Abdur Rahman ibn Yusuf Mangera – Simplified Zakat Guidance Rental Properties
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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