He was asked:
A man leased endowed properties, but demand for occupying them declined, and he had this documented in a report by experts. May the administrator reduce his rent if he considers this to be in the endowment’s interests? If he grants a reduction, may he recover the amount from the tenant once the lease expires? May those entitled to the endowment’s income object to the administrator’s action on this account?
He replied:
Praise be to Allah. If someone leases premises whose benefit lies in hiring them out to the public—such as a bathhouse, an inn, a commercial complex, or the like—and their customary benefit diminishes, then the tenant’s rent is to be reduced in proportion to that loss of benefit. This may occur, for example, when the people living nearby move away and customers become fewer because of fear, devastation, relocation by someone in authority, or similar circumstances. The reduction applies whether the administrator and the endowment’s beneficiaries approve or object. The amount remitted may not subsequently be recovered from the tenant, provided the reduction was no greater than the loss of customary benefit. And Allah knows best.