Leasing
Leasing (Ijarah) — Rules of Rental Contracts
📖 The Scene: The First Lease Contract in History — Madyan Thousands of Years Ago
After Moses (peace be upon him) had watered the two women, one of them came to him walking with shyness...
One of the Daughters (to her father Shu'ayb): O father, hire him! The best you can hire is the strong and trustworthy!
Shu'ayb (peace be upon him) (to Moses): I want to marry you to one of my two daughters...
Moses (waiting): ...
Shu'ayb: On condition that you serve me for eight years, and if you complete ten, it will be from you!
The Narrator: This was the first lease contract mentioned in the Quran — remuneration for work, with a defined duration and known conditions!
Definition of Leasing (Ijarah)
📜 Linguistic and Technical Meaning
Linguistically: Al-Ijarah comes from al-ajr (reward), hence the name wage given to remuneration for work.
In legal terminology: A contract for a lawful known usufruct, from a known or described item under guarantee, for a known duration, in exchange for a known compensation.
📋 Elements of Ijara Definition
Contract on a benefit
- •✓ Permissible — no lease for forbidden
- •✓ Known — by description or observation
- •✓ From a known item — like this apartment
- •✓ Known duration — year, month, day
- •✓ For known compensation — 1000 riyals e.g.
Legitimacy of Leasing
From the Quran
📜 Quranic Proofs
﴿One of them said: "O father, hire him! The best you can hire is the strong and trustworthy."﴾
— Al-Qasas: 26
﴿If they breastfeed for you, give them their wages.﴾
— At-Talaq: 6
From the Prophetic Sunnah
📜 Proofs from Sunnah
'Aisha (may Allah be pleased with her) said: "The Messenger of Allah ﷺ and Abu Bakr hired a man from Banu ad-Dil as an expert guide."
— Narrated by al-Bukhari
The Prophet ﷺ said: "Give the worker his wage before his sweat dries."
— Narrated by Ibn Majah
📖 The Story of the Hijra — The First Prophetic Lease Contract
Before the Hijra, the Prophet ﷺ and Abu Bakr (may Allah be pleased with him) prepare for the secret journey...
Abu Bakr (whispering): O Messenger of Allah, we need a guide who knows the way!
The Prophet ﷺ: Hire a man from Banu ad-Dil, an expert guide.
Abu Bakr: But he's not Muslim!
The Prophet ﷺ: Trustworthiness is the criterion. We entrust him with our route.
The Narrator: Thus Abdullah ibn Urayqit, the polytheist, was their guide — because leasing doesn't require the employee to be Muslim!
The Consensus
The Ummah is unanimous on the permissibility of leasing due to people's need — no one can do without the benefit of others.
The Pillars of Leasing
🏛️ The Four Pillars of the Lease Contract
Lessor and lessee
Offer and acceptance
Known and permissible
Known and received
First Pillar: The Contracting Parties
📖 Conditions of the Contracting Parties
① Capacity
- Being of sound mind and discernment
- The contract of the insane and undiscerning minor is not valid
② Consent
- No coercion in the contract
- ﴿Unless it be a trade by mutual consent﴾
③ Ownership or Authority
- The lessor owns the usufruct or has the right to dispose
- The agent leases by proxy
Second Pillar: The Formula
| Type | Example | Status |
|---|---|---|
| Speech | "I rent you this apartment" — "I accept" | Explicit |
| Action | Getting in a taxi and sitting | Tacit exchange |
| Writing | The written contract | Valid |
Its conditions:
- Agreement of offer and acceptance
- Their continuity in the session
- Absence of suspension on an unknown future condition
Third Pillar: The Usufruct
✅ Conditions of the Leased Benefit
It must be known
- •By description: "2-room apartment kitchen bathroom"
- •By observation: seeing the leased item
It must be permissible
- •✅ Housing, transport, lawful work
- •❌ Shop for selling alcohol, gambling hall
It must be deliverable
- •❌ Renting a stolen car
- •❌ Renting apartment occupied by another tenant
It must be for the lessee not the lessor
- •The benefit transfers to the lessee
- •The lessor only receives rent
Fourth Pillar: The Rent
📜 Conditions of the Rent
① That it be known — in quantity and quality
- 1000 riyals per month ✅
- "Whatever you see fit" ❌
② That it be valuable property
- Money, or usufruct, or item
- No rent in unlawful things
③ That it can be delivered
- Not valid with non-existent property
Types of Leasing
Types of Lease Contracts
Leasing a specific item
Leasing something described as an obligation
Hiring someone's work
First Type: Leasing of Specific Assets
📖 Examples of Asset Leasing
Mohammed: I want to rent this apartment (pointing to it) for a year.
