FSRE’s rent is intended to cover routine maintenance, mandatory public fees, insurance, and costs related to property management and ownership.

FSRE’s responsibilities focus on general maintenance of the properties. When it comes to alterations or renewal of facilities and/or equipment, the tenant must obtain budget authorization to cover the increased rent resulting from the requested changes and improvements.

Rent is indexed to the consumer price index and is adjusted at the beginning of each year in line with changes to the index. It is stipulated that lease agreements may be amended in accordance with the general policy of the government regarding state-owned properties.

The landlord pays the following operating expenses:

• Public fees collected by municipalities, including property tax and land lease payments.

• Premiums for mandatory fire insurance on buildings.

The tenant pays all other operating costs for the premises, including (not an exhaustive list):

• Maintenance of keys, key systems, and other minor items.

• Window blinds, including sun-shading blinds, cleaning, and replacement of them.

• Installation and operation of telephone systems and related equipment.

• Any specialized equipment and custom fittings required for the tenant’s operations.

• Polishing and other surface treatments of vinyl flooring and other floor materials.

• Purchase and cleaning of loose carpets in the premises.

• Operation of access-control and security systems.

• Any telecommunications and reception equipment needed for the operations, including TV and audio systems.

• Cleaning of the leased premises, indoors and outdoors, including window washing.

• Cleaning of ventilation ducts, grilles, and vents, as well as floor drains and water traps.

• All energy costs, such as heating and lighting of the leased premises.

• Cost of water consumption where separately metered.

• Proportional cost of janitorial services, cleaning, and other shared maintenance, as well as heating, lighting, and water use in common areas.

• Replacement of all light sources, such as fluorescent tubes and bulbs.

• Fees for connecting the fire alarm system to a monitoring station.

• Installation and maintenance of gate or barrier systems for parking areas.

• Maintenance of the site and vegetation. This also includes cleaning of drains and roof gutters.

• Snow removal around the leased premises and in parking areas, as well as de-icing and preventive measures against roof-snow hazards.

• Waste collection (if not included in the municipality’s property fees).

The landlord maintains the leased premises, both exterior and interior, in accordance with good property-maintenance practices. All work carried out by the landlord is based on a maintenance plan prepared at the beginning of each year. Expenditures are initiated through electronic requests sent to contractors. The landlord reserves the right to refuse payment of invoices incurred by the tenant without prior consultation.

The tenant must treat the leased premises responsibly and in accordance with the agreed use. Negligence may result in the tenant being required to contribute to maintenance costs.

The tenant is responsible for all equipment, fixtures, and devices necessary for their operations that do not fall under the landlord’s responsibility—whether loose equipment or fixed installations. If the leased premises or its accessories suffer damage, the tenant must take measures to minimize the damage as quickly as possible.

The tenant must allow access for tradesmen performing maintenance or improvements, without any rent reduction, even if their use of the premises is temporarily limited due to the work.

The landlord covers the cost of signage for the leased premises on the exterior of the building and in shared indoor areas, such as stairwells and other circulation spaces.
The landlord may delegate the tenant to handle the signage work, though the cost of such signage remains the landlord’s responsibility.

The tenant is responsible for all signage within areas used exclusively by the tenant and bears the cost of those signs.

The landlord adapts the premises to changing user needs and expanded activities, based on a specific agreement made in each individual case. Alterations to the premises and/or upgrades may result in an increase in rent.

The tenant and landlord must reach an agreement on such matters before any alterations, construction, or improvements are carried out, as any rent increase is subject to approval in each instance.

Low-voltage systems

The landlord provides basic cabling, junction boxes, and standard outlets for telephones, computers, and fire alarm systems. Cabling is installed in designated conduits. These obligations do not extend to dormitories, except regarding the fire alarm system.
The tenant pays for all other basic cabling and end equipment, including all security systems (camera, access control, and intruder alarms). In hospitals and nursing homes, the tenant also pays for cabling for radios, televisions, and nurse-call systems.

High-voltage systems

The landlord provides basic cabling for standard electrical outlets and light fixtures, as well as all wiring for electrical equipment and devices owned by the tenant that are necessary for their operations. High-voltage systems also include all outlets, fixed lamps for general lighting, the main switchboard, and distribution panels.
The tenant bears the cost of specialized lighting and replacement of light sources such as fluorescent tubes, starters, and bulbs.

