’s near-impossible to make money otherwise. “A private island is always going to cost more to run than a luxury hotel: transportation costs a mainland resort doesn’t have to deal with, hurricane insurance, staffing,” he said.
Islands can also be seasonal, which reduces the window during which the owner can make money. Canada’s islands, for instance, typically only rent out for the months of June, July, August, and September due to weather — property taxes, however, are due year-round.
He said isolation is key, too: If you’re renting out a room for thousands of dollars, the island must be truly private — so no fishing shacks available for $100 a night on a nearby beach, for instance. But a viable island should be close enough to the mainland that a water taxi isn’t prohibitive and can be incorporated effortlessly into the rental cost. “It’s almost impossible if it’s too far out, because you have to get someone there to do the turnover between guests, too,” he said.
Part of his strategy is to focus on week-long rentals rather than single nights (Gladden’s minimum stay is seven nights per booking). Cancellation policies must be stringent, too. Krolow will rebate 80% of the reservation amount if canceled in writing 60 to 90 days prior to arrival, while no refunds are offered after that window. Cancellations, he said, are “rare,” but the waiting list usually allows him to quickly plug any gaps. “It’s not an island resort with 12 villas where you have 12 incomes. There’s literally one group per day, so a last-minute cancellation can put your margins in the negative,” he said.
Celebrity
Chip and Joanna Gaines share their future plans for the castle they bought and renovated. The project took 3 years total and now they have to decide if they want to keep it or sell it.
Chip and Joanna Gaines are the proud owners of a beautifully restored castle but what’s next for the unique historic Fixer Upper property? While Chip said they originally planned to sell it once they completed the project, he doesn’t want to have any regrets if he lets it go.
Chip and Joanna Gaines said they initially planned to sell the castle
Chip and Joanna purchased the Cottonland Castle and originally planned to sell it when they completed the renovation.
During an October 2022 interview with ET, the couple discussed what’s next for the beautiful castle featured on Fixer Upper — and well, they’re not sure.
Joanna said, “There’s two different answers here … I think we sell it.”
Chip added, “We bought it to sell it — that was the intention.”
Even so, Chip said he’s not sure that’s what will ultimately happen. “When I think about owning a piece of history … I mean, this is a project that I was pursuing for 20 years,” Chip said. “The reality is we need to sell it and we should sell it.”
He added, “But I wonder if it’s not one of those things 10 years from now you don’t look back and wonder, ‘Gosh, should we have kept it? What if somebody in the family wanted it?’”
Will they rent out Cottonland Castle or live in it themselves?
When asked what they’ll do with the castle, Chip said, “I don’t think Jo and I want to live here literally.”
They definitely don’t have plans to rent it as a vacation property or Airbnb rental either out of respect to the area residents.
“This neighborhood means so much to us,” Chip said. “I think it would be a disservice to the neighborhood if we turned this into kind of a commercial entity in that way.”
Chip and Joanna Gaines said this is the longest project they’ve done yet
After they bought the castle, the Gaines had a long road ahead of them. “This was our longest project by a long shot,” Chip said. “It was fascinating. This thing took on a life of its own and it took longer, it took more money. I would say that’s partly why we’re so proud of it now that it’s in the rearview mirror.”
He added, “But during the project, it was exhausting and tiring and complicated.”
Joanna said it took three years total. “We bought it, we planned a year of design, research, figuring out where we needed to get the materials, and then once we finally pushed go it was almost a year of construction,” she explained.
As well as being time-consuming, the project also was tough to budget for. “Jo and I are wildly efficient,” Chip said. “We’re typically on really tight budgets, tight timelines. This house would not allow for that. It wouldn’t allow for the budget that we created for it.”
Steering in real estate is the illegal practice of discriminating against renters and buyers based on a legally protected characteristic. Steering can occur consciously or even unconsciously when real estate agents make assumptions about what a customer wants or needs based on the customer’s personal characteristics, including race, gender, and sexual orientation. An example of steering would be an agent not showing homes to Black homebuyers in a predominantly white neighborhood, while guiding white homebuyers toward that same neighborhood. This practice promotes homogeneous neighborhoods and intentionally discriminates against people of color and other underrepresented communities.