The Owner: Agreed, the rent is 12000 riyals annually.
Mohammed: I accept.
✅ This is a lease contract for a specific asset — the apartment is identified by observation.
| Rule | Detail |
|---|---|
| Delivery | The asset must be handed to the lessee |
| Maintenance | On the owner unless otherwise stipulated |
| Destruction | If the asset is destroyed without abuse, the contract is terminated |
Second Type: Guaranteed Leasing
📖 Example of Guaranteed Leasing
Ahmed: I want to rent a Toyota Camry 2024 for a week.
The Company: Agreed, we have several cars of this type.
Ahmed: The important thing is that it meets the mentioned specifications.
✅ This is a guaranteed lease contract — the car is described but not specified.
Third Type: Leasing of Labor
👷 Types of Workers in Work Contracts
Private Employee
Works for one employer
Fixed duration (month/year)
Salary based on duration
Ex: Monthly employee, private driver
Shared Employee
Works for multiple people
Defined work, no fixed duration
Salary upon work completion
Ex: Tailor, lawyer, doctor
Guarantee Rules in Leasing
The Fundamental Rule
📜 The Principle for the Lessee
The lessee is a trustee, he only guarantees in case of abuse or negligence.
⚖️ When is the Tenant Liable?
Transgression
Liable ✓
Using the property other than agreed
Rent to live, use as warehouse
Rent car for city, travel far
Negligence
Liable ✓
Failing to preserve the property
Leave door open, theft
Neglecting car in sun
Selling the Leased Asset
📖 Common Question
Said: I rented an apartment for a year, and in the middle of the period, the owner sold the building!
The Question: Does the lease contract end?
| Situation | Rule |
|---|---|
| Sale to the lessee | ✅ Permitted — he becomes owner and rent ceases |
| Sale to a third party | ✅ Permitted — and the lease contract remains in effect |
📜 The Rule
Leasing is a binding contract, it is not terminated by the sale of the leased asset. The new buyer takes possession of the asset after the lease period ends.
Termination of the Lease Contract
⏰ Causes of Lease Termination
End of agreed duration
- •Contract ends automatically
- •Property must be returned to lessor
Mutual termination
- •By mutual agreement
- •Before end of duration
Destruction of leased property
- •Total destruction = termination
- •Partial destruction = tenant choice
Loss of intended benefit
- •Rent land for farming, water cut
- •Rent shop, lockdown imposed
Lease Ending with Ownership (Hire-Purchase)
📜 Definition
Lease Ending with Ownership: A lease contract including a promise to transfer ownership of the asset to the lessee at the end of the period.
Its Ruling — Contemporary Scholars' Disagreement
⚖️ Scholars' Views on Lease-to-Own
First view: Permissible with conditions
Separate promise from lease contract
Transfer by new contract (gift or symbolic sale)
Tenant not liable for property loss
Second view: Prohibited
Two contracts in one
Unknown outcome
Uncertainty about contract nature
The Unanimously Accepted Lawful Alternative
📖 The Correct Method
Step ①: Independent lease contract with monthly payments
Step ②: Promise from the owner to sell at the end of the period
Step ③: Independent sale contract at the end (symbolic price or gift)
Result: Two separate contracts, no problem!
