His third question says: If a man has a rented-out house other than the one he lives in, does he pay zakah on the value of the house or on what he receives from its rent?
Machine translationRead the Arabic original
The questioner : His third question says: If a man has a rented-out house other than the one he lives in, does he pay zakah on the value of the house or on what he receives from its rent?
The Shaykh : If the rented-out house is prepared for leasing and exploitation, there is no zakah on its value; rather, zakah is due on the rent it generates if a lunar year passes from the date of the contract. If a lunar year does not pass from the date of the contract, there is no zakah on it either. For example, if he rents out this house for ten thousand, say, and receives five thousand at the time of the contract and spends it, then receives five thousand at the middle of the year and spends it before the year is complete, he owes no zakah in that case because a lunar year has not passed for him; a lunar year has not passed for this money.
The questioner : Yes.
The Shaykh : As for if the house was prepared for leasing, but he originally bought it for trade, intending to wait for profit from it, but he said, "As long as it has not been sold, I will rent it out," then in this case, he must pay zakah on the value of the house, and also on its rent if a lunar year passes, as we mentioned a moment ago. Zakah is only due on the value of the house in this case because he intended it for trade, not for keeping and exploitation. Anything you intend for trade and earning has zakah due on it, based on the saying of the Prophet (peace and blessings be upon him):Sahih al-Bukhari 1 And the one who has wealth intended for earning only intends its value, not its substance... its value is in dirhams and currency, and zakah is obligatory on dirhams and currency. Accordingly, the one who intends trade and exploitation with this house is obligated to pay zakah on the value of the house and on its rent if a lunar year passes from the date of the contract.
The questioner : Yes.
The Shaykh : If the rented-out house is prepared for leasing and exploitation, there is no zakah on its value; rather, zakah is due on the rent it generates if a lunar year passes from the date of the contract. If a lunar year does not pass from the date of the contract, there is no zakah on it either. For example, if he rents out this house for ten thousand, say, and receives five thousand at the time of the contract and spends it, then receives five thousand at the middle of the year and spends it before the year is complete, he owes no zakah in that case because a lunar year has not passed for him; a lunar year has not passed for this money.
The questioner : Yes.
The Shaykh : As for if the house was prepared for leasing, but he originally bought it for trade, intending to wait for profit from it, but he said, "As long as it has not been sold, I will rent it out," then in this case, he must pay zakah on the value of the house, and also on its rent if a lunar year passes, as we mentioned a moment ago. Zakah is only due on the value of the house in this case because he intended it for trade, not for keeping and exploitation. Anything you intend for trade and earning has zakah due on it, based on the saying of the Prophet (peace and blessings be upon him):
The reward of deeds depends upon the intentions and every person will get the reward according to what he has intended.
إنما الأعمال بالنيات، وإنما لكل امرئٍ ما نوىThe questioner : Yes.