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Charging Rent According to the Tenant’s Turnover

Answered as per Hanafi Fiqh by Muftionline.co.za

Q: I read the email on rental based on percentage of turnover. I would like to query further that in the case where the landlord fixes a maximum amount for the rental, that in the event of the turnover being tremendous, the rental will not surpass the ceiling that has been fixed for the rental, will this have any impact on the ruling? Most commercial properties work in this way and many tenants request this type of an agreement.

Bismillaah

A: No, this is not permissible. 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.

And Allah Ta’ala (الله تعالى) knows best.

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)

This answer was collected from MuftiOnline.co.za, where the questions have been answered by Mufti Zakaria Makada (Hafizahullah), who is currently a senior lecturer in the science of Hadith and Fiqh at Madrasah Ta’leemuddeen, Isipingo Beach, South Africa.