Steering is illegal under the Fair Housing Act but still occurs throughout the country, although in more subtle ways. Learn how to identify steering, understand its history, and ask the right questions to ensure that steering doesn’t happen to you.
What is steering in real estate?
Steering is the illegal practice of “steering” prospective homebuyers away or to certain areas based on their race, national origin, familial status, religion, gender, sexual orientation, or other legally protected characteristics. Generally, real estate steering negatively impacts immigrants, people of color, and LGBTQ+ folks, while benefiting white, cisgendered homebuyers. Historically, guiding Black people away from white neighborhoods has been the most prevalent form of steering.
While this practice was once widespread, it has been illegal since the adoption of the Fair Housing Act in 1968 (as part of the Civil Rights Act). Since the 1970s, steering has largely receded from public view but is still practiced nonetheless.
History of steering
Before the civil rights movement in the 1950s, real estate steering was widely accepted. This, combined with rapid urban development and the systemic economic inequalities that Black people continue to face, has led to dramatic negative effects on regional American demographics.
Real estate agents once openly shut Black homebuyers out of white communities. Nowadays, some agents instead apply other tactics to steer buyers to certain communities based on race, ethnicity, sexual orientation, or other protected characteristics. An agent may ask one homebuyer to reconsider a neighborhood based on “safety” or “criminal activity,” while saying nothing to another homebuyer who is a person of color. They may also say that they only want to show the “best” houses to some buyers and not others.
Steering has become a subtle and sometimes unintentional form of discrimination, where agents place certain homebuyers into more integrated neighborhoods at a higher rate than other homebuyers. The practice has affected the demographic makeup of cities across the country and is perpetuated to this day.
Differences between steering, redlining, and blockbusting
These real estate practices are illegal, discriminatory, and are not tolerated under the Fair Housing Act. Unfortunately, discrimination in real estate services remains pervasive. Historic and continuing discriminatory practices continue to influence the demographics of many areas around the country.
Steering
A form of redlining, steering involves a real estate agent influencing a homebuyer’s choice of communities based on the buyer’s race, religion, gender, sexual orientation, or other protected characteristic. A real estate agent may not tell a buyer about available properties that meet their criteria within certain neighborhoods because of their assumptions about what a customer wants or needs based on the customer’s personal characteristics. Steering can be subconscious and influenced by internal biases. As such, the practice is often subtle. Steering leads to monocultural, single-race neighborhoods that generally favor white, cisgendered homebuyers.
Blockbusting
Blockbusting is when real estate agents manipulate homeowners into selling their property at a lower price based on a false fear that the socioeconomic makeup of the area is changing. The agents falsely convince homeowners that new groups of buyers moving in will negatively affect the sale value of homes in the area. In practice, this tactic generally favors white homeowners and negatively affects people of color.
Let’s look at an example: an agent hires a person of color to walk dogs through a neighborhood. Immediately after, the agent asks homebuyers in that neighborhood if they want to sell their home due to an increase in homebuyers of color. The agent asks for a lower price based solely on the false assumption that people of color will decrease the market value in the neighborhood.
Redlining
Redlining generally refers to the denial of services such as mortgages, insurance loans, and other financial services to residents of certain areas, based on their race or ethnicity. It originated from government-created “residential safety maps” that rated neighborhoods based on a number of factors, including race. These maps were created as part of the 1930s New Deal, where Congress offered government-insured mortgages to homeowners to ward off Depression-era foreclosures. The red-colored areas of the maps were seen as risky mortgage investments and were given the lowest “D” rating. These redlined areas were home to mostly people of color and other minority groups, who would therefore receive a bad mortgage rate or none at all.
How are real estate agents trained?