Building management systems are generally intended to save labor or energy and to increase safety and oversight. Equipment installed for these purposes is considered tenant-specific equipment, while the landlord provides low-voltage cabling to the end devices. Exceptions may apply where the building management system also serves as the control system for ventilation and heating; in such cases, costs may be shared.

District heating

The landlord provides all district heating pipes, radiators, and intake equipment.

Potable water

The landlord provides all drinking water pipes and intake equipment.

Swimming pools and hot tubs in healthcare institutions and schools

The landlord handles all basic piping, while the tenant is responsible for pumps, filters, chlorine dispensers, and other specialized equipment.
The landlord handles surface maintenance on built-in pools or hot tubs, while the tenant is responsible for the maintenance of “loose” pools and tubs that are not part of the building’s structural systems.

Cooling equipment

The landlord handles basic piping, e.g., to server rooms and cooling rooms in vocational schools and hospitals.
The tenant handles all end equipment and connections, such as compressors and cooling elements.

Drainage

The landlord provides all standard drainage pipes and installs septic tanks and grease traps as needed per public health requirements.
The tenant is responsible for pumping and cleaning grease traps and septic tanks.

Gas piping and compressed air

The landlord provides all basic gas piping, e.g., in hospitals and vocational departments, while the tenant handles all end equipment and connections. Piping is installed in conduits or on appropriate mounts.

General ventilation

The landlord provides all standard workplace ventilation required by building regulations, including mechanical and control equipment. The landlord is also responsible for regular and contractually required inspections of ventilation systems, routine replacement of air filters, and inspection and sanitization of humidification and purification equipment.

Specialized ventilation

The landlord provides trunk lines and exhaust fans.
The tenant is responsible for specialized end equipment, such as fume hoods, filtration equipment for operating rooms and isolation rooms, kitchen hoods and filters in teaching kitchens, cooling equipment in server rooms, and extraction arms for metalwork and spray booths. Wood-dust extraction systems are entirely the tenant’s responsibility, as is the cost of independent humidification units.

Indoor air and humidity

Poor indoor air quality is a recognized health risk. The quality of indoor air can affect people’s health, causing symptoms such as dry eyes, irritation in the nose and throat, headaches, fatigue, and increased allergy or respiratory issues.

Signs of unhealthy indoor air can include heavy or stale air, mold growth, musty or persistent odors, and significant condensation or frost on windows. Human behaviour indoors can also affect air quality, such as poor cleanliness or smoking. By being aware of common risk factors in the surroundings, individuals can maintain and improve indoor air quality, reducing the likelihood of negative health effects.

It is important that the tenant familiarizes themselves with best practices for maintaining healthy indoor air and how to respond if air quality becomes poor. The Environmental Agency of Iceland provides a guidance booklet titled “„Indoor Air, Moisture and Mould in Housing”
If there is suspicion of moisture damage or mould in the leased premises, the tenant must notify the landlord, who will initiate the appropriate process.

Toilets

The landlord provides toilets along with support arms where needed.

Sinks

The landlord provides hand-washing sinks with standard mixing fixtures.

Showers

The landlord provides showers and related equipment where required by conditions and the working environment, such as in hospitals and sports facilities in schools.

The Fire Prevention Act No. 75/2000 and Regulation on Fire Safety and Fire Prevention Oversight No. 723/2017 . apply to fire protection. Reference should also be made to Chapter 9 of the Building Regulation and the detailed guidelines on the Housing and Construction Authority’s website regarding internal fire safety inspections for companies and institutions.
The regulation stipulates that the owner (the landlord in this case) and the operator of the premises (the tenant) must each appoint a fire safety officer responsible for fire protection and who serves as the contact point for the fire brigade’s fire-safety inspections. Clear responsibilities and division of tasks are crucial when it comes to fire safety.

