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
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.
❖ 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).
"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.
Such agreements should be avoided, as they contradict Islamic financial ethics and may involve elements of ribā.
وَاللّٰهُ أَعْلَمُ بِالصَّوَابِ
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
