Home » Hanafi Fiqh » DarulIftaBirmingham » Is It Permissible To Give a Shop on Rent and Charge the Tenant a Certain Percentage of the Turnover of the Business?

Is It Permissible To Give a Shop on Rent and Charge the Tenant a Certain Percentage of the Turnover of the Business?

Answered by: Shaykh Ahmed Bin Mohamed Umarji

Question:

I have 20 shops, rental is based on turnover, no disputes…

But still, I want to ask you a question

Is it permissible to give a shop on rent and charge the tenant a certain percentage of the proceeds or turnover of the business? For example, 10% of the turnover, so if in December the turnover was £15000, the rent for that month would be £1500.

Is this permissible

In the name of Allah, the Most Gracious, the Most Merciful

Answer:

This is permissible. It will be classified as a partnership where you are providing the space and the other part is bringing the goods and labour. As partners, you may agree on what percentage either party will get.1

Only Allah knows best

Written by Shaykh Ahmed Bin Mohamed Umarji

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham

1 Mukhtasar Al-Quduri, Page 217, Mustafah Publishers

This answer was collected from DarulIftaBirmingham.co.uk, which is run under the supervision of Mufti Mohammed Tosir Miah from the United Kingdom.

Read answers with similar topics: