Hiring and Renting

Rental based on percentage of turnover

Q: Is it permissible for the lessor to charge the lessee a rental based on his turnover in the case where they fix a ceiling for the maximum rental and they are both pleased with this type of agreement? Some people say that it is permissible, even though the rental is not fixed. They compare this to the case where one hires a rep to sell one’s merchandise and pays him a commission based on the sales he does. Just as his wage is not fixed, but is determined through his total sales, similarly determining the rental of a leased property through the turnover should be permissible. Is this view correct?

Fixing a ceiling in turnover clause rental agreement

Q: I read the fatwa regarding rental based on percentage of turnover being impermissible. I would like to query further that in the case where the landlord fixes a maximum amount for the rental, so that in the event of the turnover being a very large amount, the rental will not surpass the ceiling that has been fixed for the rental, will the ruling change in anyway? Most commercial properties work in this way and many tenants request this type of an agreement and are pleased with it.

Installing an ATM machine on one’s premises

Q: Your answer on installing an ATM refers : "since it is possible for one to withdraw interest bearing loans through this medium, it will not be permissible to install an ATM on one’s premises as one will be aiding in the sin of riba (interest)."

Question: 1) Will it not fall in the category of having a dual purpose as it is possible to withdraw halaal savings also. The property owner cannot be responsible for someone that uses the ATM for a wrong purpose similar to the sale of grapes?

2) If the illat is "the possibility of withdrawing interest bearing loans" then till point credit card machines should also be impermissible as a person whose account is already in overdraft is in fact paying by using "interest bearing loans " irrespective of using the budget or straight option of payment.

Lease agreements

Q: Please advise on lease agreements:

1. Is it necessary for a formal lease agreement contract to be in conformity with the Shariah? I understand that any faasid, baatil, or haraam conditions made compulsory by the Government will be excused.

2. Also, is it possible that on account of a lease agreement with faasid, baatil, or haraam conditions, the rent the lessor receives will be haraam money?

Avoiding disputes

Q: I have rented a flat for my family in Dubai. But now my family has moved to USA So now I want my flat to sublet someone interested. As per the original contract letter, it has been clearly mentioned that I cannot sublet my rented flat to anyone else under any circumstances. So Please let me know that if I sublet my flat to anyone else without informing or taking permission from the original flat owner; would I be considered a Munafiq?

Charging the tenant a fixed rent

Q: Is it permissible to include in a lease agreement with a commercial tenant that they will be responsible for the following:

1) Monthly municipal rates which will be billed by the Municipality to the landlord. These charges will be passed on to the tenant.

2) If at any time during the lease agreement there are any increases by the municipality in rates, the tenant will also be liable for such increase.

Sharing a hotel room

Q: A hotel lets out its rooms on a per person charge basis. Zaid books a room for three nights on the basis of one person staying and accordingly only pays for one person. Later, he decides to share the room with his brother, Amr. Zaid claims that he is entitled to the use of any amount of water, lights etc. when he paid for one person, so sharing the use of these facilities with Amr is in actual fact an extension of the benefits that Zaid is entitled to. Is it permissible for Zaid to do this?