Landlord
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Landlords obligations
The landlord has obligations toward the tenant, the rental property, and the state. These include, among other things:
responsibility for maintenance of the property and the equipment, such as plumbing, electrical systems, windows, doors, and appliances
ensuring that the property is in habitable condition at the time of handover
providing clear and timely notices, for example regarding priority rights, termination, and changes to the rent
paying capital income tax on rental income where applicable; see further information on the website of the Icelandic tax authority.
Landlords rights
The landlord also enjoys rights under the law, including the right to:
receive rent paid on time
access the dwelling for necessary repairs, in consultation with the tenant
claim compensation or require repairs from the tenant if damage is caused by the tenant
have the property returned in the same or comparable condition, taking normal wear and tear into account
receive tax relief on capital income tax on rental income where applicable; see further information on the website of the Icelandic tax authority.
Lease agreement
The tenancy agreement is the fundamental document between the landlord and the tenant. According to legislation effective from 1 January 2026, a tenancy agreement must be in writing and registered in the HMS Rent Register.
In addition to basic information about the contracting parties and the property, the agreement must state, among other things, whether:
the lease concerns a room or an apartment
the agreement is for a fixed term or open-ended
costs such as heating or electricity are included in the rent
a security deposit is required and in what form
The agreement must also include information on:
the amount of rent
the payment date and method of payment
a condition report of the property
fire safety in the rental property
Amendments to a lease agreement
Changes to a tenancy agreement during the lease term are not permitted unless specifically agreed upon in the contract.
The landlord may request a change to the rent amount once more than 12 months have passed since the agreement entered into force. If no agreement is reached, the dispute shall be referred to the Housing Complaints Committee (Kærunefnd húsamála).
Sample notification forms that must be submitted to HMS can be accessed here.
Termination or Cancellation of a lease agreement
The notice period varies depending on the type of housing and the length of the lease term.
Termination must be in writing and sent in a verifiable manner, such as by electronic means.
A landlord may terminate an open-ended (indefinite-term) agreement in certain specified cases. The termination must be notified to HMS electronically.
A fixed-term agreement generally cannot be terminated before it expires, unless special provisions are included in the contract.
Cancellation (rescission) of a lease agreement is permitted for the parties in certain cases. It must be in writing and registered in the HMS Rent Register (Leiguskrá HMS).
Disputes regarding termination or cancellation may be referred to the Housing Complaints Committee.
Further information on leases and the termination or cancellation of tenancy agreements can be found here.
Laws and Regulations
Service provider
Housing & Construction Authority