A person has a building that he rents out; is there zakah on it?

The questioner : This questioner, Honorable Shaykh, says: A person has a building that he rents out; is there zakah on it?

The Shaykh : Praise be to Allah, Lord of the worlds, and I send prayers and peace upon our Prophet Muhammad, and upon his family and his Companions, and upon those who follow them in excellence until the Day of Judgment. Buildings prepared for rental do not have zakah on them. Rather, the zakah is on their rent if a lunar year has passed since the contract.
Yes, if a person buys and sells these buildings while also renting them out, then zakah becomes obligatory on him on the value of these buildings and on their rent as well. Accordingly, the criterion in this matter is that whatever buildings a person prepares for rental, for residence, or the like, there is no zakah on them.
But if he rents them out, the zakah is on their rent. As for one who is a real estate dealer, buying and selling properties such as buildings and others, he owes zakah on their value. When the lunar year has passed, he must estimate the value of these buildings and pay out one-fifth of a tenth of it. This is because trade goods do not have zakah on them unless he prepares them for trade. As for what he prepares for development and exploitation from trade goods, there is nothing in it, meaning there is no zakah on it, but the zakah is on its rent. Yes. May Allah bless you.