Q. A man paid his landlord a large deposit as per the lease agreement of the latter’s flat. At the end of the agreement, the landlord did not return the deposit because he was in financial difficulty. The tenant obtained a court judgment requiring the landlord to return the deposit, but he has so far failed to do so. The tenant has remained in the flat despite the expiry of his tenancy, waiting for the repayment of his money. He has been told that by remaining in the flat without paying rent he is actually taking usury. Is this correct? What should he do?
A. Ali
A. The landlord is at fault for spending the deposit he was given, knowing that it is a returnable deposit. But since he is in financial difficulty, he should be helped by allowing him time for repayment. God says in the Qur’an: “If (the debtor) is in straitened circumstances, grant him a delay until a time of ease.” (2: 280) However, it could be thought that he is unlikely to be able to repay in the near future. Hence, it is acceptable for the tenant to make alternative arrangements to ensure repayment. But this should not involve any unfair gain or advantage. If he stays in the flat, he should pay rent, or reduce the amount of the deposit by the equivalent of the rent. Alternatively, he should make a new agreement to stay in the flat for a length of time that gives him what is equal to the deposit. Suppose that the rent he was paying was 1000, and the deposit he paid is 10,000. He can agree to stay in the flat for 10 months without paying new rent. Thus, the deposit becomes a rent paid in advance. But if he stays in the flat without pay, pending the repayment of his deposit in full, this is unfair gain equivalent to usury. This becomes a forbidden transaction.
