Can we charge a fee for late rental payments?
Question
We have given apartments for rent. Some times the tenant dose not pay the rent according to the agreed date. Is it ok to take fine? Beacuse if are taking a fine then they will be forced to pay the rent before due date. Will taking fine be riba?
Answer
In the name of Allah, Most Gracious, Most Merciful
Assalaamu `alaykum waRahmatullahi Wabarakatuh
It is not permissible to charge a fine on late rental payments.
An alternative is to inflate the rent by 10% and if anyone pays timeously, they will be offered a 10% discount.
And Allah knows best
Wassalam
Mufti Ebrahim Desai
- Answered by
- Mufti Ebrahim Desai
Where scholars differ, it’s safer to take the more cautious view.
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Source: Darul Iftaa Mahmudiyyah — https://askimam.org/public/question_detail/16441
Fatawa SA: https://fatawa.co.za/fatwa/askimam-16441
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