Damien Keyes.THE popularity of AirBnB continues to grow and the opportunity to make some extra cash is appealing to many, whether they are homeowners or renters. This leads to the question of can a tenant legally sublease part or all of their rented property on AirBnB? And, if so, under what circumstances can they do so? When big events, such as the Supercars, hit Townsville there is an influx of visitors here and many of them opt to spend some time either side of the event to hit the tourist spots, which is fantastic for our economy. Many locals are capitalising on the chance to earn perhaps five times the usual weekly rent, especially those living near the venue.But if they are renting the property, where do they stand legally? Can they sublease part or all of the property they are renting on AirBnB? When a tenant arranges to rent out part or all of a property they are renting this is called a sublease or subletting. The Act that governs rental accommodation in Queensland is the Residential Tenancies and Rooming Accommodation Act 2008. If a tenant wants to sublet the property they are renting, they must seek written permission from the landlord, usually via the property manager. More from news01:21Buyer demand explodes in Townsville’s 2019 flood-affected suburbs12 Sep 202001:21‘Giant surge’ in new home sales lifts Townsville property market10 Sep 2020The Act states that the lessor/agent must not unreasonably refuse permission to sublet or transfer the agreement from one person to another.What does this mean? Well, according to the Act it means the lessor must act reasonably in failing to agree to consent to sublet. They will be perceived as having acted unreasonably if they behave in a “capricious or retaliatory way” in failing to agree to the sublet. Like most things in life, it’s probably down to the tenant and the landlord having a good, mutually respectful relationship. If the tenant has proven trustworthy, reliable and to have taken good care of the property then the landlord may be more likely to grant this request. Landlords are likely to value good tenants who maintain the property and protect its value. In the REIQ’s view, a landlord is more likely to say “yes” to a sublease arrangement that is a longer-term arrangement and where the normal checks and balances are in place.With AirBnB, those checks and balances are not in place and this may, understandably, make some landlords nervous because they have no idea who is residing in their property.
In relation to the first of the four issues, IASB member Patrick Finnegan said the confusion of consistency with uniformity was a key issue.“Cashflow-based … and present-value measurement are similar, but they may not be identical,” he said. “That is different from the selection of a discount rate. There is always going to be differences in judgements … you’re never going to get uniformity.”Of particular interest to defined benefit plan sponsors, IASB vice-chairman Ian Mackintosh pointed to the problems that can arise when the notion of an entity-specific measurement is applied in practice.“I don’t assume the market value is a better indicator than the value in use,” he said.Vatrenjak responded: “I am not arguing to say we should scrap entity-specific [discount rates] because I for one see value in using entity-specific values, [as] it allows companies the opportunity to actually show what is unique about them, what is specific.“Let’s see if this really is a problem … [and] how that would be solved by simply tightening the description of this entity-specific measurement.”Until now, the IASB’s research effort on discount rates has operated at a low level.The board’s 2011 agenda consultation revealed moderate support among constituents for it to look into discounting under IFRS.The project is limited in scope, and the board has allocated just one full-time staff member to it.It is also possible that the board might issue its planned discussion paper on discounting and then make no changes.The discounting project is not only looking at pensions accounting under IAS 19 but at all IFRSs that require discounting.This includes IFRS 9, IAS 36 and IAS 37.The research project remains, however, at an early stage.Staff want to take soundings from the board on a draft discussion paper that looks at the measurement objective, components of present value measurement, measurement methodology, disclosures and terms and definitions.According to the staff’s draft research paper, they have identified three main aspects of present value measurement methodology in IFRS: how risk adjustments are reflected, how tax is accounted for and how inflation is accounted for.Developments on the research project will be of keen interest to DB plan sponsors looking increasingly at ever-more sophisticated approaches to discounting.Whereas a decade ago a sponsor might have discounted an IAS 19 liability using a simple index rate, preparers are increasingly looking to blended discount rates to reflect the different nature and duration of the different components of their IAS 19 liability.Under today’s accounting model, a DB sponsor must project its pension liability forward using the relevant plan assumptions and discount back using a AA-corporate bond discount rate to reach a net present value.There will be a concern in some quarters that, balanced against the fact the IASB might do nothing on discount rates, it is also possible the board could propose a move to a risk-free rate. This would bring with it the danger that sponsors would take a big hit to equity, which would, in turn, impact on lending if banks and rating agencies rely on the headline accounting numbers. The International Accounting Standards Board (IASB) has taken the first of its due-process steps toward the issue of a discussion paper on discounting practice, although it stressed the project was not about imposing a move to a fair-value or risk-free discounting approach under International Financial Reporting Standards (IFRS).At a recent IASB meeting, project manager Aida Vatrenjak said: “The project is not about fair values – it is not really about historical cost, although it was hard not to mention because it was glaring at me.“It really is about those measurements we use in IFRS described as ‘current value measurements’ but [which] are not a fair value.”Among to the issues to emerge at the meeting, intended to take soundings from board members, were defining the discounting issue as opposed to a wider financial reporting issue; the challenge of applying an entity-specific measurement; the notion of a risk premium; and the relationship between taxation and discounting.
