In Iceland, the typical lease term for renting a property is one year. The standard lease agreement is usually signed for a 12-month period, after which either party can choose to renew or terminate the agreement.
Furnished vs. Unfurnished Properties
Furnished rental properties in Iceland come with basic furniture and appliances such as a bed, couch, and refrigerator. Unfurnished properties, on the other hand, do not include any furniture or appliances.
In general, furnished properties in Iceland include the following items:
- Linens and bedding
- Dresser or wardrobe
- Sofa and/or chairs
- Coffee table and/or end tables
- Dining table and chairs
- Kitchen appliances (e.g. refrigerator, stove, oven)
- Basic kitchen utensils (e.g. plates, glasses, silverware)
- Basic home appliances (e.g. washing machine, vacuum cleaner)
It is important to note that the specific items included in furnished properties can vary depending on the landlord and the rental property.
Standard Clauses in a Lease Agreement
The standard clauses in a lease agreement in Iceland include the following:
- Description of the rental property
- Rent amount and payment terms
- Maintenance and repair responsibilities
- Restrictions on use of the property (e.g. no smoking, no pets)
- Termination and renewal provisions
- Security deposit information
- Subleasing provisions
- Late fees
- Insurance requirements
Additional clauses that may be included in a lease agreement in Iceland, but are not mandatory, include:
- Specific lease term length
- Renewal provisions
- Renewal notice provisions
- Assignment and subletting provisions
- Termination provisions
- Repairs and maintenance provisions
- Liability provisions
- Utilities and services provisions
Expats should be especially aware of the following when signing a lease agreement in Iceland:
- The language used in the lease agreement. It is important to ensure that they fully understand the terms and conditions of the agreement.
- The rent amount and payment terms. Expats should make sure that they are aware of the amount of rent they will be paying and the frequency and method of payment.
- Maintenance and repair responsibilities. It is important for expats to understand their responsibilities for maintaining and repairing the property.
- Termination and renewal provisions. Expats should make sure that they understand the terms and conditions for terminating or renewing the lease agreement.
Condition reports are not common in Iceland before signing a lease agreement. However, it is a good idea for expats to take photos or video of the rental property before they move in to document its condition. This way, they can use the photos as evidence if there is any dispute over the property’s condition at the end of the lease.
Letting Agent Qualifications and Licenses
In Iceland, letting agents are not required to have specific qualifications or licenses. However, it is a good idea to work with a reputable and experienced letting agent who has a good reputation in the industry.
Association or Organisation
There is no specific association or organization in Iceland which reputable letting agencies must be a member of. However, it is a good idea for expats to work with a reputable and experienced letting agent who has a good reputation in the industry.