Shaykh Ibn Baz was asked about the ruling on Zakat for properties that are rented out. He clarified that Zakat is not due on the value of the property itself, such as the building or land, if it was acquired with the intention of renting it out and not for the purpose of trade or resale. These types of assets are considered fixed assets for use ('arad al-qinyah), not trade goods.

However, Zakat is obligatory on the rental income generated by the property. The owner should collect the rent, and when a full lunar year (hawl) has passed over the amount that reaches the minimum threshold (nisab), Zakat must be paid at a rate of 2.5%. The nisab is equivalent to the value of 85 grams of gold.

The Shaykh explained that the hawl begins from the time the money is received. If the owner collects the rental income and spends it on their essential needs (like food, drink, and household expenses) before a year passes, then no Zakat is due on the portion that was spent, as the condition of the passing of a full lunar year over the wealth is not met.

He made a clear distinction between a property intended for rent and one intended for sale. If a person buys a property with the primary intention of reselling it for profit, it is considered a trade good ('arad al-tijarah). In that case, Zakat would be due on its market value every year, along with the profits, just like any other merchandise.