While the best solution is to secure housing or accommodation before you move to Iceland this may not always be possible. If you are in need of temporary housing finding a small hotel or guesthouse (costing less in winter than summer) may be the best short term option while you are looking. The least expensive is probably the Youth Hostel (Farfuglaheimilið), Sundlaugavegur 34, 105 Reykjavik. Tel:               (354) 553 8110       . For a listing of hotels and guesthouses in Iceland go to: www.gisting.is.

    The Icelandic market for privately owned homes and apartment flats is large, around 75-85% of the housing stock. The market for rentals is, therefore, limited. The rent in Reykjavik and the capital area is generally more expensive than in most other towns. To find an apartment you may want to use all of the tips below.

*    NEWSPAPERS- In the newspaper you will find ads from homeowners who wish to rent out their flats. Sometimes an offer is required, in other words, the prospective tenant will have to specify how much rent they are willing to pay for that particular apartment. You can get advice from any real estate or rental agent. People may also put their own ads in the papers. The advert may include the size of the family, the number of rooms required, the area you would prefer, and often whether the family is a smoking or non-smoking one. Obviously, the name of the contact person and telephone number or e-mail must also be included in the advert.

*    WORD-OF-MOUTH- Tell everyone you know, even people you work with that you are looking for an apartment. Often apartments for rent are not advertised in the papers as they are rented through acquaintances.

*    THE RENTAL AGENCY (LEIGULISTINN)- In exchange for a monthly fee of kr. 2,850.00 this agency provides their customers with a current list of all available housing for rent. Call everyday and ask if there are any new listings. Leigulistinn, Skipholt 50b, 105 Reykjavík,               511 1600       , www.leigulistinn.is.

*    HÚSNÆÐISMIÐLUN STÚDENTA- This agency has a list of available apartments for university students. The service is free of charge. www.studentamidlun.is. 
 

SIGNING A LEASE OR CONTRACT OF TENEMENT

Before signing a lease you may want to have the rental apartment inspected by a professional estimator (byggingameistari og matsmaður). Professional estimators can go over the apartment and give their opinion on the rental price and the rental terms. They can also point out any damage that is present in the rental and issue a statement about such damage. Any damage seen or unseen is important to note before signing a lease so that you don’t run the risk of getting blamed for the damage or asked to make payments on the repairing of damages that where already in the rental before moving in.

    When you have found the right apartment and both parties have reached an agreement you will be asked to sign a contract called a ‘leigusamningur’. As with all legal documents it is advisable to make sure that you know exactly what you are signing. This lease is a special form that you and the owner both must sign. It must also be witnessed. After signing, this contract is registered or notarised (þinglýst) at the district commissioner’s office (Sýslumaðurinn). This is necessary when applying for rent subsidy or húsaleigubætur.

According to the law, in the case of a legally registered rental agreement, the owner may not force the renter to pay more than one month’s rent in advance if insurance is given in the form of cash, promissory note or bond. By law if the renter pays four months in advance then the renter has the right to be in the apartment three times longer than the agreement says or for twelve more months. It is possible to find leases or contracts of tenement at most banks, post offices, on the Internet or in any Social Services (félagsþjónustan) office. To have your lease registered, go to the District Commissioner (Sýslumaðurinn). The cost is kr.1300 and it takes about 2 business days to complete the process.

TERMINATING A LEASE OR RENTAL AGREEMENT

When filling out a lease keep in mind that all terms pertaining to the lease should be included. State clearly in the lease the length of the rental time and the notice period required if either party wants to terminate the agreement. According to the Rental Act the lawful period of termination notice is 6 months for both parties, the renter and the owner of the apartment. It is not uncommon that those involved in a lease request a shorter termination period. This period should be stated clearly in the lease. A shorter termination period is, for instance common in cases where the owner is trying to sell the property. Be aware that even if there is no signed lease the legal termination notice time is 6 months. That means that if you and the owner have decided not to sign a lease, both parties, by law must give 6 months notice if deciding to move out or end the agreement. In this case it may be necessary to show proof of the agreement by providing receipts for rent paid. For further information call us at Ahus               530 9300       .

RENT SUBSIDIES (HÚSALEIGUBÆTUR)
All those who are renting an apartment, have signed a lease for at least 6 months, and have a legal address in Iceland may apply for compensation. Applications are in the reception areas of your local Social Services office (Félagsþjónustan). Each application is valid for one calendar year; therefore applications must be renewed at the beginning of each year.

WHEN YOU SUBMIT THE APPLICATION YOU MUST HAVE THE FOLLOWING:

• The legally recorded lease. To have your lease registered, you need to go to the local District Commissioner (Sýslumaðurinn). The cost is kr.1, 300 and it takes about 2 business days to complete the process.
• An official copy of last year’s tax form from all persons living at the residence. Available at the tax office (Skattstofa) and costs kr. 200.
• Pay slips for the last 3 months from each household member earning wages.
• If you are a student, are over 20 and have been a student for at least 6 months, you must show proof that you are enrolled in school and in what course of study.
• Proof that you are legally registered at the address of the rental apartment. Available at the Statistical Bureau (Hagstofa Íslands).

EARNINGS, FAMILY SITUATIONS AND THE AMOUNT OF RENT BEING PAID ARE USED TO CALCULATE RENTAL SUBSIDIES. PEOPLE WHO QUALIFY FOR RENT SUBSIDIES SHOULD BE AWARE OF THE FOLLOWING:

• The minimum subsidies for the lowest income group for each apartment are kr. 8,000.
• The amount increases if you have children: kr. 7,000 for the first child, kr. 6,000 for the second child and kr. 5,500 for the third child.
• In addition to the minimum (kr. 8000) you can receive 15% of the rent, which lies between kr. 20,000-50,000.
• One never receives more than 50% of the rent.
• One never receives more than kr. 31,000.
• The subsidy is not taxable but must be listed on tax returns.
• The reimbursement is paid once a month, no later than the 5th of every month.
• Earnings and property over a certain amount may lower the subsidy amount.
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