(1) What is the ruling on renting out a house in exchange for renting another house?

Question: What do the scholars of Islam say about the following matter: I have my own house in Korangi and I want to rent it out. The person I want to rent it to lives in New Karachi. I will rent their New Karachi house, and the rent for both will not be determined separately; rather, both parties will use each other's houses as rent. Is this permissible?

الْجَوَابُ بِعَوْنِ الْمَلِكِ الْوَهَّابِ اللَّهُمَّ هِدَايَةَ الْحَقِّ وَالصَّوَابِ

Answer: The transaction mentioned in your question, that you want to rent out your own house in Korangi and in return rent the house of the person from New Karachi, while the rent for both will not be determined separately but one's house will be used as rent for the other's, is impermissible. This is because the ruling in the Shariah is that Ijārah (leasing) of benefit for benefit is permissible only when the genus of both benefits is different, such as renting cultivation land in exchange for residence in a house. But if the genus of benefit is the same on both sides, then this is impermissible.

Permissible alternative solution:

In the above-mentioned situation, the Shariah requires that both parties set the monthly rent for their respective houses in the form of a specific amount. At the end of the month, they should settle (exchange) the agreed amount. In this way, this transaction will be in accordance with the principles of Ijārah and there will be no Shariah-related problem. For example, if both parties rent out their respective houses for twenty thousand rupees per month, then at the end of the month, twenty thousand rupees will be due from each to the other. Then each can settle their one thousand against the other's one thousand, balancing the transaction. If the rents are set at a varying amount, then the owner of the house with the higher rent should only take the additional amount. In this way, this Ijarah contract will be in accordance with its principles and there will be no Sharia-related problem.

Imam ꜤAlāˈ al-Dīn al-Haṣkafī, رَحْمَةُ الـلّٰـهِ عَـلَيْه, writes:

(إجارة المنفعةبالمنفعة تجوز إذا اختلفا) جنسا كاستئجار سکنی دار بزراعۃ ارض (واذا اتحدا لا) تجوز کإجارة السکنی بالسكنى

(Ijārah of benefit for benefit is permissible when both differ) in genus, such as renting residence in a home in exchange for cultivation of land. But if the genus of both is the same, then it is not permissible, such as residence in exchange for residence.”[1]

The erudite Hanafi jurist, Mufti Amjad ꜤAlī al-AꜤẓamī رَحْمَةُ الـلّٰـهِ عَـلَيْه writes:

That which can be the price in a sale can also be rent, but it is not necessary that whatever can be rent can also be the price. For example, one benefit can be the rent for another benefit, provided both are of different kinds, but a benefit cannot be the price.[2]

وَاللَّهُ أَعْلَمُ عَزَّ وَ جَلَّ وَرَسُولُهُ أَعْلَم صَلَّى الله عليه واله وسلَّم

(2) What is the ruling on renting a cow to obtain milk?