Permission of Cash Rent Only
1) ‘Abdullah b. al-Sa‘ib reported: “We visited ‘Abdullah b. Ma‘qil and asked him about sharing of crops, whereupon he said: “Thabit alleged that Allah’s Messenger (Sall Allah-o-alaihe wa sallam) forbade muzara‘a and commanded leasing it out on rent (for money) and said: ‘There is no harm in it’.”
2) Hanzala b. Qais reported that he asked Rafi‘ b. Khadij (Allah be pleased with him) about renting of land, whereupon he said: “Allah’s Messenger (Sall Allah-o-alaihe wa sallam) forbade the renting of land.” I said: “Is it forbidden (even if it is paid) in gold (dinar) and silver (dirham)?” Thereupon he said: “If it is paid in gold and silver, there is no harm in it.”
Hanzala b. Qais al-Ansari reported: “I asked Rafi‘ b. Khadij about the renting of land for gold and silver, whereupon he said: ‘There is no harm in it for the people let out land situated near canals and at the ends of the streamlets or portion of fields. (But it so happened) that at times this was destroyed and that was saved, whereas (on other occasions) this portion was saved and the other destroyed and thus no rent was payable to the people (who let out lands) but for this one (which was saved). It was due to this that he (the Holy Prophet, Sall Allah-o-alaihe wa sallam) prohibited it. But if there is something definite and reliable (e.g. money), there is no harm in it.
3) Hanzala b. Qais reported: I asked Rafi‘ b. Khadij about the renting of land. He said that Allah’s Messenger (Sall Allah-o-alaihe wa sallam) prohibited the renting of land. I said: “Is it forbidden (even if it is paid) in gold (dinar) and silver (dirham).” He said: “No.” He only forbade to give land on rent for what it produced. As far gold and silver, there is no harm.”
Hanzala b. Qais reported: I asked Rafi‘ b. Khadij about the renting of barren land for gold and silver. He said: “It is lawful; there is no harm in it. This is the due of land which is fixed.”
Rafi‘ b. Khadij reported that Allah’s Messenger (Sall Allah-o-alaihe wa sallam) forbade us the renting of our land, and in those days, there was no gold or silver. A man used to rent his land for what grew by the side of canals and watercourse, and for something known (set aside by the owner of land).
Traditions referring to Absolute Permission
4) Mu‘adh b. Jabal reported: The land was rented during the times of the Apostle of Allah (Sall Allah-o-alaihe wa sallam), Abu Bakr, ‘Umar and Uthaman for a third and a quarter of the produce and it is practised till this day.
5) Ibn ‘Abbas reported: When the Holy Prophet (Sall Allah-o-alaihe wa sallam) conquered Khaiber, he made a stipulation with them (the Jews) that the entire land, gold and silver would belong to the Holy Prophet (Sall Allah-o-alaihe wa sallam) The people of Khaiber said to him: “We are conversant with (the cultivation of) land; so grant us these lands so that we cultivate them and take half of the fruits as our share and leave half of it for you.” The narrator alleged: He granted the lands (of Khaiber) on that condition to them (i.e. the jews). When the harvest of dates was ready, he (the Holy Prophet, Sall Allah-o-alaihe wa sallam) sent ibn Rawaha to them. He assessed the yield (and the people of Madina termed it as khars). He said: on so and so such and such is payable. The jews proclaimed to ibn Rawaha: You have overassessed the yield. Ibn Rawaha said: “I harvest the yield and give you half of what I assessed it to be.” On this they said: “This is the truth, and on it stand the heaven and the earth.” They said: “We are agreed to take what you have said.”
6) Ibn ‘Umar reported that Allah’s Messenger (Sall Allah-o-alaihe wa sallam) contracted with the people of Khaibar the (trees) on the condition that he would have half the produce in fruits and harvest.
Ibn ‘Umar (Allah be pleased with him) reported: Allah’s Messenger (Sall Allah-o-alaihe wa sallam) handed over the land of Khaibar (on the condition) of the share of produce of fruits and harvest, and he also gave to his wives every year one hundred wasqs, eighty wasqs of dates and twenty wasqs of barley. When ‘Umar became the caliph, he distributed the (lands and trees) of Khaibar and gave option to the wives of Allah’s Apostle (Sall Allah-o-alaihe wa sallam) to earmark for themselves the land and water or stick to the wasqs (that they got) every year. They differed in this matter. Some of them opted for land and water, and some of them opted for wasqs every year. ‘A’isha and Hafsa were among those who opted for land and water.
‘Abdullah b. ‘Umar reported that when Khaibar had been conquered, the Jews asked Allah’s Messenger (Sall Allah-o-alaihe wa sallam) to let them continue (cultivation in those lands) on half of the share of yield in fruits and crop, whereupon Allah’s Messenger (Sall Allah-o-alaihe wa sallam) said: “I will allow you to continue here, so long as we would desire.” The rest of the hadith is the same, but with this addition: “The fruit would be distributed equal to the half of Khaibar. And out of half of the produce of the land, Allah’s Apostle (Sall Allah-o-alaihe wa sallam) got the fifth part.”
Source: Economic Teachings of Prophet Muhammad (peace be upon him): A Select Anthology of Hadith Literature on Economics, Muhammad Akram Khan. Republished with permission.