Q: We are landlords and have many transactions with different people. Sometimes, we take a key money from others to rent them a commercial store, whether used by heirs or others, under an agreement between the deputy of major heirs and the guardian of the minors. Similarly, we may give key money to a tenant in order to have a store of others that he leases. We ask him to give up his tenancy in return for a fixed sum agreed upon. Thus, a tenant leaves the decorations, air conditions, telephones, lights, and other enhancements, movable or immovable, made in the store.
The key money paid for giving up the tenancy is regarded as compensation for
these movables, using the store, remunerations for damage and expenses incurred by moving goods from one place to another. For many decades, the traders throughout
the Saudi Arabian Kingdom
are accustomed to these procedures of dealing. Yet, one of the heirs heard that paying the key money is unlawful. We were about (Part No. 15; Page No. 92) to pay key money to the tenant of a store when we suspended the dealing until we know the legal decision in this regard. Indeed, we do not want to indulge in any forbidden transactions. However, we do not want to miss any lawful opportunity that may benefit the minors in particular and the other heirs as well. We wish Your Eminence will give us a Fatwa (legal opinion issued by a qualified Muslim scholar). May Allah grant you the best reward for what you do for Islam and Muslims, and protect you from any evil.
A:
If someone rents property; for example a house, an apartment, or a store for a period of time, he may re-rent it to another tenant for the remaining time before his tenancy is over in return for a higher or lower rent without prejudice. If his tenancy is over, he is not entitled to rent this property to any one except with the owner's consent. Doing so is an act of devouring the wealth of people unjustly, and the money he receives, whether little or much, is ill-gotten gain. After his tenancy is over, the utilities of the property are under the control of the owner alone and no one has the right to dispose of them except with his consent. With regard to the furniture, decorations, lights, air conditions, and so on which are purchased by the tenant of the store, they may be waived in return for a set payment agreed by the owner or the new tenant with the old tenant. In this case, this payment is not regarded as key money, but rather a price of selling the things owned by the tenant. (Part No. 15; Page No. 93) If the owner or the new tenant does not want to purchase them, the old tenant has to move them until his tenancy is over. May Allah grant us success. May peace and blessings of Allah be upon our Prophet Muhammad, his family and Companions.
The key money paid f...
