Rent and notice of termination
Uppsagnarfrestur og tryggingafé
Notice of termination:
It is only permissible to give notice when the period of rent is not stipulated in the contract. If the contract specifies a certain time frame, it runs out in due course and cannot be terminated unless specifically mentioned in the contract. If not specified, the period of rent ends on the agreed date without any further notice.
If the contract on the other hand does not specify any length of time, notice must be at least one month if the rented abode is a room or six months if an apartment. If the apartment has been rented to the same people for five years or longer, notice must be given at least a year in advance. Notice is mutual, i.e. valid for both the landlord and the tenant.
The landlord and the tenant can reach an agreement on shorter terms of notice as long as the agreement is mutual.
Security deposit:
If the tenant has paid a security deposit, the landlord must repay it when the tenant moves out. Under usual circumstances, the landlord may not dispose of or use any of the deposit without the permission of the tenant. On the other hand, if a judgement has been passed on the tenant for liability for damages, for example for damage to the house, the landlord may use the deposit. He may also use it towards unpaid rent. If the landlord expects to make a claim on the security deposit, he must do so as soon as possible and no later than two months from the end of the rental time.
If the tenant and the landlord cannot agree on compensation for damages to the property, the town surveyor (byggingafulltrúi) will assess the damage. The surveyor works for the municipalities and can be reached through the town council. The concerned parties can though, within two months from the time the town surveyor reached his decision, demand that a court appointed appraiser assess the damage.
Should disputes still arise, the matter can be referred to the housing judicial committee which is housed in the Ministry of Social Affairs and Social Security. The tenant can also demand a refund of his deposit, or the landlord demand compensation for damages before the court.
