Sheikh Yûsuf al-Qâsim
The rental contract between a Muslim and a non-Muslim may be for either a lawful or unlawful purpose. The contract will be lawful if the tenant’s purpose is lawful.
If the tenant’s purpose is unlawful – like a tenant who wises to rent the place for selling liquor or establishing a brothel – then the contract will be unlawful. It would also be unlawful if the premises is being let out for the direct promotion of the tenant’s faith, like the erection of a church or a temple. Rental revenues earned from such an arrangement would be unlawful wealth.
Lawful rent can be collected when the property is being rented for use in a lawful capacity, like a residence or for the funeral procedures under question. This is a lawful rental, since the objective for which the facilities will be used is permissible in its broad essentials. Preparing bodes for burial is not something unique to the unbelievers.
However, renting out the facility should not bring about negative consequences greater than the benefit the owner of the property will receive from its rental income.
And Allah knows best.
Source: Islam Today