Islamic Laws for Renting and Hiring

1. Once you have taken a house on rent on a monthly basis and took possession of it, you will have to pay the rent on the expiry of the month. This is irrespective of whether you lived in it or whether it remained empty. In both cases it is wâjib on you to pay the rent.

2. A tailor sewed a garment for you, a dyer dyed it for you or the washerman washed it for you. After carrying out this work, he brought it to you. He has the right of refusing to hand over the garment to you until you pay him for the job that he has carried out. It is not permissible for you to take it forcefully without having paid him.
   If you asked a labourer to carry a sack of grain for you, he cannot hold back this grain until you pay him for his effort. This is because by his bringing the grain for you, no changes took place in the grain. As opposed to the above-mentioned examples wherein a change took place in the fabric or garment.

3. A person made a condition that you alone should sew this garment, you alone should dye it or you alone should wash it. In such a case it is not permissible to give it to anyone else to do any of the above tasks. But if he did not make this condition, the work could be given to anyone else.

       Rules about Improper Leasing or Hiring Out

1. The following methods of hiring out are regarded as ijârah fâsidah (improper leasing):
   a. At the time of renting a house, the period was not specified as to how long the house will be rented.
   b. The rental was not specified. The person merely occupied the house and began living in it.
   c. The tenant made this condition that he will pay the costs for whatever breaks in the house.
   d. The landlord rented the house on the condition that whatever breaks in the house will have to be repaired by the tenant and that the repairs that he will undertake will actually be his method of payment of the rental. But if the landlord says: "You live in this house and undertake whatever repairs are necessary. There is no rental to be paid." In such a case this is an aariyah (a loan). This is permissible.

2. A person rented a house saying that he will pay $500 monthly. This hiring out will only be valid for one month. At the expiry of one month, the landlord has the right to evict him. If the tenant stays for another month, this hiring out will be valid for one additional month. In this way, a new lease will continue each month. However, if the tenant specified a certain period of time by saying that he will be renting this house for six months or four months (or whatever the case may be), then the leasing will be valid for whatever period he specified. The landlord cannot evict him before the expiry of this period.

3. You asked a person to grind wheat for you and told him to take a certain amount (e.g. half a kilo) of its flour as payment. Alternatively, you asked someone to harvest the crops and told him to take a certain amount of grain from there as payment for harvesting. All this is fâsid (invalid).

4. The rule with regard to ijârah fâsidah is that whatever had been agreed upon will not be given. Instead, he will be given whatever payment is normally made for a particular job. If it is a house, the tenant will have to pay the normal rental. However, if the normal payment or the normal rental is more than what had been agreed upon, then the normal payment or rental will not be given. Instead, he will be paid that which was agreed upon. In short, he will be entitled to receive the amount which is less.

5. The hiring of singers, dancers, tricksters and all other types of frivolities is not valid. All this is absolutely bâtil (invalid). Therefore, no payment will be given for this.

6. A Hafiz-e-Quran was employed in order to stand over a grave for a certain number of days and recite the Quran and send the rewards to the deceased. This is not valid. The Hafiz-e-Quran will not receive any reward nor the deceased. Furthermore, he is not entitled to receive any payment for this.

       Islamic Rules for Mortgages

1. You took a loan of $10 from someone and in order for him to trust you, you kept one of your possessions with him informing him that if you do not trust me, keep this item with you. Once I repay you the $10, I will take my item back. This is permissible. This is known as mortgaging or pawning. However, under no circumstances is it permissible to pay any interest as is in vogue among the merchants and bankers whereby they charge an interest for mortgaging. It is harâm to pay or to accept interest.

2. Once you have mortgaged an item, you do not have the right to ask for it or take it until you have fulfilled your debt.

3. If any one mortgages an item with you, it is not permissible for you to utilise it or take any benefit from it whatsoever, e.g. it is not permissible for you to eat any fruit from the orchard that has been mortgaged, to eat the grain from such a land, to use such money or to live in such a house.

4. If a person has mortgaged a goat or cow, the milk and young ones will belong to the owner. It is not permissible for you to use any of this for your personal purposes. You will have to sell the milk and include the money with the mortgage. Once the person fulfils his debt, you will have to return the mortgaged item together with the money you receive for the milk, and you can deduct the money for whatever it cost you to feed the animal.

5. Once you have repaid part of your debt, you still cannot take back your mortgaged item. Only when you settle your debt in full will you receive your mortgaged item.

6. You took a loan for $10 and mortgaged an item which cost $10 or more. While that item was under his possession, it got lost or disappeared. In such a case, he has no right to demand his money from you nor do you have any right to demand any money for your item which he lost. You have lost your item and he has lost his money. However, if your item was worth $5 and it got lost or disappeared, you will only have to repay $5 and the balance $5 will be deducted.