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Is there zakah on a house rented out to a tenant?

Answered according to Hanafi Fiqh by Askimam.org

I have two questions pertaining to paying zakat on Property.

Question #1: I own a shop which is rented out. This rent is the sole earning of my family. How do i pay zakat? Do i pay zakat on the market value of the shop? or do i pay zakat on the value of the rent received?

Question #2: I have purchased a property for the sole reason of renting it out when it is developed. At the moment the property is under construction and i am paying quarterly installments and the property is not in my possession. How do i Pay Zakat? Do i pay Zakat on the market value of the property or do i pay zakat when i have possession of the property? Should the Zakat be on the market value of the property or on the rental income i will generate??

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu alaykum wa-rahmatullāhi wa-barakātuh.

1) In principle, there is no zakah on a personal property which is not acquired specifically for reselling.[1] In the inquired situation, zakah will be due on the rental income.[2] However, this is only if one possesses the amount of nisaab (including the rentals) and his liabilities/debts do not exceed his assets.[3]

2) There is no zakah on the property under construction.[4] Zakah will only become binding after one earns rental income from the property with the proviso as explained in the answer above.[5]

And Allah Ta’āla Knows Best

AbdulMannan Nizami

Student Darul Iftaa
Chicago, IL, USA

Checked and Approved by,
Mufti Ebrahim Desai.

www.daruliftaa.net


[1] فلیس فی دور السکنی۔۔۔زکاة

[الفتاوی الہندیة، کتاب الزکاة، ج۱، ۱۷۲، رشیدیة]

[2] [فتاوی رحیمیة، کتاب الزکاة، ج۷، ص۱٦١، دار الاشاعت]

[فتاوی عثمانی، کتاب الزکاة، ج۲، ص٤٧، مکتبة دار العلوم کراچی]

[امداد الاحکام، کتاب الزکاة، ج۲، ص۲۸، مکتبة دار العلوم کراچی]

[3] [فتاوی محمودیة، باب زکاة العروض، ج۹، ص٤٢٥، فاروقیة]

[4] (قوله: المحتاج إليها إلخ) إنما قيد ابن ملك بذلك لأنه أراد بيان الحوائج الأصلية كما قدمناه عنه. أما كلام المصنف هنا فلا حاجة إلى تقييده بذلك، وكأن الشارح أراد أن قوله: ولا في ثياب البدن محترز قوله عن حاجته الأصلية لتقدمه، فقيد بذلك وجعل المحتاج إليها من محترزات القيد الذي تعده وهو قوله نام، ولو تقديرا مراعاة لترتيب القيود تأمل (قوله وأثاث المنزل إلخ) محترز قوله نام ولو تقديرا، وقوله ونحوها: أي كثياب البدن الغير المحتاج إليها وكالحوانيت والعقارات (رد المحتار، ج 2، ص 265، سعيد) 

[5] Ibid

This answer was collected from Askimam.org, which is operated under the supervision of Mufti Ebrahim Desai from South Africa.

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