Assalamu Alaikum Its a common practice by some here to rent a villa from the owners on an agreed amount and sub let this to others too and collect rent from them is it Halal.Some times its with the knowledge of the owner who doesnt care as long as he is getting his rent, some times it is even without his knowledge. In some cases the rent collected by this tenent is even more than the rent paid to the main owner.Its justified that he has spent on the Villa to partition and make more rooms and space so he can have the rental benefits. Some times this main tenent who has rented it from the owner is benefitted to the extent that he doesnt pay any rent and stays free as well earns from this like a business.Is all this Halal and is it Halal for some one to stay in a part of this Villa on agreed rent with this tenent pls clarify . JazakAllahu Khair.

All perfect praise be to Allaah, The Lord of the Worlds.  I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His slave and Messenger.

It is permissible for a tenant to rent the rented property without the knowledge of the landlord with the following conditions:

-        This must be during the period of the contract.

-        One should rent it to someone who would benefit from it in the same manner as the one who rents to him.

-        Some scholars made the condition that the landlord should not have placed the condition on the tenant to be the sole beneficiary of the rented property.

If these conditions are met, it is permissible for the tenant to rent the rented property, be it an accommodation (for dwelling in it) or else, even with a higher price than the price at which he himself rented it.

Shaykh Ibn Taymiyyah said, “It is permissible for a tenant to rent the rented property for a (third) person who would occupy it for the same purpose with the same price or even with a higher price.”

For more benefit, please refer to Fatwa 132060.

Allaah Knows best.