Property lease agreements

  • Before signing a lease agreement, it is important to ask the landlord how high the rent is, whether or not an up-front deposit is required and how rent is to be paid.
  • You should also ask whether or not electricity, heating and water are included in the rent, when the flat will be free and when rent payments are to be made.
  • Lease agreements set out the rights and obligations of both the tenant and the landlord. Not having a lease agreement places the tenant in an insecure legal position, and housing benefit can be applied for only upon presentation of a lease agreement.
  • In the event of a dispute between the tenant and the landlord when drafting or implementing a lease agreement, the case may be referred to the Property Lease Complaints Committee. The procedure is free of charge for the parties to the case.
  • The lease agreement must be officially registered if the intention is to apply for housing benefit. This is done with a district commissioner.
  • Lease agreements must be in writing. See lease agreement forms
  • Lease agreements may be temporary or indefinite.
  • As with all types of contracts, you should read your lease agreement carefully before signing.
  • In the case of an oral lease agreement, the same provisions apply as to indefinite contracts.
  • The landlord and tenant are free to agree upon a rental amount, but under Icelandic law, this amount must be fair to both parties.
  • The notice period for termination of lease agreements can vary according to such things as whether or not the agreement is temporary or indefinite.
  • When terminating a lease agreement, it is safer to do it in writing and in a verifiable way, e.g. by registered mail.
  • For further information on notice periods for termination and deposits, see here.
  • For detailed information on property leases, see the website of the Ministry of Social Affairs and Social Security.
  • See also: