⚖ Renting Property for a Fixed Period Against a Specified Wage: Islamic Ruling
Written by: Imran Ayyub Lahori
In Islamic jurisprudence, it is permissible to rent out any item, including land, for a known period in exchange for a fixed, specified wage. One example of this is leasing agricultural land. However, renting land in exchange for a portion of the yield is not permissible under certain conditions, as clarified by the teachings of the Prophet ﷺ.
“We had more land than others in Madinah. Our practice was to lease land with the condition: ‘The produce of this section will be mine, and that section will be yours.’ Sometimes one portion yielded crops, while the other did not. The Messenger of Allah ﷺ then prohibited us from such an arrangement.”
And in the narration of Sahih Muslim, it is stated:
"فَأَمَّا شَيْءٌ مَعْلُومٌ مَضْمُونٌ فَلَا بَأْسَ بِهِ"
“But if it is something specified and guaranteed, then there is no harm in it.”
(Bukhari: 2332, Kitab al-Harth wal-Muzara‘ah; Muslim: 1183, Kitab al-Buyoo‘)
This means that renting land in exchange for a known, guaranteed benefit (like a fixed amount of silver, gold, or money) is permissible, while uncertainty in benefit or risk of injustice is not allowed.
As found in Sahih Bukhari:
“The Messenger of Allah ﷺ made an agreement with the people of Khaybar to work on the land in exchange for half of the yield.”
(Bukhari: 2285; Muslim: 2896; Tirmidhi: 1304; Abu Dawood: 2959)
This indicates that leasing land for a proportional share of the yield is also permissible under certain conditions, as the Prophet ﷺ himself did so.
On one hand, there are narrations like:
"نهى عن كراء الأرض"
“The Prophet ﷺ forbade leasing of land.”
(Muslim: 1547, Kitab al-Buyoo‘)
And on the other hand, the Companions (رضي الله عنهم) themselves used to engage in such transactions, and even the Prophet ﷺ leased land to the people of Khaybar.
This seeming contradiction is resolved through the explanation provided in the hadith of Rafi‘ ibn Khadij (رضي الله عنه):
“Among all the Ansar, we had the most fields. We used to rent out land by saying: ‘The produce of this part will be ours and that part yours.’ Sometimes one part would produce well and the other would not. The Prophet ﷺ forbade this. But renting it for silver (Dirhams) was not prohibited.”
(Bukhari: 2332; Muslim: 1183)
➤ Permissible: Renting land or anything else for a fixed and known compensation, such as a certain amount of silver, gold, or money.
➤ Impermissible: Leasing land with uncertain or undefined compensation, such as saying: “The yield from this part is mine, and the other is yours” — as this can lead to disparity and injustice.
➤ Permissibility of crop-sharing contracts (e.g., half the produce) is established from the Prophetic practice with the people of Khaybar, provided the terms are clear and agreed upon by both parties.
Written by: Imran Ayyub LahoriIn Islamic jurisprudence, it is permissible to rent out any item, including land, for a known period in exchange for a fixed, specified wage. One example of this is leasing agricultural land. However, renting land in exchange for a portion of the yield is not permissible under certain conditions, as clarified by the teachings of the Prophet ﷺ.
Hadith of Rafi‘ ibn Khadij (رضي الله عنه)
“We had more land than others in Madinah. Our practice was to lease land with the condition: ‘The produce of this section will be mine, and that section will be yours.’ Sometimes one portion yielded crops, while the other did not. The Messenger of Allah ﷺ then prohibited us from such an arrangement.”
And in the narration of Sahih Muslim, it is stated:
"فَأَمَّا شَيْءٌ مَعْلُومٌ مَضْمُونٌ فَلَا بَأْسَ بِهِ"
“But if it is something specified and guaranteed, then there is no harm in it.”
(Bukhari: 2332, Kitab al-Harth wal-Muzara‘ah; Muslim: 1183, Kitab al-Buyoo‘)
This means that renting land in exchange for a known, guaranteed benefit (like a fixed amount of silver, gold, or money) is permissible, while uncertainty in benefit or risk of injustice is not allowed.
Example from the Practice of the Prophet ﷺ
As found in Sahih Bukhari:
“The Messenger of Allah ﷺ made an agreement with the people of Khaybar to work on the land in exchange for half of the yield.”
(Bukhari: 2285; Muslim: 2896; Tirmidhi: 1304; Abu Dawood: 2959)
This indicates that leasing land for a proportional share of the yield is also permissible under certain conditions, as the Prophet ﷺ himself did so.⚖ Addressing the Apparent Contradiction:
On one hand, there are narrations like:
"نهى عن كراء الأرض"
“The Prophet ﷺ forbade leasing of land.”
(Muslim: 1547, Kitab al-Buyoo‘)
And on the other hand, the Companions (رضي الله عنهم) themselves used to engage in such transactions, and even the Prophet ﷺ leased land to the people of Khaybar.
This seeming contradiction is resolved through the explanation provided in the hadith of Rafi‘ ibn Khadij (رضي الله عنه):“Among all the Ansar, we had the most fields. We used to rent out land by saying: ‘The produce of this part will be ours and that part yours.’ Sometimes one part would produce well and the other would not. The Prophet ﷺ forbade this. But renting it for silver (Dirhams) was not prohibited.”
(Bukhari: 2332; Muslim: 1183)
Conclusion:
➤ Permissible: Renting land or anything else for a fixed and known compensation, such as a certain amount of silver, gold, or money.
➤ Impermissible: Leasing land with uncertain or undefined compensation, such as saying: “The yield from this part is mine, and the other is yours” — as this can lead to disparity and injustice.
➤ Permissibility of crop-sharing contracts (e.g., half the produce) is established from the Prophetic practice with the people of Khaybar, provided the terms are clear and agreed upon by both parties.