📖 From the Righteous Predecessors: The Employee's Honesty
📖 'Umar ibn 'Abd al-'Aziz and the Treasury Lamp
In the caliphate palace, 'Umar ibn 'Abd al-'Aziz works on Muslim affairs...
The Servant: O Commander of the Faithful, have you finished the official documents?
'Umar (extinguishing the lamp): Yes, I'm done.
The Servant (surprised): But you want to read a personal letter!
'Umar (lighting another lamp): This is my personal lamp.
The Servant: What's the difference?
'Umar: That one is the lamp of the Muslims' treasury, it's not permissible for me to use it for my personal affairs. I am their employee!
📜 The Lesson
The employee is a trustee of what he is employed for, he does not betray in time, nor in money, nor in resources!
🎯 Contemporary Cases: Judge for Yourself!
Case 1: Apartment Rental on Airbnb
❓ The Question
Abdullah owns an apartment and rents it on the Airbnb app for short periods (day or week).
Is this permitted?
The Answer:
✅ Permitted under conditions:
- That the tenant doesn't use it for unlawful purposes
- That the rent is known
- That the usufruct is lawful and known
Case 2: Netflix / Spotify Subscription
❓ The Question
Fatima pays a monthly subscription for a movie or music streaming service.
Is this a valid lease contract?
The Answer:
| Aspect | Rule |
|---|---|
| The contract itself | ✅ Valid lease (known rent for known usufruct) |
| The content | ⚠️ Depends on what is watched |
- Lawful documentaries: ✅ Permitted
- Music and unlawful content: ❌ Not permitted
Case 3: Uber Driver
❓ The Question
Khaled works as an Uber driver with his own car.
What type of contract is this?
The Answer:
- This is a contract of labor leasing + usufruct leasing
- ✅ Permitted under conditions:
- Complying with Sharia rules (not transporting to unlawful places)
- No seclusion with an unrelated woman
Case 4: Freelance Work
❓ The Question
Ahmed is a graphic designer who works via the Fiverr platform. He earns $50 per design.
What is the ruling on this contract?
The Answer:
- ✅ This is labor leasing (shared employee)
- Conditions of validity:
- Define the required work
- Define the wage
- That the work is lawful (not designing for alcohol or gambling companies)
Case 5: Late Payment Fees on Rent
❓ The Question
The landlord stipulates: "If you delay rent payment, you pay 100 riyals for each day of delay."
What is the ruling?
The Answer:
❌ The financial penalty clause for delay = usury (riba)
⚠️ Why Late Fees are Usury?
Late rent = debt on tenant
Increase on debt for delay = usury
"Every loan that brings benefit is usury"
❌ Prohibited in Islam
✅ Lawful Alternatives:
- Contract termination upon delay
- Requiring a solvent guarantor
- Advance rent payment
💡 Stop and Reflect
📜 Question for Reflection
You are an employee in a company, and the work contract stipulates 8 hours per day. But you spend one hour per day browsing social media.
Is this lawful according to Sharia?
Reflect with me:
🔹 You are an employee, and the time is not yours — it belongs to the employer
🔹 "Give the worker his wage before his sweat dries" — but the worker must also give his due to the work!
🔹 The money you receive for that hour: is it lawful?
🔹 If the employer permits it = lawful. Otherwise = unlawful consumption of property!
🔑 Lesson Summary
🎯 Summary: Leasing Rules
| Élément | Statut | Notes |
|---|---|---|
| Lease = contract on benefit for payment | ✅ Halal | |
| 4 pillars: Parties, formula, benefit, rent | ✅ Halal | |
| Property lease + liability lease + work lease | ✅ Halal | |
| No liability except for transgression/negligence | ✅ Halal | |
| Lease-to-own: permissible with conditions | ✅ Halal | |
| Late fees on rent | ❌ Haram |
Lord, increase me in knowledge