Is Zakat due on rent money received for a property?
Chapter on Zakat on Gold and Silver
Al-Mughni
Book of Zakat
Primary text
Zakat is not due on rental income received until a full lunar year (*hawl*) has passed over the possession of that income. This is supported by the Prophet's saying: "There is no Zakat on wealth until a year has passed over it." Furthermore, rental income acquired through a contract of exchange (lease) is treated similarly to the price of a sold item, thus requiring the passage of a year.
Supporting text
There is a narration from Ahmad that suggests Zakat is due upon receiving the rent immediately. However, this view is reconciled by understanding it applies specifically when a person rents their house for a year and receives the total rent at the very end of that year. In such a case, the rent is considered possessed from the beginning of the year, similar to a debt collected after its due year, thus requiring immediate Zakat upon receipt.