Rent out houses in Iceland

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As a landlord, you can rent out all types of housing and sublet all types of residential leases. With us, you can rent out both private housing and other types of housing. We make it easy for you to make your housing rental.

Guide: Renting out house in Iceland

When renting out house in Iceland, you as a private landlord, administrator or property company must be sure to do so in a very structured process. In this way, you ensure that you get a decent tenant and get the optimal rental income while at the same time ensuring that everything is legal.

We have created this guide to renting out private homes and housing, including renting out apartments , renting out rooms, and renting out houses and villas.

1. Create a profile of the tenant you want

It is a really good idea to start by creating a profile of the tenant you want to rent the rental property you own to. For example, should it be a single person or a family and what should the tenant's income level and work area be.

2. Describe your house in Iceland and the rental principle

Once you have found out what type of tenant you want, it is obvious that you describe your rental property in a kind of sales list with description, data, rent. In connection with this, you must decide with yourself whether you want to rent for a limited time or for an unlimited time.

In connection with setting the rent, it is important that you are aware that special rent levels apply to some homes.

3. Marketing the lease

Now you are ready to market the lease. Fortunately, you can do this on Housingtarget.com, which is one of Europe's largest portals for leased homes. You can create an ad on Housingtarget.com directly here.

You can also choose to contact tenants who are looking for a lease directly via the directory of home seekers on Housingtarget.com.

4. Check out the tenant thoroughly before signing the contract

It is important that you do not just sign an agreement with the first and best tenant. There can be many negative consequences of renting to the wrong tenant, including that the lease is not handled properly or that you do not receive rent for a period of time. You can, for example, investigate whether the tenant has debts with the Danish Housing Fund or the Debtor Register.

5. Get a proper lease contract drawn up by a professional

Once you have found a tenant that you want to rent to, it is important that you get a proper rental contract drawn up by, for example, a lawyer. This way, you are both protected, and there can be no misunderstandings in connection with the rental period.

A rental contract must include information about the following:

  • Information about the tenant and the landlord
  • Information about the lease
  • Use (that the lease may only be used for residential purposes)
  • Rent level
  • Rent period
  • Notice of termination
  • Prepaid rent
  • Deposit
  • Cleaning obligation
  • No pets
  • No smoking/Smoking allowed
  • What is the consumption, e.g. heating
  • Can the lease be sublet?

It is a good idea to have a notice of termination of 3 months, so that you have the opportunity to find a new tenant if the rental property is terminated.

The rent must be in accordance with the applicable rules for rent levels.

The deposit is recommended to be at least 2 months' rent. The deposit must be deposited in a separate bank account, and the tenant must have access to see the balance in the account.

The tenant must clean the rental property when the rental period expires. The landlord must ensure that the rental property is cleaned before the tenant takes it into use.

6. Sign the rental contract

It is important that the rental contract is signed so that both parties have a copy of the contract

7. Make a move-in report

It is a really good idea to make a move-in report that describes the condition of the rental property at the beginning of the rental. This makes it easier to assess how much of the deposit must be refunded when the rental ends. The report must be signed by both the tenant and the landlord.

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