Option 1 and 2 are Riba.

Option 3 is permissible.

Is the landlord taking heavy deposit for property he rents out permissible in Islam? These are of 3 kinds: 1. Take a huge sum (usually 10+% of the property) & let the person use it for a fixed period. Then return the sum as it is & he returns the property. 2. Same as case one, but charge him nominal rent, for bills, etc. 3. Take a small sum (usually <3%) as a security deposit (for damages or non-payment) & charge a high market rate rent

Riba | September 25, 2014 1:22 am
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A house is being given on rent for 8000 rupees monthly. The owner is saying that if we give 300000 rupees as security, he will reduce the rent to 3000 rupees monthly. And when we leave the house, he will return the 300000 rupees security. Is this permissible?
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My husband is going to rent an apartment however in the lease there is usually a riba clause. This is a standard lease in the city. The clause usually states that riba would be charged if payment is delayed beyond a certain date every month. Alhumdulillah my husband pays the rent on time but can we sign this lease? Is it sinful to do so? Please note its the standard lease paper that is used by almost every person who is renting out an apartment.