Renting a property in Iceland – Next Expat (2024)

Renting a property in Iceland is a popular option for both locals and expats. The rental market in Iceland is competitive, especially in the capital city of Reykjavik, and prices can be high. However, there are many options available for different budgets and preferences.

When looking to rent a property in Iceland, it is important to start your search early, as properties can be taken quickly. Online platforms such as Leiga.is, Bland.is, and Fasteignir.is can be helpful in finding available properties.

The rental process in Iceland typically involves the following steps:

Property viewing: Once you have found a property you are interested in, you can arrange a viewing with the landlord or property agent.
Application: If you decide to proceed with the rental, you will need to submit an application to the landlord or property agent. This typically includes personal information, employment details, and references.
Lease agreement: If your application is accepted, you will need to sign a lease agreement, which outlines the terms and conditions of the rental, such as rent amount, payment schedule, and length of tenancy.
Deposit: You will typically need to pay a deposit, which is usually equivalent to one or two months’ rent.
Utilities and services: In Iceland, renters are usually responsible for paying their own utility bills, such as electricity, water, and heating. Some properties may also include additional services, such as internet and cable television.
Move-in inspection: Before moving in, it is important to inspect the property with the landlord or property agent to ensure that everything is in working order and there is no damage.

It is important to note that renting a property in Iceland can be challenging due to the high demand, so it is recommended to be prepared and act quickly when finding a suitable property.

Renting in Iceland

Renting in Iceland is a common option for those who want flexibility in their living situation or who are not ready to commit to buying a property. Rental prices in Iceland can be high, especially in the capital city of Reykjavik, but they can vary depending on the location and size of the property.

To rent a property in Iceland, you will need to find available properties, viewings, and sign a rental contract. Most rental contracts are for a minimum of one year, although shorter-term rentals are also available.

It’s important to note that there are no rent control regulations in Iceland, which means that landlords are free to set their own rental prices. Additionally, the Icelandic government requires landlords to put up a deposit, which is usually equivalent to one or two months’ rent, to protect against any damage to the property or unpaid rent.

When renting a property in Iceland, it’s essential to make sure that the rental contract is clear and includes all relevant details such as the length of the lease, rent amount, and any other terms and conditions. It’s also important to inspect the property thoroughly before moving in and take pictures of any existing damage to avoid being charged for it later.

Popular places to rent in Iceland

Some popular places to rent in Iceland are Reykjavik, Kópavogur, Hafnarfjörður, Garðabær, and Akureyri. Reykjavik is the capital city and the largest city in Iceland, making it a popular choice for renters. Kópavogur and Hafnarfjörður are also part of the Greater Reykjavik area and are close to the capital. Garðabær is a suburb of Reykjavik known for its quality of life and proximity to nature. Akureyri is the largest town outside of the Reykjavik area and is located in northern Iceland. It is known for its vibrant cultural scene and outdoor recreational opportunities.

Types of property to rent in Iceland

In Iceland, there are several types of properties available for rent, including:

Apartments: These are the most common type of rental properties in Iceland. Apartments range in size from studio apartments to larger multi-bedroom units.
Houses: Houses for rent in Iceland can range from small cottages to large family homes.
Rooms: It is also possible to rent individual rooms in shared apartments or houses.
Vacation rentals: Iceland is a popular tourist destination, and vacation rentals, such as cabins or villas, are available for short-term rentals.
Commercial properties: There are also commercial properties available for rent, such as offices, shops, and warehouses.

The type of property that is available for rent and the rental price will depend on the location and the type of property.

Finding a place to rent in Iceland

If you’re looking for a place to rent in Iceland, there are several options available to you. Here are some ways to find a place to rent in Iceland:

Online classifieds: Websites like Leiga.is, Bland.is, and Mbl.is have classified sections where you can find rental properties.
Social media: You can find rental properties advertised on social media platforms like Facebook and Instagram. There are also groups on Facebook specifically dedicated to rental properties.
Real estate agents: Many real estate agents in Iceland also handle rental properties. You can find a list of agents on the Icelandic Real Estate Association’s website.
Word of mouth: Let people know you’re looking for a place to rent. You never know who might know of an available property.
Classified ads: The classified sections of newspapers like Morgunblaðið and Fréttablaðið often have rental listings.
Hostels: If you’re new to Iceland, consider staying in a hostel while you look for a rental property. Many hostels offer long-term stays at a reduced rate.

When you find a place you’re interested in renting, make sure to thoroughly read the rental contract and understand the terms before signing.

