The Difference Between Renting and Selling with Interest

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Question

Is there a difference between renting and selling with interest?

Answer

There is a difference between renting and selling. In a sale, when a person sells an item, it is forbidden to specify that if he pays in cash, the price will be a certain amount, and if he pays in installments, the price will be higher. However, in renting, the landlord is allowed to tell the tenant that if he pays in advance, the price will be reduced. The reason for the distinction is that in a sale, the time of payment is immediate, so the discount is considered a loan. But rent is only paid at the end, meaning the time of rent payment is at the end of the rental period, and paying in advance is not considered a loan, so it is permitted to reduce the payment when paying in advance.

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