Darul Ifta Ibn Masood

Investing tenant’s deposit into an interest-bearing account

· 16 Rajab 1445 AH1 min readEnglish

Question

If one has a rental property and the non-Muslim tenant requests that his deposit be placed in an interest-bearing account, which based on feedback from property agents, is his right according to the Housing Act, will it be permissible to sign such an agreement as the lessor?

Answer

It will not be permissible to do so as this is tantamount to assisting in the disobedience of Allah Ta’ala. The Quraan Sharif categorically states, “And do not assist is acts of sin and transgression.” [Maa’idah Verse 2] The Muslim landlord’s lease agreement should state that the tenant’s deposit will be kept in a non-interest-bearing bank account which will be returned on vacating the premises if found to be in order. In conclusion, it will not be permissible to sign the agreement as the lessor.

Answered by
Mufti Mohammed Desai
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Source: Darul Ifta Ibn Masood — https://fataawa.co.za/investing-tenants-deposit-into-an-interest-bearing-account/
Fatawa SA: https://fatawa.co.za/fatwa/ibnmasood-29815

People also ask

What are the rules for rental deposits?

“Initially, the deposit is a trust (امانة) in the possession of the landlord; therefore, he is not permitted to use it. However, due to common practice and custom (عرف), the landlord uses it with the implicit (دلالة) permission…”

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