Before somebody becomes a real estate agent, they have to take licensing and training courses. Usually, the steps are fairly simple – research a state’s requirements, take a pre-licensing course, take the licensing exam, and activate a license. From there, before joining a brokerage, a prospective agent can choose to join the National Association of Realtors (NAR). Not every agent joins NAR and it’s not required that they do, but most join in order to become a REALTOR®.
REALTORS® agree to a strict code of ethics that bars any form of illegal discrimination. The Code of Ethics, along with fair housing laws, determines how real estate agents conduct their business. Generally, fair housing laws bar agents from providing demographic data about a neighborhood. The laws also require agents to provide equal guidance to customers about areas in which they may want to live.
What are the consequences of steering?
Steering in real estate is a violation of the Fair Housing Act and is punishable by law, through a private lawsuit, an administrative complaint filed with the U.S. Department of Housing and Urban Development (HUD) or a state/local fair housing agency, or actions brought by the Department of Justice. Penalties include high civil monetary fines, in addition to exposure to claims for actual damages (economic or emotional distress), punitive damages, and attorney fees. Many state licensing laws also prohibit discrimination, and an agent found to be in violation may have their license revoked or be banned from NAR.
How should real estate agents treat homebuyers and sellers?
In order to reduce the possibility of steering, agents should always:
- Be objective: Provide customers with objective information that lets the customer drive their home search. Agents shouldn’t direct prospective homebuyers with similar searches to different neighborhoods based on their perception or assumption of what neighborhoods might be a better “fit.”
- Be fair: Provide customers with listings based on their objective search criteria, such as property features or price point. Customers with the same criteria should be shown the same listings.
- Be honest: Provide the same guidance and information to all customers. Don’t make or act on assumptions about a person’s financial qualifications, credit worthiness, housing preferences, neighborhood preferences, etc. based on a client’s name, race, national origin, gender, religion, or other protected characteristics.
- Be inclusive: Avoid coded language when talking about neighborhoods or properties.
- Discussions about the quality of schools or the safety of a neighborhood can become code for racial or other differences in a community. Rather than opinions on school quality or neighborhood safety, agents should direct customers to objective, third-party resources.
What to do if steering is happening to you
The following are some steps you might take if you’re a homebuyer who thinks you’re experiencing steering:
- Ask: The first thing you should do is talk to your agent or brokerage. Be upfront with and ask them why they’re only showing you houses in certain neighborhoods. If this feels unsafe, ask a friend to help or find another agent.
- Take notes: Write down the name of your agent, their agency, and their license number; keep track of emails, third-party communications, and any instances of note.
- Talk to an expert: Steering is wrong and illegal, even if it’s unintentional. Contact HUD, your local fair housing office, or a real estate lawyer to help you consider your options.
The content of this article is intended to convey general information only and not to provide legal advice or opinions. Please contact an attorney for advice on specific legal issues.
From the 60 miles of shorelines and delicious BBQ to the state’s deep-rooted history, Alabama has a lot to offer its residents. Sit back and enjoy the southern charm of small towns like Opelika or cheer on the Crimson Tide in Tuscaloosa; there’s something for everyone to enjoy. Despite the excellent pros of living in this state, it can also have its drawbacks.
Are you looking for homes for sale in Birmingham or considering renting an apartment in Huntsville? Here are ten pros and cons of living in Alabama to consider before making this state your home.
Pros of living in Alabama
1. Alabama has a plethora of white sandy beaches
If you’re looking to escape to a tropical oasis without a crowd, you’ll need to check out one of Alabama’s white sandy beaches. Alabama borders the Gulf Coast, which creates around 60 miles of beautiful beaches and views. Orange Beach, one of Alabama’s largest communities, is known for its unforgettable experiences. From golfing and hiking to kayaking and boating, there’s an activity for all. For those seeking a real escape, head to Dauphin Island. With just a three-mile-long bridge, you’ll find yourself in a charming small-town filled with historical attractions, fantastic beaches, and warm temperatures.
