Investing in an apartment complex where rentals are shared equally
Question
Please advise if the following form of investment is permissible.
We purchase a two bedroom apartment in a complex which belongs exclusively to us. Nine other people also purchase two bedroom apartments in the complex. All ten of us then enter into a partnership and agreement (with an agent handling the entire portfolio) that we will all hand over our apartments to the agent for rental. However, the proceeds at the end of the month will be shared equally in the partnership among all ten of us, irrespective of whose apartment was leased out more in that period.
Will such a partnership agreement be permissible and valid?
Answer
No, it is not correct. This investment is not shariah compliant.
And Allah Ta'ala (الله تعالى) knows best.
- Answered by
- Mufti Ebrahim Salejee (Isipingo Beach)
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