Property agents

In Iceland, property agents, also known as real estate agents or brokers, can be helpful in finding a place to rent. They usually have listings of available rental properties and can assist with the rental process. Some popular property agents in Iceland include:

RE/MAX Iceland
Eignamiðlun
Úrvalsmiðstöðin
Miklaborg fasteignasala
Metro Real Estate
BORG fasteignasala

It’s important to note that property agents in Iceland may charge a fee for their services, which is typically a percentage of the rental amount or a fixed amount.

Agencies specializing in expat rentals

There are some agencies in Iceland that specialize in expat rentals, such as:

Online property portals

There are several online property portals in Iceland that can be used to search for rental properties. Some of the popular ones include:

Leiga.is
Mbl.is
Bland.is
Heimavellir.is
Rent.is

These portals allow users to search for rental properties by location, property type, rental price, and other filters. They also provide information about the property, such as photos, floor plans, and contact details of the landlord or property agent.

Student housing

Student housing in Iceland is available through universities and colleges, as well as private companies that specialize in providing housing to students. The cost of student housing can vary depending on the location and the type of accommodation. It is important for students to research the options available to them and to make arrangements well in advance of the start of the academic term, as demand for student housing can be high in some areas. Some universities and colleges in Iceland have student housing offices that can provide information and assistance to students looking for accommodation. Additionally, there are several websites and resources available online that list student housing options in Iceland.

Flat shares

Flat sharing, also known as house sharing, is a popular option among students and young professionals in Iceland. By sharing a flat, individuals can split the cost of rent and other expenses, making it a more affordable option. Flat sharing can also be a great way to meet new people and make friends in a new city.

To find flat shares in Iceland, you can search on online property portals, classified ad websites, and social media groups. Some popular websites for finding flat shares in Iceland include Leigulistinn, Airbnb, and Facebook groups such as “Flateigar/Herbergisfélög Reykjavíkur.”

When searching for a flat share, it’s important to consider factors such as location, cost, and compatibility with potential flatmates. You may want to arrange to meet with potential flatmates beforehand to get to know them and discuss living arrangements and expectations. Additionally, it’s important to have a clear understanding of the rental agreement and your responsibilities as a tenant before signing any contracts.

How to rent a property in Iceland

To rent a property in Iceland, follow these general steps:

Determine your budget and what type of property you are looking for.
Search for properties online through property portals, classifieds websites, or through a rental agency specializing in the type of property you want.
Contact the landlord or rental agency to arrange a viewing of the property. During the viewing, take note of any issues or damages that may need to be addressed before moving in.
If you like the property, submit an application to the landlord or rental agency. This may include personal information, references, and a proof of income or employment.
Once your application is approved, sign the lease agreement and pay the required deposit and rent in advance.
Before moving in, ensure that any repairs or issues identified during the viewing have been addressed, and take note of any existing damages to the property in writing.
Pay rent on time and adhere to the terms of the lease agreement during your tenancy.

Note that the specifics of the rental process may vary depending on the landlord or rental agency, so it’s important to clarify any questions or concerns with them directly.

Renting through a property agency

Renting through a property agency in Iceland is a common practice. These agencies have listings of available rental properties and can help with the rental process.

To rent through a property agency, you will need to first find an agency that specializes in the type of property you are looking for. You can do this by researching online, asking for recommendations from friends, or looking at advertisem*nts in local newspapers.

Once you have found an agency, you will need to provide them with information about what you are looking for in a rental property, including your budget, desired location, and any other specific requirements. The agency will then provide you with a list of available properties that meet your criteria.

If you find a property that you are interested in renting, the agency will arrange a viewing for you. If you decide to proceed with the rental, you will need to sign a rental agreement and provide a security deposit. The agency will typically handle the rental payments and any necessary repairs or maintenance during the rental period.

It is important to note that rental properties in Iceland are often in high demand, particularly in Reykjavik and other urban areas. This means that it can be competitive to secure a rental property, and you may need to act quickly to secure the property you want.

Rental costs in Iceland

Rental costs in Iceland can vary depending on the location, size, and type of property. In general, the cost of living in Iceland is relatively high, and this is reflected in rental prices.

According to 2021 data from Numbeo, the average monthly rent for a one-bedroom apartment in the city center of Reykjavik is around 200,000 ISK (approximately 1,500 USD), while outside the city center, it’s around 165,000 ISK (approximately 1,200 USD). The average monthly rent for a three-bedroom apartment in the city center is around 350,000 ISK (approximately 2,600 USD), while outside the city center, it’s around 260,000 ISK (approximately 1,900 USD).

It’s worth noting that rental costs can be higher in popular tourist areas or during peak tourist seasons. Additionally, utilities such as electricity, heating, and water are often not included in the rental price and will need to be paid separately.

