Registration of a lease in the HMS Rent Register

The HMS Rent Register keeps track of the electronic registration of leases and is part of the HMS (Housing and Construction Authority) housing database. The rent contract database provides better data on the rental market, such as changes in rental prices and the length of leases, and that data can then be used by authorities in developing housing policy.

Electronic leases simplify life for both landlord and tenant.

• Parties provide signatures electronically.

• Witnesses´ signatures are not necessary.

• Registration of leases at the District Commissioner’s office, (Sýslumaður) is no longer a condition for receiving housing benefits.

• Information regarding rental amounts are automatically entered into the parties´ annual tax statement form.

When drafting a lease, an inspection must be made by the parties of the condition of the rental unit, including fire safety, and the following results recorded in the appropriate section of the lease.

Registration

Landlords who rent out more than two apartments, are legally obliged to register their leases in the Rent Register within 30 days of signature.

If the landlord has not registered the lease when the rent starts, the tenant can register the lease in the Rent Register.

The process

Both the landlord and the tenant can authorize an agent to sign the lease on their behalf. For example, when the landlord lives abroad.

Cost

Electronic leases are free of charge for both the tenant and the landlord, except if the landlord chooses to buy the service from the registration agent, in which case the landlord pays.

Is the lease registered in the HMS Rent Register?

• If the lease is registered electronically with an authorized registration agent, it is automatically registered in the HMS Rent Register.

• If the lease is on paper, it may take several days from the day we receive it, to register it in the HMS Rent Register.

Lease extension

• Electronic leases can be easily extended with your chosen registration agent.

• Even if an earlier lease was not made electronically, the new lease still must be.

Condition and fire inspection

The tenant and landlord (or their agents) must make an inspection of the condition of the rental unit, including fire safety, and record the results in the appropriate section of the lease.

If one of the parties requests an independent inspection conducted by an outside inspector, that request shall be granted. The cost of the inspection is then divided equally between the tenant and the landlord.

Good to keep in mind when conducting a condition and fire inspection:

• What is the landlord's ownership or involvement in the rental unit?

• Is there any noted damage?

• Have there been any renovations or repairs?

Statement of condition inspection of the rental unit

Lease on paper

A signed lease can be submitted on paper for registration in the HMS Rent Register by fee. For this to be possible all parties to the lease must sign it, plus two witnesses. The lease also has to contain the main findings of a fire and condition inspection, conducted by either the landlord or the tenant, not necessarily a professional inspector. 
The lease will be registered when the landlord has paid for the registration and the contract submits all conditions.

Cost

Registration of a lease on paper in the HMS Rent register is 2.700 ISK
The landlord will receive an invoice and pays for the registration.

Laws and regulations

• Rent Act no. 36/1994

• Regulation on the Housing Appeals committee. no. 1355/2019

• Act on Housing and Construction Authority no. 137/2019

  (15. gr.)

• Housing Act no. 44/1998

  (4. gr. 6. og 46. gr.)

• Housing Benefits Act no. 75/2016

  (9. gr. d. og 12. gr.)

• Income Tax Act no. 90/2003

  (66. gr. og 70. gr. 5. a.)