Abdur Rahman ibn Yusuf Mangera – Simplified Zakat Guidance Rental Properties

Bismillah R Rahman r Rahim. So today I want to talk about zakat

on rental properties. A person has a property that he rents. So

there's one he lives in, there's another one that they rent out, or

he's got series of properties, or they've got a commercial property

that they rent out. A lot of people are wondering generally

about how to basic out on that. And some people think that

actually, you have to take the value of the property and pay

zakat on that. Remember, when it's a rental property, the idea is

that you're going to keep it to rent out, it's purely for that

purpose. It's not for resale. Now, even if you have an idea that if

in the future, one day, I get a good price and the price, the

price becomes better than I will sell it. That's besides the point,

if your primary purpose of purchasing it when you purchased,

it was not for selling it for resale immediately, but it was for

rental or for use and maybe resell. So if it's for rental or

use or whatever, then there's no zakat on the value. I just want to

clarify that if you have a rental property, and your intention of it

is not expressively to sell it from the time you purchased it,

then as most people just have rental properties, then there is

only zakat on the proceeds of it even then, the way you're going to

deal with it is that your monthly rents or yearly rents whatever

comes you will use that to spend and so on then the day that yours

occurred years ago that is due, you will see what retained assets

you have from there what retained money you have from there. So you

don't even pay it's not like income tax where every bit of

rental you receive you will have to pay this percentage No, you

just it's like another income. It's just like a salary. So that's

how you treat it then the day your account comes whatever you have,

so if I am collecting rent of 20,000 a year for example, but

I've spent five or 7000 of that, but on my record, they mashallah

I've got maybe 15 or 13,000 pounds still saved from the rental

income. That's just like I've got it from my any other income

source. So I will have to pay zakat on that just as I would have

to do it. If I had retained salary afterwards. Whatever I've spent

even a day before, then I don't have to pay zakat on that. So

remember, the garden rental properties is only paid on the

retained income of it on your zakat date once a year, not on

every bit that you receive and not definitely not on the value of it

either. So inshallah that makes it clear on rental property. And

likewise on rental cars. If you've got a rental car business, it'd be

the same thing. You do not pay on the value of the cars because

you're not selling cars. Yes, you may sell a car after it's done its

use it's done. It's three years that's a different issue. Even

then, there's no zakat on on there until you actually receive the

money and then your day of zakat comes and then whatever you pay

whatever you have on that day that is what you will pay on. That's

with anything else in terms of rental