Permissibility of Leasing one’s Property

It is completely permissible to rent a house, property, land, shop or any other asset, provided the rules and regulations of an Islamically valid lease are met. There has been a consensus of the Muslim Ummah on this. Only someone called Abu Bakr al-Asam (Allah have mercy on him) objected to its permissibility.

There are many proofs for the permissibility of renting and leasing, for example:

1) Allah Most High says:

“And if they suckle your (offspring), give them their recompense.” (Surah al-Talaq, V: 6)

In the above verse, Allah Most High commands the man who divorces his wife that after the expiry of her waiting period (iddah) he is not obliged to pay her any financial support. However, if she (his ex-wife) breastfeeds the child, it will be permitted for her to take a financial return (ujrah) on her breastfeeding.

2) Allah Most High says:

“It is no crime on you if you seek the bounty of your Lord (during pilgrimage).” (Surah al-Baqarah, V: 198)

This verse was revealed when some of the Companions had asked the Messenger of Allah (Allah bless him and give him peace) regarding trading whilst on Hajj, and more specifically renting out properties.

Abu Umama al-Taymi narrates that I said to Ibn Umar (Allah be pleased with them both): “We rent out things whilst on Hajj, so is our Hajj accepted?” He (Ibn Umar) said: “Do you not make Tawaf of the Ka’bah, do you not come to Arafah, do you not pelt the pebbles and do you not shave your head? Abu Umama says: “We said: why not”. So Ibn Umar said: “A man came to the Messenger of Allah (Allah bless him & give him peace) and asked him exactly what you have asked me. The Messenger of Allah (Allah bless him & give him peace) did not reply to him until Sayyiduna Jibril descended with this verse: “It is no crime on you if you seek the bounty of your Lord”, hence the Messenger of Allah (Allah bless him & give him peace) called him and said: “You are pilgrims” (m: meaning your pilgrimage is accepted). (Tafsir Ibn Kathir, 1/325)

3) Hanzala ibn Qays reports that he asked Rafi’ ibn Khadij (Allah be pleased with him) about renting of land, whereupon he said: “The Messenger of Allah (Allah bless him & give him peace) forbade the renting of land.” I (Hanzala) said: “Is it forbidden (even if it is paid) in gold (dinar) and silver (dirham)?” Thereupon he said: “If it is paid in gold and silver, there is no harm in it.” (Sahih Muslim, no: 1547)

4) Thabit (Allah be pleased with him) said that the Messenger of Allah (Allah bless him & give him peace) forbade share-cropping (muzara’ah) and commanded leasing out the land on rent (for money) and said: “There is no harm in it.” (Sahih Muslim, no: 1549)

5) Once the Messenger of Allah (Allah bless him & give him peace) passed by Sayyiduna Raf’i ibn Khadij (Allah be pleased with him) whilst he was in his garden. The Messenger of Allah (Allah bless him & give him peace) asked him as to whose garden it was, upon which he said that he had taken it on rent. The Messenger of Allah (Allah bless him & give him peace) did not prohibit him from this completely. (See; Bada’i al-Sana’i, 4/174)

6) The Messenger of Allah (Allah bless him & give peace) was sent to this world whilst people (the Arabs) were renting out lands and properties and were taking properties on rent, and he (Allah bless him & give him peace) did not prohibit them. This is considered a form of tacit approval from the Messenger of Allah (Allah bless him & give him peace).

7) There is a consensus of the Ummah on the permissibility of leasing, in that people have been renting since the time of the Companions (Allah be pleased with them) till today without any objection (except for Abu Bakr al-Asam).

8) Moreover, the various transactions of business and trade are based on the needs of people, and people’s need for renting is great due to the fact that not every person is capable of purchasing a land, property or a house to live in, hence there was a need to permit renting out properties and lands.

The above is quite clear on the fact that renting a house or a shop is, without doubt, permissible. The income gained through giving something on rent is completely Halal, provided all the rules of an Islamically valid lease are met.

And Allah knows best