One of my friends has hired a house on deposit Rs. 6 lakh and rent Rs. 100/- only and maintenance extra. If my friend doesn’t give 6 lac rupees as a deposit and wish to hire without deposit, then rent will be Rs. 7000/- per month instead of Rs. 100/-. He has been using the house since 3 years with this condition. Now he thought that he should know that it is permissible or not in Islam? If not allowed then what should be done as he has used the house for 3 years at this condition. Your prompt response on above is highly appreciated.
بسم الله الرحمن الرحيم
(Fatwa: 22/18/SD=1/1439)
Paying more amount as deposit and giving less rent of the house is tantamount to benefit from debt which is unlawful as it is interest. In the question mentioned above if you are staying on the rent of 100 rupee monthly for three years by paying six lakh deposit amount then you should ask the owner to forgive the standard rent of three years and in future deal with him on the basis of standard rent. If he does not forgive you then it shall be mandatory for you to pay the standard rent of the house whether you get it deducted from the deposit amount or leave the deposit amount with him and pay the rent separately.
Allah knows Best!
Darul Ifta,
Darul Uloom Deoband