Monthly rent

The monthly rent for a property in Iceland can vary greatly depending on factors such as location, property size, and type. For example, in Reykjavik, the capital city, a one-bedroom apartment could cost anywhere from 150,000 ISK to 250,000 ISK per month, while a larger apartment or a house could cost up to 500,000 ISK or more per month. Outside of Reykjavik, rental costs tend to be lower, with one-bedroom apartments costing around 100,000 ISK to 150,000 ISK per month, and larger properties costing up to 300,000 ISK per month or more. It’s important to note that these prices are only approximate and can vary depending on a variety of factors.

Rental deposit

In Iceland, it is common for landlords to require a rental deposit from tenants before they move in. The amount of the deposit can vary but is usually equivalent to one or two months’ rent. The deposit is held by the landlord or the property management company and will be returned to the tenant at the end of the rental period, provided there is no damage to the property or unpaid rent. It is important to carefully review the terms of the lease agreement regarding the rental deposit before signing the contract.

Agency and administration fees

In Iceland, rental agencies may charge a one-time administration fee to cover the cost of processing the rental agreement and performing background checks on the tenant. This fee can vary, but it typically ranges from 20,000 to 50,000 Icelandic krónur (ISK) or more. It is important to clarify with the agency if there are any additional fees before signing the rental agreement.

Social housing in Iceland

In Iceland, social housing is known as “state housing” and is provided by local municipalities for low-income households or those in need. The Icelandic State Housing Fund is the national body responsible for providing social housing in Iceland. However, the demand for social housing in Iceland is high, and waiting lists can be long.

To apply for state housing in Iceland, you will need to contact your local municipality and fill out an application form. The application will be assessed based on a number of factors, including your income and the size of your household. If you are eligible, you will be placed on a waiting list.

It is important to note that the availability of social housing in Iceland is limited, and not all applicants will be successful in obtaining a state housing unit. Therefore, it is advisable to explore other options for housing while waiting for a state housing unit to become available.

Tenancy contracts in Iceland

In Iceland, tenancy contracts are typically written agreements between the landlord and the tenant. The contract sets out the terms and conditions of the tenancy, including the duration of the lease, the rent amount and payment terms, the notice period required to terminate the lease, and any other relevant information such as utility bills and maintenance responsibilities.

It is important to thoroughly review and understand the terms of the tenancy agreement before signing it, as it is a legally binding document. Tenants should also make sure that they receive a copy of the signed agreement for their own records.

In Iceland, tenancy contracts can be either fixed-term or indefinite. Fixed-term contracts are for a specified period of time, after which the lease may be extended or terminated. Indefinite contracts, on the other hand, have no specified end date and can be terminated by either party with appropriate notice.

Tenants in Iceland also have certain legal rights, such as the right to a safe and habitable living environment, the right to reasonable notice before any rent increases or eviction, and the right to have their security deposit returned at the end of the tenancy, provided there is no damage to the property.

Tenant rights and obligations

As a tenant in Iceland, you have certain rights and obligations that you should be aware of. Here are some of the key points:

Rights:

The right to privacy: The landlord cannot enter the property without your permission or without giving you reasonable notice.
The right to a safe and habitable property: The landlord must ensure that the property is safe and meets certain health and safety standards.
The right to repairs: If there are any issues with the property that affect your health and safety, the landlord is responsible for fixing them.
The right to a written tenancy agreement: This should outline the terms of the tenancy, including the rent, the length of the tenancy, and any other important details.

Obligations:

Paying rent on time: You are responsible for paying the rent on time and in full.
Keeping the property clean and tidy: You are responsible for keeping the property in a clean and tidy condition.
Reporting any repairs needed: If there are any issues with the property that affect your health and safety, you must report them to the landlord as soon as possible.
Not causing damage to the property: You are responsible for not causing any damage to the property and for paying for any damage that you do cause.

It’s important to note that these are just some of the key rights and obligations. The exact details may vary depending on your tenancy agreement and the specific circ*mstances of your tenancy. If you have any questions or concerns, it’s a good idea to talk to a legal professional or housing expert.

Landlord rights and obligations for rent in Iceland

Landlords in Iceland have certain rights and obligations when it comes to renting out their properties. Some of the key rights and obligations include:

Rights of landlords:

Right to collect rent: The landlord has the right to collect rent from the tenant, usually on a monthly basis.
Right to enter the property: The landlord has the right to enter the property to carry out repairs or inspections, but they must provide the tenant with reasonable notice.
Right to terminate the tenancy: The landlord can terminate the tenancy if the tenant violates any of the terms of the rental agreement or if they fail to pay rent.

