Is it interest if i charge my Tennant a penalty fee if they fail to pay rent on time?
Wa alaykum salaam,
Yes, if this is imposed as a condition by you in the contract and retained by you upon default, it will be interest and impermissible.
Allah knows best
Salaam, thanks for the reply. What if i was to inflate my rent by say £50 and offer the tenant a £50 discount if they were to pay rent by a specific date.
May Allah bless you
Wa alaykum salaam,
This would be permissible.
Allah knows best