Question:
Is it permissible to rent out a flat at a lower monthly rent in exchange for receiving a larger advance payment?
Answer by:
Shaykh ‘Abd al-Wakeel Nasir ḥafiẓahullāh
✿ Shar‘i Verdict: Not Permissible
The commonly practiced arrangement in the market—where a larger advance amount is taken in exchange for reduced monthly rent—is not considered permissible from a Shar‘i perspective.
✿ Reasons for Impermissibility
❖ The advance amount taken by the property owner is Islamically considered a trust (amānah).
— Therefore, its use for personal benefit is not permissible unless explicitly agreed upon in a lawful structure.
❖ Reducing the rent in exchange for a higher advance essentially becomes a case of “money generating benefit over money”, which resembles interest (ribā).
✿ Supporting Hadith
“Every loan which brings a benefit is ribā (interest).”
This principle is cited by scholars to establish that conditional financial gains over loans fall under usury.
✿ Conclusion
Such agreements should be avoided, as they contradict Islamic financial ethics and may involve elements of ribā.
وَاللّٰهُ أَعْلَمُ بِالصَّوَابِ