Go back to the e-newsletterSmall Luxury Hotels of the World (SLH), the champion of exclusive, independent hotels has announced two new additions this month, both part of YTL Hotels. MUSE St Tropez in France and the Kasara Niseko Village Townhouse in Japan expand the geographical diversity of the YTL hotels currently in the SLH collection, offering guests the opportunity to experience world-class hotels and resorts across four diverse countries and further cementing the relationship between the two companies.YTL Hotels currently within the SLH collection include Pangkor Laut Resort, Cameron Highlands Resort, The Majestic Malacca and Tanjong Jara Resort in Malaysia, Gaya Island Resort in Borneo and the Spa Village Resort Tembok, Bali in Indonesia.Luke Hurford, Senior Vice President – Sales and Marketing for YTL Hotels says: “YTL Hotels is excited to bring two more iconic destinations to the SLH brand. Muse Saint Tropez – Ramatuelle, the epitome of style, is a chic hideaway within Saint Tropez and embodies the defining features of SLH. Niseko Village has over the past decade become the hottest ski destination in Asia and a must-ski mountain for skiers from around the world. Winter travelers find themselves returning for summer for its world-class golf courses, activities and to get a taste of Hokkaido’s renowned seafood, meats and farm-to-table seasonal produce given Niseko’s reputation as Japan’s breadbasket. Kasara Niseko Village Townhouse joins a rarefied collection of ski resorts around the world with SLH properties including Jackson Hole, Zermatt, Gstaad and Courchevel, and becomes the first at a Japanese ski resort. Partnering with SLH in Niseko is another step forward in our plans to evolve Niseko Village into one of the world’s great year-round mountain resorts.”Daniel Luddington, Vice President of Development for SLH comments: “The addition of these two exceptional properties in St Tropez and Hokkaido exemplify our independently-minded approach and provide our guests with two very different experiences in an established and an emerging destination. They also beautifully complement the existing and iconic YTL hotels that have been with SLH for several years. We are excited that we have now been able to extend this relationship beyond Asia and look forward to continuing to provide YTL with a valuable association with SLH for many years to come.”MUSE Saint Tropez – Ramatuelle, FranceEncapsulating the laid-back glamour of the Riviera, MUSE Saint Tropez – Ramatuelle is a chic retreat that reflects architectural simplicity nestled in the heart of an award-winning ecological and self-sustainable garden designed by Sophie Agata Ambroise. Its 14 well-appointed suites open onto private gardens or wooden terraces and plunge pools in selected suites. The main pool is interpreted as a water salon surrounded by a bar, cabanas and loungers for sun seekers, massages, light meals or sundowners, complemented by soothing lounge music. The exquisite ‘M’ restaurant brings to life the flavours of the earth and sea, evoking the senses with locally sourced produce from the Mediterranean and the Atlantic coastline. Rejuvenation through old world spa traditions using exclusive spa products based on the gentle hydrolat technique where microscopic oil droplets are suspended in water, can be experienced in the comfort of each suite. In addition, concierge services, conveniences for mobile devices to complimentary shuttle services to town or the beach and custom-made bicycles, guests’ needs are met around the clock.Kasara Niseko Village Townhouse, Hokkaido, JapanLocated at the base of Mount Niseko Annupuri, Kasara Niseko Village Townhouse occupies a position at the heart of Niseko Village, an all-season destination that has become legendary among the skiing cognoscenti and internationally acclaimed for being one of the premier powder destinations in the world. Niseko Village is centrally located within the Niseko United ski area and accesses its inter-linked ski resorts, an international snow school, award-winning hotels with spa and onsen facilities, luxury residences, a dining and retail village hub, an outdoor nature park and two world-class golf courses with future development phases in the works – now made even more accessible by the extension of the bullet train service to Hokkaido which commences on 26 March. The eight exclusive townhouses are an ode to Japan’s heritage townhouses that were inhabited by craftsmen and wealthy merchants from the Edo period with bespoke interiors that embody authentic Japanese charm with contemporary elegance. Each three-bedroom townhouse accommodates up to six adults with a flexible dining area that can be converted into an additional bedroom for two children, and comes complete with a personal residence concierge. Priority privileges include a complimentary one-hour guided Niseko Village mountain orientation for advanced to expert level skiers and a welcome by instructors at your doorstep for any private ski or snowboard lessons booked during winter while during summer, golfers or families can take advantage of either complimentary rounds of golf at two renowned courses or enjoy Super Passport tickets at Pure, an activity and adventure park within Niseko Village.Go back to the e-newsletter