Zakat on rent or property value: If the person lives in the house himself, then there is no zakaah on the house. But if the person has given the house out on rent to someone else, he does not have to pay zakat on the property value, but rather he must pay 2.5% of the gross annual rent as the zakaah for his property. Some scholars have also opined that the calculation of the zakaah on the rented house should be treated like the calculation of artificially irrigated agricultural land, and the owner must pay a 5% zakaah on the gross annual rent. dear brother from the above statement it is clear that if i have property other than my house and that is rented i dont need to pay zakah on the property value but on the excess income from the property or rent
Respected brother, there are indeed a few modern scholars who have utilized the 'qiyaas' of calculating the annual zakah of agricultural land for determining the zakah on rental properties; and have issued a ruling that it would be permissible for the owners of the rented property to calculate their zakah at 5% or 10% of their annual rental income, if indeed they wish to do so.
But the majority of the scholars and jurists in Islam are of the opinion that the calculation of zakah of the produce of the agricultural land is specific to that category alone, and if one has real estate assets, regardless of whether they earn rentals from those properties or not, they would be liable to pay annual zakah on the market value of their excess properties at 2.50%. And Allah Alone Knows Best.