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