The Book ISLAMIC LAWS

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Rules regarding lease/rent

2181. The person who gives something on lease, as well as the person who takes it on lease, should be adult and sane, and should be acting on their free will. It is also necessary that they should have the right of discretion over the property.
Hence, a feeble-minded person who does not have the right of disposal or discretion over his property, his leasing out anything or taking anything on lease is not valid. The same applies to a bankrupt person, in the wealth over which he has no right of discretion. Of course, such a person can give himself for hire.

2182. A person can become the agent of another person and give his property on lease, or take some property on lease, on his behalf.

2183. If the guardian of a minor gives his property on lease, or makes him the lessee of another person, there is no harm in it. And if some period after the child's Bulugh is also included in the period of lease, the child can cancel that included part of the lease after his becoming baligh, even if the inclusion of that period after the child's Bulugh was in his interest.
But if the inclusion was based on some religious grounds, and excluding it would be against Shariah, and if the leasing was done with the permission of the Mujtahid, then the child cannot cancel the lease after becoming baligh.

2184. A minor child who has no guardian, cannot be hired without the permission of a Mujtahid. And if a person does not have access to a Mujtahid, he can hire the child after obtaining permission from a M'omin who is 'Adil.

2185. It is not necessary for the lessor and the lessee to recite the formula in Arabic. In fact, if the owner says to a person: "I have leased out my property to you", and the other replies: "I accept it", the lease contract is in order. Also, if they do not utter any words, and the owner hands over his property to the lessee with the object of leasing it out, and lessee also takes it with the intention of taking it on lease, the lease contract by such conduct is in order.

2186. If a person wants to be hired for doing some work without reciting the formula, the hire contract will be in order, as soon as he starts doing that work.

2187. If a dumb person makes it known with signs that he has taken or given a property on lease, the lease contract is in order.

2188. If a person takes a house, shop or room on lease, and the owner of the property imposed the condition that only he (the lessee) can utilize it, the lessee cannot sublet it to any other person for his use, except that the new lease is such that its advantage devolves on the lessee himself, like, if a woman takes a house or a room on lease, and later marries, and gives the room or house on lease for her own residence to her husband.
And if the owner of the property does not impose any such condition, the lessee can lease it out to another person, but, as a precaution, he should seek the permission of the owner before giving it on lease. And if he wishes to lease it out for a higher amount in cash or kind, he can do so, if he has carried out some work on it, like, white washing or renovation, or if he has suffered some expenses in looking after the property.

2189. If a person who is hired on wages, lays down a condition that he will work for the hirer only, he (the hirer) cannot lease out his service to another person, except in the manner mentioned in the foregoing rule. And if the hired person does not lay down any such condition, the hirer can lease out his services to another, but he cannot charge more than the agreed wage for the hired person. Similarly, if he himself accepts employment and then hires someone to do the task, he cannot pay him less than what he will receive himself, unless he joins that hired person in completing some of his work.

2190. If a person takes or hires something other than a house, a shop, a room a ship, and a hired person, say, he hires a land on lease, and its owner does not lay down the condition that only he himself can utilise it, and if the lessee leases it out to another person on a higher rent, it will be a matter of Ishkal.

2191. If a person takes for example, a house or a shop on lease for one year, on a rent of one hundred rupees, and uses half portion of it himself, he can lease out the remaining half for one hundred rupees.
However, if he wishes to lease out the half portion on a rent higher than that on which he has taken the house, or shop on lease, like, if he wishes to lease it out for hundred and twenty rupees, he can do it only if he has carried out repairs etc. in it.