Fatwaa ID: 1679

Question:
Assalamualaikum

I have a property which is for renting out. An agency contacted me and said they will take the flat from us on monthly rent and then lease it to others on a yearly basis. May be they are taking a lumpsum amount and putting it in the bank and take interest from it as their profit.

Please let me know if this is permissible for me.

Answer:
In the Name of Allaah, the Most Gracious, the Most Merciful.
As-salaamu ‘alaykum wa-rahmatullaahi wa-barakaatuh.

We understand that you are renting out your property to an agency on a monthly basis. They will then sublease it to someone else on a yearly basis. That is permissible provided that you permit it. If they are charging more than what they are paying you, then it will be necessary for them, Islamically, to make an improvement or add some additional value to the property. However, that obligation is on them, not you. In terms of how they will pay you and what they will do with the funds they receive from their lessee, that is not your concern not your responsibility. In the enquired situation, you may rent out your property to the agency in question.

And Allaah Ta’aala knows best.
Mufti Muajul I. Chowdhury
Darul Iftaa New York
https://askthemufti.us/

02/07/1445 AH – 08/24/2023 CE | AMG1-4083

وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين

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