Assalamu Alaiykum,
The following is kind of a 2-in-1 combo, answer built-in a question 
, with the answer needing verification.
I understand, in terms of Shariah (not the law), that we are not required to review the marital status or āthe concealed genderā of the tenant (contract is always with one person regardless of who he/she invites to the property) as long as the purpose of renting is Shariah-compliant and agreed upon by both parties.
Adding to the above, regarding Co-living, student housing and Later living, the law -of course- does not mandate mixing non-bloodline individuals of different sexes under a one-roof rental, but it also does not stop property management from separating them; i.e there is no excuse to allow mixing (impermissible by Shariah), especially when the law is neutral on separating.
The question: Would it be nonpermissible to invest in the property if the asset management overlooks separation?
My reference to my concern is quoted below from What is the ruling on renting property to someone who will commit evil deeds therein? - Islam Question & Answer
When renting out property, one of two scenarios must apply:
either the landlord was aware that the tenant was committing the haraam activity, such as if he stipulated in the contract that the rental was for this purpose, or he did not stipulate anything but he was aware that the haraam activity would be committed there; or he was not aware of that.
In the latter case, the rental is valid, and the rent is rightfully his and is halaal, according to the consensus of the imams.
But in the former case, the three imams said ā and Abu Yoosuf and Muhammad, among the companions of Abu Haneefah agreed with them ā that the rental is rendered invalid, because it is based on sin.
End quote from Fataawa Dar al-Iftaā al-Masriyyah (9/374)
Please also refer to Is it permissible to rent an apartment to two Christian women, with whom there is a Christian man who is not related to them? - Islam Question & Answer which is cited in the same fatwa above.
@Mufti_Billal @Mufti_Faraz_Adam Jazakum Allah Khair for answering in advance 
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As-salamu Alaykum Wa Rahmaa Tuālahi Wa Brakatu,
This is a complex situation but the way I might look at this is by the following.
Company X works in Sector A
Sector A can be used for haram or halal
Company X does not explicitly or implicitly work or derive anything from Haram
Company X is not haram to work or deal/trade with.
Literal examples:
You invest in the leading knife company
Knives themselves are not haram nor is their production or creation.
A thug buys a knife from the company and commits a sin by harming someone.
This does not invalidate the halal status of the company because these are circumstances beyond control and the intention of the company is not to harm others but for cutting and serving food.
A REIT will be not haram because any haram can be done inside of the building as long as the REIT is not deriving itself from the haram.
If this were not the case then buying and renting homes or investing in hospitals or building companies or real estate companies will be all inherently haram.
I agree with you, but the case is slightly different here. Letās focus on student housing for example (I know my original post was long).
Thereās housing X that permits non-bloodline different sexes to live together
Thereās housing Y that does not allow it
It is halal to invest in Y for sure, but could we say the same for investing in X?
To my knowledge, in our student housing example, the contract is made with every student in the same room with the managementās knowledge, which validates the concern above.
However, if the contract is with only one student to be solely responsible for what happens with the room, then it isnāt the managementās problem if the student decides to invite others -disregarding their sex/orientation- to share the rent.
To simplify my answer, as long as the service being offered (student housing) is intrinsically halal and halal in itās sole nature then itās fine.
I donāt think we can control the implementation of the service however if your gut feeling is not to invest then itās best not to.
I suggest praying istikhara and see what happens best.
I personally, under my Islamic view, think itās fine to invest. Itās the same as investing in any other company where itās services could be abused
Thanks for your reply. May Allah grant you Firdaous.
Itās fine unless it was well known that sin would be committedā¦mixing in itself between unrelated sexes is a sin (see the fatwa)
This should be a red light until Sharia governs the investment aspects, not an exceptional excuse to greenlight the investment without evidence of permissibility.
Istikhara is prescribed when deciding on a permissible act. If the act is haram then Istikhara is not a way out.
Quoted from this fatwa āBut if the vendor knows that the one who buys the knife or sword will use it for evil purposes, then it is haraam to sell it to himā.
So it boils down to the knowledge of whether will it be or not be abused. Answering this question will bring something from halal/haram to haram/halal.
I agree with your break downs here, however there are some stuff I would have issues with.
- when I said we canāt control the implementation, I agree as long as the sole implementation is meant for halal activities. Back to the knife example, a cooking knife company is halal as long as their focus is to sell cookware and they are not trying to cause harm.
For example, the same-sex (non-mixing) housing is halal to invest in however if they break the agreement (the tenants) that does not invalidate the permissibility of the company.
- istikhara is meant for guidance, in this case, when you werenāt sure if an act is permissable or not it is fine to pray for guidance
Shaykh Al-Islam Ibn Taymiyah (may Allah have mercy on him) said:
āIt should be understood that in principle all things, of various types and categories, are generally permissible for human beings, and that they are pure and it is not forbidden for people to handle them and touch them."
As general advice, turn to your lord even if guidance is needed to tie your shoe lace: Prophet (peace and blessings of Allah be upon him) said: āLet one of you ask his Lord even with regard to his shoelace."
However, now that you solidified the haram nature of this, istikhara is no longer needed.
To fully be transparent, I am very ignorant and not certain on what the answer is but I assume in your heart you believe the investment to haram - thereās no point in chasing this world and letting go of your principles.
The housing investment sex-mixing issue can be classed as haram due to readable doubt but Iām not sure as we cannot objectively say it will be used for haram in which case (if we do say itās haram) we may accidentally slandering the tenants and service.
Iām too ignorant to answer this, best take the save route and not invest I assume
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