10% rent increase is exponential, causing inflation. Greed for wealth, materialism is making the rich, richer and the poor, poorer. Islam teaches us to share, care and love.
With the name of Allah, most Beneficent, most Merciful
Assuming that there are ten people living in an area where there are ten properties. If a wealthy man amongst the ten people buys five properties then the value of the remaining five properties escalates rapidly because there will now be nine people wanting to buy five properties and they will compete with each other, resulting in the value of the properties escalating. This is how it is today.
Inevitably, some of the people would have to rent from those people that have many properties. When a person rents then he has to sign a lease agreement with the landlord. The landlord will most likely demand a 10 percent increase every year to allow for inflation.
This 10% deviously creates the impression that the increase is going to be a fixed, but in reality it’s very far from that. If this 10% increase is compounded, like in most cases, then the increase is actually increasing.
The following is an actual example based according to the receipts of a tenant of a one bedroom flat. In 1987 he paid R233 PM (two hundred and thirty three rands). His increase for the next year was going to be R23.00. In 2007, twenty years later his rent accumulated to R1165.00 PM. This is the result of an increase of about 9% compounded every year. His next increase was R116.00. When he started off, his increase was R23.00 and 20 years later his increase was R116.00.
Projected, In another 20 years time he would pay R5990.00 PM. In the first 20 years his rent increased by a total of R932.00. In the next twenty years his rent is going to increase by a total of RR4825.00. It’s plain to see that the increase is exponential (getting bigger all the time) and it just not practical. A time would come when the increase would be ridiculous and impossible.
How is such a stupid, ridiculous practice allowed to be practiced today? Makes no sense.
Some will argue that salaries will also increase by 10% and people will still be able to afford it. This is not totally true because a person earning ten thousand would get an increase of one thousand while a person earning two thousand would only get an increase of two hundred. This is a difference of R800.00. This would result in the rich getting richer and the poor getting poorer.
Again: how is such a stupid, ridiculous practice allowed to be practiced today?
And you know what… the person that’s charging the rent is going to be on time with his rent increases and He is going to get it, (cast in stone), whilst the wage increase is another story. The ‘boss’ is going to delay the wage increase to the employees and he is going to push for a lower wage increase, giving all sort of excuses. (Written on sand).
The greed for wealth is making people cruel and selfish. As Muslims we can make a difference. Allah SWT instructs us to be caring, sharing and kind. If we do have wealth then we are asked to spend it in charity.
“Believe in Allah and his Apostle Sallallahu Alayhe Wasallam and spend (in charity) out of the substance whereof he has made you heirs.” Sura Hadid 57:7
When the injunction to spend was given to the people they asked the Prophet Sallallahu Alayhe Wasallam to tell them how much of their wealth they must spend. Allah revealed the following verse:
“They ask thee how much they are to spend: Say “What is beyond your needs.” Sura Bakara 2:219
We must spend the extra money that we have, that which is beyond our needs. We must still lead a simple life and spend the extra in Allah’s way. When they asked the Prophet Sallallahu Alayhe Wasallam to tell them how to spend their money the following verse was revealed:
“Say: Whatever wealth you spend that is good, is for parents and family and orphans and those in want and for the wayfarer and whatever you do that is good, Allah knows it well.” Sura Bakara 2:215
Note: Allah asks us to spend our money on people, starting from those that are closest to us. Coincidentally spending in good deeds is even higher than that of prayer.
The Prophet Sallallahu Alayhe wasallam has said: “There is no envy except for two persons: One whom Allah has given knowledge according to which he conducts himself and teaches it to people and One whom Allah has given wealth and he spends it in good deeds. Bukharie-Muslim-Ihya Ilm id deen
Islam is just not theory. There were practical examples set by the Prophet Sallallahu Alayhe wasallam and his companions. When the Muslims migrated from Mecca to Medina, the people of Medina shared half their properties with a Meccan. Muslims cared for one another and they helped each other. The Prophet Sallallahu Alayhe wasallam has said that service to humanity is service to Allah.
The paradox of chasing money Is that no matter how much we have of it we will still chase for more. Look around and you would see plenty examples. There is no peace and happiness in this. If we want happiness and contentment then we have to stop chasing after money. END.
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