Investing tenant’s deposit into an interest-bearing account
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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