Endowment: Endowment Rent Below Market Value — Permissibility Issue

Practical Laws of Islam as per the teachings of Imam Khamenei

Endowment: Endowment Rent Below Market Value — Permissibility Issue

English:

Question #1992:

A person dedicated the proceeds of his property to be spent, by way of endowment, in certain charitable avenues, such as the provision of financial help to the descendants of the Prophet (S.A.W.) and holding commemorative assemblies. Now, even with the higher rate of returns from the rent of the property, some interested parties insist on offering less rent than the market price for cultural, political, social, or religious reasons or because of the unfavorable financial position of potential tenants. Has the Endowments Department the right to lease the endowment as a going concern for less than the market price?

Answer #1992:

It is obligatory on the trustee and the officials of the Endowments Department to act in the interest of the endowment when renting the property to potential tenants and agreeing on the rent. However, there is no objection to renting the property at a discounted price with due regard to the special circumstances of the tenants, or because of the importance of the work being conducted on the rented premises, so that it should eventually serve the purpose of the endowment. Otherwise, it is not permissible.

-Imam Khamenei, Practical Laws of Islam, Importance and Conditions of Endowments