Zakat al-mustaghallat for Malaysian landlords of residential properties

• Date: 24 October 2023
• Pages: 178-195
• DOI: https://doi.org/10.1108/IJHMA-04-2023-0048
• Published date: 24 October 2023
• Subject Matter: Property management & built environment,Real estate & property,Housing markets
• Author: Hanudin Amin,Imran Mehboob Shaikh

Zakat al-mustaghallat for

Malaysian landlords of residential

properties

Hanudin Amin and Imran Mehboob Shaikh

Labuan Faculty of International Finance,

Universiti Malaysia Sabah, Labuan, Malaysia

Abstract

Purpose –This study aims to examine the zakat al-mustaghallat acceptance index (ZAMAi) through the

examination of its predictorsidentif‌ied in this work, including attitude, social inf‌luence,self-eff‌icacy, amount

of informationand Islamic altruism, at best.

Design/methodology/approach –Drawing from the attitude-social inf‌luence-self eff‌icacy model, this

study evaluated the effects of these factors on ZAMAi using an empirical investigation surveying 184

respondentswho were identif‌ied as the owners of residential propertiesin Malaysia.

Findings –In the core model, this study found signif‌icant outcomes for the effects of attitude, social

inf‌luence, self-eff‌icacy,amount of information and Islamic altruism,along with the demographic items tested.

For post hoc analysis, this study found two signif‌icant outcomes drawn from the role of attitude as a

mediatingvariable in this study.

Research limitations/implications –The results obtained from this study should be used with

caution owing to its limited applicability and the constraints of subjects and variables in the framework

developed.

Practical implications –The results obtained can become a yardstick to gauge the success of zakat

al-mustaghallatacceptance in Malaysia.

Originality/value –This study introduced new measures of ZAMAi, where Malaysian landlords are

brought intoplay.

Keywords Islamic social f‌inance, Residential properties, Acceptance, Landlords, Malaysia

Paper type Research paper

Introduction

Everyone loves to have a house to live in with family and loved ones for improved well-

being and peace of mind. According to the National Property Information Centre (NAPIC)

(2023), there are almost 7 million properties in Malaysia including 5.8 million residential

properties. Residential property is where a lot of the excitement is, ranging from a family

gathering to a passive income generator. Those who have extra units sourced from

investment decisions or inheritances can opt to rent them out for passive income generated

besides their major source of income. In particular, residential properties like landed

property and stratif‌ied property have not been considered as zakatable items due to their

f‌ixed natures, malformed shouldthe owners aim to buy them for family shelters and do not

intend for renting them out. However, if one intends to rent out the properties, the f‌ixed

nature will not remain static. Whenthere are rented out, they now turn to variable and can

grow in income monthly, quarterly or even yearly. In turn, this has been considered the

houses to be rented out, for example, are subject to the zakat payment in the number of

rental revenues accumulated for one year and meeting the minimum requirement called

nisab. This is known as zakat al-mustaghallat.Zakat means tithes, whereas al-mustaghallat

IJHMA

18,1

178

Received7 April 2023

Revised2 August 2023

Accepted8 August 2023

InternationalJournal of Housing

Marketsand Analysis

Vol.18 No. 1, 2025

pp. 178-195

© Emerald Publishing Limited

1753-8270

DOI 10.1108/IJHMA-04-2023-0048

The current issue and full text archive of this journal is available on Emerald Insight at:

https://www.emerald.com/insight/1753-8270.htm

means generated yields from f‌ixed assets and usufructs. Thus, zakat al-mustaghallat is

tithes sourced from yieldsfrom f‌ixed assets and usufructs.

This study is about zakat al-mustaghallat, which can be referred to any proceeds

obtained from yields drawn from rental payment of houses, cars and animals that are

subject to the zakat payments when nisab (the minimum amountobliges to zakat) and hawl

(passing of a year) are brought into play. In more detail, zakat al-mustaghallat is one of the

income components of zakat in which thef‌ixed assets generated income that will be subject

to the zakat estimation for zakat payment. In its simplest form, this zakat is based on the

yields obtained from the f‌ixedassets, emerging in nature. It has two categories: the f‌irst type

is f‌ixed asset that breeds new products or goods and the second type is its income sourced

from usufruct and services. The former can be kinds of milk derived from goat and cow,

eggs drawn from chicken and yields stemming from oil palm, durian and honey that

generate income, of which all are subjected to the zakat payment if the conditions are met.

The latter can be yields of usufructs sourced from the rental of the building, cars, personal

houses, hotels and transportation, inter alia. Combined all, these are def‌ined and termed as

zakat al-mustaghallat, which provides a new dimension for zakat institutions to tap into its

potential, but as always, challenges and teething issues like zakat evasion could make this

type of zakat can play its rolefor the well-being of society, at large (Diabi, 1993).

Following Al-Qaradhawi (1981), zakat is a signif‌icant part of economic security in

Islam, minimising the social effects of poverty through the strengthened role of zakat,

where proper collection and distribution of funds are brought into play. Though

important, zakat al-mustaghallat has received marginal attention from contemporary

scholars, given to poor focus has been directed on policies of zakat institutions towards

this zakat type in Malaysia. Adding to that, differing in scholars’research paradigms,

making literature about zakat al-mustaghallat is falling short. A contemporary study by

Hasan et al. (2021), though interesting, has ignored the signif‌icance of zakat al-

mustaghallat in their framework owing to different research motivations and designs.

This work is therefore examining zakat al-mustaghallat acceptance, which can offer new

perspectives to close the gap.

Relying on a single source of zakat funds can be challenging in the long term for zakat

institutions to maintain their role in eradicating poverty among poor and needy folks in

society. The source should be multiple enough to ensure its sustainability in helping poor

and needy folks and other recipients for well-being. One of the very important zakat

sources of the fund can be drawn from zakat al-mustaghallat through residential

properties that can diversify the zakat source to avoid the over-dependence of current

zakat source that limits the f‌inancial source of the zakat institution. Despite the great

importance attributed to zakat al-mustaghallat for residential properties, its measurement

and management are still elusive issues, mainly due to inadequate promotion made on it

drawn from its poor popularity. Despite its diff‌iculty, the extant literature is growing to

shed light on its merits to improving zakat collection and thus better zakat redistribution

schemes offered to the eligible recipients (Hasan et al., 2021). However, proper empirical

investigations regarding zakat al-mustaghallat have received examinations out of

different focus of zakat institutions as well as the negligence of landlords in participating

in this scheme.

This study is therefore aimed at explaining the effects of attitude, social inf‌luence, self-

eff‌icacy, amount of information and Islamic altruism on the zakat al-mustaghallat

acceptance index (ZAMAi). Generally, ZAMAi suggests constructs’items that gauge the

level of acceptanceamong owners of residential properties in Malaysia.

Zakat al-

mustaghallat

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