2. The cost of living is affordable
Although Alabama’s median sale price is up by 7.6% YoY, it’s still only $278,200, which is extremely low compared to popular metros like California, which has a median sale price of $761,700. Alabama is a great state to live in if you’re looking for lower cost of living. If you’re considering cities to move to, check out this list of affordable Birmingham suburbs and this list of affordable places to live in Alabama.
3. Alabama has picturesque landscapes
From mountain ranges and coastlines to farmlands and charming towns, Alabama has beautiful landscapes. Spend your day hiking Lookout Mountain in the north with views of the Little River Canyon & Falls and the fall foliage in the valley. If you’re wanting to experience going back in time, explore the southern charm in towns like Mooresville which is on the National Register of Historic Places.
Michael Huxley from Bemused Backpacker, a resource for all things travel, shares, “Alabama is packed with protected nature spots and areas of unique natural beauty. From the hiking trails in Monte Sano State Park to the picturesque waterfront of Ditto’s Landing, there is much to see. My favorite scenic spot is Burritt on the Mountain, where you can see the state stretch out as far as the eye can see.”
4. Football is very popular in Alabama
If you’re a football fan, Alabama welcomes you. Football is the heart of this state, college football, to be exact. You’ll hear football conversations among the locals about popular teams like the Crimson Tide in Tuscaloosa, Alabama State Hornets in Montgomery, or the Auburn Tigers in Auburn. And if football isn’t your thing, don’t fret; there are plenty of other things to do in Alabama.
5. The state experiences plenty of sunny days
With 213 days of sun, Alabama boasts excellent weather all year long for all sorts of activities. Throughout many parts of the state, you can expect the summers to average 90 degrees Fahrenheit and above while the winters remain mild. Sunny weather and an incredible coastline make it perfect for many outdoor activities like water sports, hiking, kayaking, or just exploring a new town. So if you’re tired of the cold weather, Alabama is a state to consider.
Cons of living in Alabama
1. You might have to deal with cockroaches
One trade-off of having warm weather in the south is the number of pests that follow. Especially in Alabama, you’ll need to watch out for cockroaches. These pests can invade your home, and although these pests don’t cause any structural damage, these pests can be a nuisance and cause sanitation issues. Learning how to get rid of roaches in your home can be a lifesaver if you encounter them.
2. Many places close early or are closed Sundays
Although many large cities like Mobile have steered away from this long-standing tradition, smaller towns still practice traditional hours like closing early throughout the week or closing entirely on Sundays. If you decide to move to the state, you’ll want to know which stores have these hours to plan your shopping accordingly.
3. The state has a variety of alcohol laws
Alabama has some fairly strict alcohol laws. Some counties in Alabama don’t sell alcohol at all, while others only sell it during the week but not on Sundays. In addition, beverages with higher alcohol content, such as spirits, can only be sold through state-run liquor stores. Just be prepared for these restrictions if you are moving to Alabama and like to have a drink or two.
4. Alabama has extreme weather conditions
With the location of the state boarding the Gulf Coast, Alabama is vulnerable to natural disasters all year long. You’ll find that the most common occurrence is flash floods, tornadoes, severe thunderstorms, and hurricanes. In the spring months, tornadoes frequently occur, so it is best to stay prepared and seek a storm shelter. There are ways to protect yourself and your home from these disasters. Opt for storm windows, and take the essential steps to stormproof your house.
5. The humidity levels in Alabama can be high
During the autumn and spring months, you’ll see a rise in humidity levels. If you’re not used to moisture in the air, it may take time to get used to. Humidity can make the hot weather seem even more severe, so taking time to cool off is essential. With the humidity rising in the autumn and spring, you’ll notice that summers and winters are pretty dry. Although getting a break from the wet air might seem significant, it can be more challenging for your body to adjust.
Pros and cons of living in Alabama: The Bottom Line
Alabama has many great qualities to offer residents living there. There’s plenty of southern charm, beautiful landscapes, and fan-based communities. If you’re considering relocating to this state, you’ll need to weigh the pros and cons of living in Alabama and what that might mean for you.