Is there zakat on leased out property?
The question, as received
I own a house which I rent out. Do I have to give zakāt on that property?
The answer
In essence, only the following categories are zakātable:
In short: the rented property itself is not zakatable; rent received is added to zakatable wealth.
Explanation
1) Gold and silver
2) Cash
3) Merchandise
4) Agricultural produce
5) Animals and livestock
A property on lease is not subject to zakāt.1 The rental received from the tenant will be added to one’s total wealth and will be subject to zakāt.
And Allah knows best.
Mufti Faraz Adam
References
1وَلَوْ آجَرَ عَبْدَهُ أَوْ دَارِهِ بِنِصَابٍ إنْ لَمْ يَكُونَا لِلتِّجَارَةِ لَا تَجِبُ مَا لَمْ يَحُلْ الْحَوْلُ بَعْدَ الْقَبْضِ فِي قَوْلِهِ (البحر الرائق ج 2 ص 224 أيج أيم سعيد)
فتاوى محمودية ج 9 ص 426 فاروقية
Based on the Hanafi school and on the question as it was asked. Another mufti may reach a different conclusion. Read the disclaimer.