This is a quick question on Zakat for rental property.
Do I take the gross amount and subtract expenses and repairs, then whatever amount is left I pay Zakat on? Or do I pay Zakat on the gross rent?
بِسْمِ اللهِ الرَّحْمنِ الرَّحِيْم
In the name of Allah, the Most Gracious, the Most Merciful
Zakat can only be on those items which are kept with the intention of reselling them. Since the rental property is leased out, it will not fall under this category and therefore Zakat on it will not be binding. However, there is Zakat on the income one attains from a rental property if it fulfills the other conditions of Zakat.
Only Allah knows best
Written by Maulana Imran Mughal
Checked and approved by Mufti Mohammed Tosir Miah
Darul Ifta Birmingham
 Imam Marghaynani, Al-Hidayah (Karachi: Maktabat Al-Bushra, 2014), 2:8