The landlord is responsible for the building’s fire safety as prescribed in the Building Regulation. Responsibilities vary depending on the size of the premises and the nature of the operations. Examples of the landlord’s responsibilities include:

• Fire alarm system with connection to an approved monitoring station

• Fire compartmentation and smoke-tight sealing

• Evacuation routes, escape-route diagrams, and emergency and exit lighting

• Fire extinguishers and periodic inspections

The tenant appoints or fulfils the role of fire safety officer. Their responsibilities include, among other things:

• Participation in fire-brigade inspections

• Responsibility for internal fire-safety measures, such as evacuation plans and conducting regular fire-drill exercises

• Keeping escape routes unobstructed

• Ensuring staff know how to use fire-fighting equipment in case of a fire

• Electronic documentation of safety-management procedures

Lifts (elevators)

The landlord provides elevators in accordance with building regulations. The landlord pays for maintenance, the annual inspection fee of the Icelandic Administration of Occupational Safety and Health, and regular inspections by service providers.
The tenant is responsible for the installation and maintenance of lift equipment for swimming pools/hot tubs at healthcare institutions.

Ramps, slopes, and door openers

The landlord ensures accessibility for people with reduced mobility to the extent possible, in accordance with building regulations.

Kitchens – production kitchens (schools, hospitals, nursing homes, and larger institutions with more than 100 employees)

The landlord provides appropriate fittings, worktables with sinks, stoves with 2–4 burners, exhaust hoods, floor-standing griddles, steam ovens, dishwashers, and refrigerators and freezers suited to the scale of operations, along with the required sanitation equipment.

Kitchens – production kitchens (smaller institutions with fewer than 100 employees)

The landlord provides appropriate fittings, worktables with sinks, a stove with two burners, an exhaust hood, a baking oven, refrigerators and freezers suited to the scale of operations, a dishwasher, and the required sanitation equipment.

Canteens

The landlord supplies serving lines with heated counters and cooling units.

Break rooms

The landlord provides suitable kitchen fittings with a sink.

Pantries in hospitals

The landlord provides suitable kitchen fittings with a sink.

(Fittings other than kitchen installations)

Main reception

The landlord provides a reception desk or service counter in the institution’s main reception area.

Canteens and kitchens

See “Cooking"

Other fittings

The landlord provides shoe shelves in schools where students are required not to wear outdoor shoes indoors. The landlord also provides coat hooks in entryways where appropriate and in bathing/changing areas where applicable. The tenant supplies all clothing and personal-item lockers they deem necessary.

All other fittings — such as wardrobes, medicine cabinets and pharmaceutical fittings, fixed desks, bookshelves, storage shelves, and storage cabinets — are the tenant’s responsibility.

Workbenches and processing tables for vocational training, as well as walk-in refrigerators and freezers other than those in canteens, are also the tenant’s responsibility.

Equipment

The landlord provides a stove, a hood with a carbon filter, an oven, a dishwasher, and a refrigerator with a freezer. Standard TV antenna and outlets are also provided.

Decks and hot tubs

The landlord does not provide decks or hot tubs for official residences but maintains those already in place. The landlord may permit the tenant to install their own facilities.
The landlord does not install whirlpool baths—only standard bathtubs and/or showers.
The tenant is required to maintain the property grounds so that they remain presentable. If this is fulfilled, the landlord will perform additional maintenance if deemed necessary.

Garbage bins

The tenant pays for garbage bins. The landlord will arrange appropriate placement or enclosure for the bins as conditions allow.

• The tenant is required to maintain the grounds and immediate surroundings so that they remain presentable.

• The landlord undertakes minor landscaping work and covers the cost of finishing boundary areas, depending on available resources. Fences are not erected unless there is a strong reason for doing so.

• The landlord maintains asphalted or paved parking areas and walkways.

• If tenant requests for heated walkways or stairways are approved, the landlord will pay for those modifications.

• The landlord maintains outdoor lighting, while the tenant is responsible for replacing bulbs.

• The landlord installs cabling for electric vehicle and e-bike charging stations, but the tenant provides the end equipment.

The landlord maintains artworks that are part of the building structure, such as mosaics, insofar as it is feasible and reasonable. Any deviation from this principle must be done in consultation with the users. However, the landlord does not assume responsibility for maintaining painted wall decorations.

The landlord generally does not carry out repairs on freestanding artworks on the grounds, such as statues and sculptures, as these are often gifted to the institution in memory of former staff or in honor of the institution’s work. Artworks located on the grounds of art museums are entirely the responsibility of the museums themselves.

