Assalamualaikum, Encik Samad . I heard you have land for rent because I want to start a small goat farm
Waalaikumsalam, Alif. Yes, I have land for rent. How much space do you need, and what are your plans for the goat farm?
Alif visits Encik Samad's land
I need about 2 acres for my goat farm. Initially, I'll have 20 goats and expand as the business grows.
Alright, alright. That sounds doable. How much are you willing to pay for the rent?
Alif visits Encik Samad's land
I'm hoping for a reasonable price since there's no written agreement. How about RM500 per month?
Well, alright. RM700 it is, then.
RM500 is too low. The market rate is RM 800 per month, but I can offer it to you for RM700 since you seem nice.
Alif sets up his goat farm on the rented land, investing his savings in buying goats and building necessary infrastructure.
A few months later, Encik Samad raises the rent.
Alif, I've reconsidered the rent, and the land's value is higher than what you're paying. I'm increasing it to RM1000 per month.
But Encik Samad, we had agreed on RM700 per month. There was no written agreement, but a deal is a deal, right?
Alif faces financial strain.
Ah, you know how things are, young man. The market has changed, and I can get a better deal now. Take it or leave it.
We'll see about that. For now, just pay the new amount.
Fine, I'll pay the increased amount for now, but we need to make a proper written agreement moving forward.
As the rent increases, Alif starts to struggle to keep up with the payments. He realizes that the higher rent is cutting into his profits, making it difficult to expand his business.
Alif decides to seek legal advice to understand his rights as a tenant.
Without a written agreement, establishing the terms of your tenancy can be tricky. Nevertheless, you can negotiate with Encik Samad and ask for a written agreement in the future.
I'll do that. I don't want to be taken advantage of anymore
Encik Samad, I haven't had a written agreement, but I've been responsible in paying rent on time. It's unfair to keep increasing the rent without a proper agreement. Let's draft a written agreement with clear terms and conditions.
Alif gathers his courage and confronts Encik Samad about the situation.
Fine, fine. I suppose it won't hurt to have something in writing. But I won't lower the rent.
Alif and Encik Samad, assisted by a lawyer, create a written agreement setting the terms of the tenancy and rent amount, which both parties sign.
This written agreement will protect both of your interests and avoid any misunderstandings in the future.
I can't believe I had to agree to this written agreement. Well, at least the rent is fixed now.
With the written agreement in place, Alif gains some stability and continues to work on his goat farm. He can now plan and budget effectively.
Thank you for understanding, Encik Samad. It's important to have clarity in any business arrangement.
The story concludes with a lesson about the importance of having written agreements to avoid misunderstandings and disputes in business dealings. It emphasizes the significance of protecting one's rights and interests through legal documentation. Islamic economics has also educated us about the importance of written agreements in rental-purchase matters for the benefit for all parties.
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