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Renting On Heavy Deposit
In my home country there is a concept of renting a place on heavy deposit.
Let say the buying price of the place is 10 Million and if you want in on rent it will cost around 25,000 per month and security deposit of 50,000. In heavy deposit we have to pay around 1 million as deposit and next to nil rent per month. Until the person return that 1 million the house will be in my custody and I can stay in it or give it on monthly rent.
My question is firstly is it allowed to rent such place with nil monthly rent but high deposit and stay in the house?
Secondly if I don’t want to stay and I rent that place and earn 25,000 per month until my 1 million is returned to me. Is this 25,000 will be considered as an indirect interest on my 1 million?
In both the cases the owner of the house has no issue and has given full approval.
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1 Reply
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Renting On Heavy Deposit
updated 2 years, 9 months ago
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In principle, riba is only in loan transactions. All business transactions are inherently permissible as long as there’s no aspect of immorality, injustice, or polytheism in them.
The scheme that as you described is not inherently impermissible, however, each contract must be reviewed individually in order to make sure that the principle shared above is not violated.
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