A tenancy involves rights and duties for both the tenant and the landlord. In Iceland these are set by the Rent Act (húsaleigulög), and many of its rules protect tenants and cannot be waived. Knowing them helps prevent disputes.
The lease agreement
The lease agreement (leigusamningur) is the basis of the tenancy. It sets the rent, the term, the notice period and other key points. Leases can be fixed-term or indefinite, and a fixed-term lease generally cannot be ended early unless the contract allows it.
A written lease is always safer. Registering the lease is also required if you want to apply for housing benefit (húsnæðisbætur).
Deposit
Landlords usually ask for a security deposit (tryggingarfé). It may not exceed three months' rent and must be held in a way that protects the tenant. After you move out, the landlord must return it promptly unless there is a justified claim against it.
The landlord's duties
The landlord must hand over the property in the agreed condition and carry out necessary maintenance. The home must be fit to live in and meet safety and health standards.
Rent can only be increased as the lease and the law allow. Many leases are index-linked to the consumer price index, so check this clause before you sign.
The tenant's duties
The tenant must pay rent on time, take good care of the property and follow the terms of the lease. Tenants are liable for damage they cause beyond normal wear and tear.
Notice and moving out
The rules on notice depend on the type of lease and property, and notice must be given in writing. When you move out, disputes often arise about the condition of the property and the deposit.
Documenting the condition with photos at the start and end of the tenancy is the best way to avoid them.
When a dispute arises
Disputes about rent, repairs or deposits can be taken to the Housing Complaints Committee (Kærunefnd húsamála), free of charge. A lawyer can assess your position and help resolve the matter. These cases fall under real estate and property law.
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