Zakah on Real Estate Prepared for Rental

The questioner : Based on that, we move to an important issue: if a person has real estate that he has prepared for renting to people, is zakah due on this real estate? No. No.

The Shaykh : There is no zakah on this real estate, even if it amounts to millions. Rather, zakah is due on its rent if a lunar year has passed. From the time of the contract. For example, a man rented this house for ten thousand. He received the ten thousand after the completion of the year; zakah is due on the ten thousand. Is it due?

Another questioner : Yes.

The Shaykh : Because a lunar year has passed since the contract. And another man rented his house for ten thousand. Five of it was due at the time of the contract. He received it, but he spent it within two months. And five of it was due at the halfway point of the year. He took it and spent it within two months. When the year was completed, I... he had nothing of the rent with him. Is this rent due on him?

Another questioner : No, no.

The Shaykh : Yes, correct. Is zakah due on this?

Another questioner : No. No.

The Shaykh : Why?

Another questioner : Here.

The Shaykh : Because the lunar year has not been completed for it. And the obligation of zakah requires the completion of the lunar year.

Another questioner : My father.

The Shaykh : If the owner of this real estate intends to make a profit and rent it out. For example, if he buys the real estate for demolition. But he says, as long as it is in my hand, I will rent it out. Daily, monthly, or weekly.

Another questioner : Yes.

The Shaykh : In this case, zakah is due on its rent.

Another questioner : In it?

The Shaykh : And zakah is due.

Another questioner : Yes.

The Shaykh : On its substance as well.