We have given apartments for rent. Some times the tenant dose not pay the rent according to the agreed date. Is it ok to take fine? Beacuse if are taking a fine then they will be forced to pay the rent before due date. Will taking fine be riba?
In the name of Allah, Most Gracious, Most Merciful
Assalaamu `alaykum waRahmatullahi Wabarakatuh
It is not permissible to charge a fine on late rental payments.
An alternative is to inflate the rent by 10% and if anyone pays timeously, they will be offered a 10% discount.
And Allah knows best
Mufti Ebrahim Desai
Darul Iftaa, Madrassah In’aamiyyah