Obligations of landlords:

Maintain the property: The landlord is responsible for ensuring that the property is in a habitable condition and that any necessary repairs are carried out.
Provide a written rental agreement: The landlord must provide the tenant with a written rental agreement that outlines the terms and conditions of the tenancy.
Protect the tenant’s deposit: The landlord must place the tenant’s deposit in a designated bank account and return it to the tenant at the end of the tenancy, minus any deductions for damage or unpaid rent.
Respect the tenant’s privacy: The landlord must respect the tenant’s right to privacy and provide reasonable notice before entering the property.
Follow the law: The landlord must comply with all relevant laws and regulations governing tenancy agreements and rental properties in Iceland.

It is important for both landlords and tenants to understand their rights and obligations in order to ensure a smooth and successful tenancy.

Where to go in the event of a rent dispute in Iceland

In Iceland, if there is a dispute between the landlord and the tenant, the first step is to try to resolve the issue through negotiation. If the negotiation fails, both parties can seek assistance from the Housing Complaints Committee (Íbúðamálastofnun) which is responsible for resolving disputes between landlords and tenants.

The Housing Complaints Committee can provide assistance in cases such as rent increases, repairs, subletting, and eviction. If the committee is unable to resolve the dispute, the case can be taken to the court system.

It is important to note that both landlords and tenants have rights and obligations that are outlined in the rental agreement, and it is advisable to seek legal advice if a dispute arises.

Utilities and telecommunications in Iceland

Utilities and telecommunications in Iceland are generally of high quality and are accessible throughout the country. Here is some information on the different types of utilities and telecommunications services available in Iceland:

Electricity: Electricity is provided by Landsnet, which is a national grid company that transmits electricity to distributors throughout the country. The distributors then sell electricity to consumers. The electricity supply in Iceland is stable and reliable.
Water: The water supply in Iceland is generally of high quality, and tap water is safe to drink. The majority of Iceland’s water comes from natural sources, such as glaciers and springs. The water supply is managed by municipal authorities.
Heating: Most homes in Iceland are heated using geothermal energy. This is a cost-effective and environmentally friendly way to heat homes.
Internet and telecommunications: Iceland has a well-developed telecommunications infrastructure, with good coverage throughout the country. The main telecommunications provider in Iceland is Siminn, which offers a range of services including mobile phone, internet, and television.
Waste disposal: Waste disposal in Iceland is managed by municipal authorities. Most households have access to a recycling center, and waste is collected regularly.

Overall, utilities and telecommunications in Iceland are of a high standard and are accessible throughout the country.

Moving in and moving out in Iceland

Moving in and moving out of a rental property in Iceland involves several steps and considerations.

When moving in, the tenant is expected to inspect the property and report any damages or issues to the landlord or property management company as soon as possible. It is also important to take note of the condition of the property, such as any scratches, holes or damages to walls, floors, and doors. This information can be included in a move-in report or checklist that is signed by both the tenant and the landlord.

The tenant is also responsible for setting up utility accounts for services such as electricity, water, and heating. In most cases, the tenant will be required to pay a deposit to the utility company, which will be refunded when the tenant moves out, provided there are no outstanding bills.

When moving out, the tenant should give notice to the landlord or property management company as early as possible. This is typically done in writing, and the notice period is usually specified in the tenancy agreement. The tenant is expected to leave the property in the same condition as when they moved in, minus reasonable wear and tear.

The tenant is also responsible for arranging the final meter readings and settling any outstanding bills with the utility companies. The landlord or property management company will then inspect the property and deduct any damages or outstanding bills from the tenant’s security deposit. If there is any remaining balance, the landlord or property management company will return it to the tenant.

It is important for both the tenant and the landlord to understand their rights and obligations when moving in and out of a rental property in Iceland. Any disputes should be addressed promptly and in accordance with the tenancy agreement and Icelandic law.

Tips for renters in Iceland

Here are some tips for renters in Iceland:

Research the rental market: Research the rental market in the area you want to live in to get an idea of rental prices and availability.
Use a reputable rental agency: Use a reputable rental agency when looking for a rental property in Iceland to ensure you are dealing with a professional and trustworthy company.
Read your rental contract: Carefully read your rental contract and ensure that you understand all the terms and conditions before signing.
Take photos of the property: Take photos of the property when you move in to document its condition, and do the same when you move out.
Know your rights: Know your rights as a tenant in Iceland and what your landlord is responsible for, such as repairs and maintenance.
Pay your rent on time: Always pay your rent on time to avoid any potential issues or disputes with your landlord.
Respect the property: Take good care of the rental property during your tenancy, and leave it in the same condition as when you moved in when you move out.
Give notice when moving out: Provide sufficient notice to your landlord when you plan to move out, as specified in your rental contract.
Set up your utilities: Set up your utilities and telecommunications when you move in, and ensure you understand how to pay for them.
Get renters insurance: Consider getting renters insurance to protect your personal belongings in case of theft, damage or loss.

Renting a property in Iceland