Renting a house for a low rent and a large refundable advance payment

10-2-2010 | IslamWeb

Question:

AS SALAM ALAIKUM MY HOUSE OWNER WANTS SOME LARGE AMOUNT ( IND RS. 2000000 ) AS REFUNDABLE ADVANCE AND RENT OF RS 1000 PER MONTH FOR WHOLE BUILDING FOR 3 YEARS IAM FREE TO SUBLET THIS BUILDING TO ANYONE OF MY CHOICE FOR 3 YRS. AND THIS 2 MILLION I WILL GET BACK AFTER 3 YRS ONLY AMOUNT I WILL BE GIVING THEM MONTHLY IS RENT OF RS 1000/= IF I SUB LET THIS BUILDING I WILL GET RS 300000 ADVANCE AND RENT OF RS 35000 PER MONTH IS THIS ARRANGEMENT ACCEPTABLE IN ISLAM
Answer:

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad sallallaahu `alayhi wa sallam ( may Allaah exalt his mention ) is His slave and Messenger.

 

Subleasing is permissible, but it appears from the agreement which you mentioned that it includes a loan that results in a benefit (to the lender) and this is not permissible. Ibn Qudaamah may Allaah have mercy upon him said: “It is reported from Ubayy Ibn Ka’b, Ibn ‘Abbaas and Ibn Mas’ood may Allaah be pleased with them that they forbade a loan which results in a benefit. He said: “…If he (the lender) conditions him (the borrower) to rent out his house to him for less than its normal rent or on the condition that he rents the house of the lender for more than its normal rent or on the condition that he gives him a gift or does any job for him, then this is even more forbidden.”

For more benefit, please refer to Fatwa 131411.

Allaah Knows best.

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