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Rental Based On Percentage Of Turnover

Question

Is rental based on business permissible? 

Is it permissible for the property owner to charge rent based on the amount of business I do in my shop? 

E.g.:If sales is R1000,000.00 per month, then rent is 10,000.00 fixed. However, if sales goes up to say R3000,000.00 per month then rent is 10,000.oo plus 5% of extra 2000,000,00. sales. 

Is this permissible in Islam? 

if it does not lead to a dispute, then is it permissible?

Answer

1)    In a lease agreement, it is necessary that the rent be fixed. If the rent is not fixed but fluctuates, it will not be permissible. Therefore, the scenario mentioned in the query is not permissible, since the rent is not fixed as the turnover will be different for each month. 

2)    Even though this transaction will not lead to a dispute, it will be impermissible. The reason is that there are many examples of business transactions where despite the element of dispute being cast aside by a clause in the contract, Shari’ah has ruled it as impermissible. Therefore, apart from the transaction not leading to a dispute, one needs to see whether such a transaction is intrinsically acceptable in Shari’ah or not. 

It is clear that this condition is unfair to the lessee. Although the lessee agrees and accepts the conditions because he is in need of the premises, he will burn from within when he has to pay more based on the increase in turnover; whereas, if he suffers losses for the month, the base rental remains uncompromisable. In many cases, he will even try to conceal his true turnover from the lessor so that he may be able to escape his unfairness. This encourages him to lie. Accepting the condition and agreeing to pay does not mean that he is happy with the condition, as we find that the one who takes an interest-bearing load from the bank in desperation accepts the condition of interest and agrees to pay, yet he is not happy.  

In conclusion, attaching this type of condition and not fixing the rental only tempts and encourages people towards dishonesty by lying and concealing their true business figures.

Checked and Approved By:

Mufti Muhammed Saeed Motara Saheb D.B.

References

وشرطها كون الأجرة والمنفعة معلومتين لأن جهالتهما تفضي إلى المنازعة

قال الشامي : قوله ( كون الأجرة والمنفعة معلومتين ) أما الأول فكقوله بكذا دراهم أو دنانير وينصرف إلى غالب نقد البلد فلو الغلبة مختلفة فسدت الإجارة ما لم يبين نقدا منها فلو كانت كيليا أو وزنيا أو عدديا متقاربا فالشرط بيان القدر والصفة وكذا مكان الإيفاء لو له حمل ومؤنة عنده وإلا فلا يحتاج إليه كبيان الأجل ولو كانت ثيابا أو عروضا فالشرط بيان الأجل والقدر والصفة لو غير مشارا إليها ولو كانت حيوانا فلا يجوز إلا أن يكون معينا بحر ملخصا(شامى/ج6/ص5)

(‌تَفْسُدُ ‌الْإِجَارَةُ بِالشُّرُوطِ الْمُخَالِفَةِ لِمُقْتَضَى الْعَقْدِ فَكُلُّ مَا أَفْسَدَ الْبَيْعَ) مِمَّا مَرَّ (يُفْسِدُهَا) كَجَهَالَةِ مَأْجُورٍ أَوْ أُجْرَةٍ(الدر المختار/ج6/ص46)

وأما الذي يرجع إلى ما يقابل المعقود عليه وهو الأجرة والأجرة في الإجارات معتبرة بالثمن في البياعات لأن كل واحد من العقدين معاوضة المال بالمال فما يصلح ثمنا في البياعات يصلح أجرة في الإجارات وما لا فلا وهو أن تكون الأجرة مالا متقوما معلوما وغير ذلك مما ذكرناه في كتاب البيوع(بدائع الصنائع/ج4/ص193)

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