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Is a 10% increase in rent considered interest?

Answered according to Hanafi Fiqh by TheMufti.com

Q. Respected Mufti Sahib, I need to know that a landlord, who owns a House etc. αnd gave it for rent. During their stay there, the landlord gave the tenant whose renting their house etc. an increase oƒ 10% on the normal rent that they were paying . Eg. If the rent is R3000 αnd after a уear in December due to a 10% increase by owner of the building rent goes to R3350 . I need to know, is the  R350 Riba (interest)?


A. It is permissible for a lessor to have a contract with the lessee to increase the rental amount according to a specific proportion after a specific period of time. Hence, it will be permissible for the lessor to have a contract with the lessee to increase the rental amount to 10% after one year.

In this case, the increase of 10 % after one year will not be considered as Riba (interest).

Allah Ta’ala Knows Best

Mufti Ismaeel Bassa

This answer was collected from TheMufti.com, which is a fatwa portal managed by Mufti Ismaeel Bassa from South Africa.

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