What are the rules for rental deposits?

“Initially, the deposit is a trust (امانة) in the possession of the landlord; therefore, he is not permitted to use it. However, due to common practice and custom (عرف), the landlord uses it with the implicit (دلالة) permission of the tenant. As a result, the deposit eventually becomes a liability (دين مضمون) upon the landlord.”

“In regard to leasing out a premises is concerned, then the law of Shariah is that if a deposit is taken from the tenant, then upon the termination of the lease period, the deposit should be returned to the tenant.”

“In principle, a security deposit is a trust (Amaanah) in the hands of the landlord. Accordingly, the landlord cannot make use of those funds for his personal needs.”

“We assume your query is regarding paying a deposit when renting a shop or house. If so, then yes, it is permissible for the landlord to ask for a deposit as this does not contradict any law of Shari’ah.”