# Abdur Rahman ibn Yusuf Mangera – Simplified Zakat Guidance Rental Properties

The speaker discusses how rentals and rental properties are different from selling properties. The rental properties are purely for keeping a property and not for resale, while the rental properties are for renting and not for selling properties. The speaker emphasizes that rental properties are only paid once a year and not on the value of the property until the day it arrives.
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Bismillah R Rahman r Rahim. So today I want to talk about zakat

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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remember, the garden rental properties is only paid on the

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

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

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

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

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

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

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

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

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

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

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with anything else in terms of rental

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