The landlord strives to preserve the original appearance and character of buildings, thereby contributing to the protection of cultural heritage. When maintaining protected buildings, the opinion and guidance of the Heritage Protection Committee should be sought when appropriate.

In such work, consideration must also be given to functional needs in the interior layout so that the building can properly serve its intended operations.

The definitions above serve as guidelines, but circumstances may vary between buildings. It may be in the landlord’s interest in some cases to go further in certain areas in exchange for concessions in others. It may also be justified for the landlord to contribute to equipment purchases if doing so avoids greater expenses elsewhere.
Likewise, situations may arise where the user wishes to contribute to the cost of a more expensive solution, equipment, or installation than the landlord is prepared to provide. Each case must be evaluated individually. It is important that comparable situations between users are resolved in a consistent manner.

General rules apply to safety matters regarding the respective roles of the landlord and the tenant. In short, the landlord is responsible for – and carries out – all legally required measures to prevent damage or accidents. This includes ensuring that the premises comply with safety requirements and that the necessary safety equipment is installed where required.

The tenant is responsible for prevention and preparedness relating to daily operations, conditions, and general conduct. (See also the Housing and Construction Authority’s guidelines on internal fire-safety inspections.) In other words, the tenant must take all reasonable measures to prevent damage or accidents that may arise from fire hazards, leaks, weather, or other conditions.

Serious damage or accidents related to property operations are most often caused by fire, water leaks, snow accumulation, ice, or natural disasters. Some incidents are unpredictable; others can be avoided through preventive measures and routine inspections.

Fire

If a fire breaks out or an alarm is raised, the following instructions from the fire brigade must be followed:

• Evacuate the premises and move people away from the danger zone

• Report the fire by calling 112

• Extinguish the fire if possible

When the fire brigade arrives, it takes command of the scene. Damage repairs will depend on the circumstances. Damage to the building itself is handled by the insurance provider, which usually oversees repairs. The tenant is responsible for damage to their own belongings. The landlord works to minimize disruption to operations during repairs.

Leaks and water damage

Water leaks are the most common cause of property damage. Extra caution is needed, as many incidents can be prevented with proper attention. The tenant is required to take necessary measures to avoid damage. Examples include monitoring water-connected equipment, replacing worn seals, clearing drains, maintaining routine inspections, and installing warning devices where significant risks exist. Staff must know where to shut off water intakes. The same general precautions apply as in private homes.

Snow, ice, and frost damage

Snow accumulation on roofs can cause damage or injuries, as can icicles. Ice on walkways may lead to accidents, for which the building operator may be held liable. Frost is also risky, with many examples of frost damage to water pipes, especially in ventilation systems and unheated rooms. The tenant is required to remain vigilant regarding weather changes—maintaining de-icing on walkways and stairs, ensuring snow overhangs or icicles do not cause damage, and monitoring for frost, snow load, or meltwater that may cause harm.

Insurance and compensation

Insurance and compensation related to financial loss follow Regulation No. 33/1988 on the State’s purchase of insurance (see the Ministry of Finance website). The main rule is that government institutions are not permitted to purchase insurance beyond what is legally required. Damage to items is generally paid from an institution’s operating or project funds. For major damages or accidents, the relevant ministry and the Ministry of Finance must be consulted regarding special compensation.

Damage to third parties

Under the Condominium Act No. 26/1994, the owner of a private unit is liable to other owners or users of the building for financial loss caused by faults in equipment or piping belonging to the private unit, even if the owner is not at fault. Many government institutions share buildings with others—for example, shops on the lower floor. A leak between floors can therefore cause significant consequential damage for which the owner or operator is responsible. Compensation follows the same rules as noted above under insurance.

Initial response

Initial response to accidents or incidents often falls to the users of the premises, until other and perhaps more specialized assistance arrives. It can be difficult to know whom to call in the moment. FSRE has prepared an overview sheet for tenants (see below) who do not have their own emergency procedures, designed to simplify actions in critical moments. The intent is for the tenant/housekeeper and the landlord/project manager to ensure the form is filled out, framed or laminated, and posted near water intakes, shutoff valves, electrical panels, break rooms, or other visible and accessible locations.