How to Rent a Home in Iceland

Navigating the process of renting a home in Iceland for the first time can feel overwhelming. Numerous questions might arise: Should I consult a lawyer? Are appliances typically included in rentals? How can I discover quality rental properties? Which neighborhoods will best suit my needs? These are just the tip of the iceberg. Dive in for answers to these pressing questions and gain insights from our members who've made Iceland their home.

"Relocating to a new country can be a daunting task, especially when it comes to finding a place to live. If you're planning to move to Iceland, this guide will provide you with all the necessary information about renting an apartment. From finding a rental property to understanding the legalities involved, this guide will help you navigate the Icelandic rental market with ease.

How do you find a rental property in Iceland?

There are several ways to find rental properties in Iceland. Online platforms such as Leiga.is and Rent in Reykjavik are popular among locals and expats alike. You can also find listings in local newspapers or through real estate agencies. Word of mouth can also be effective, so don't hesitate to ask around.

Does Iceland have an MLS type system?

Iceland does not have a Multiple Listing Service (MLS) like in the United States. However, most real estate agencies have their own websites where they list available properties. These websites are usually in Icelandic, but can be translated into English using online tools.

Do brokers have licenses and how do I know if they are licensed?

Yes, real estate brokers in Iceland are required to have a license. You can verify a broker's license by checking with the Icelandic Chamber of Commerce. It's important to ensure that you're dealing with a licensed broker to avoid potential scams or legal issues.

Should I buy or rent in Iceland?

Whether to buy or rent depends on your personal circumstances and how long you plan to stay in Iceland. Renting is typically more flexible and requires less upfront investment, but buying can be a good long-term investment if you plan to stay for several years. Consult with a local real estate expert to make an informed decision.

Is it difficult to find rentals in Iceland?

Finding a rental in Iceland can be challenging, especially in popular areas like Reykjavik. The demand often exceeds the supply, leading to high rental prices. Start your search early and be prepared to act quickly when you find a suitable property.

What documents are required when renting an apartment in Iceland?

When renting an apartment in Iceland, you'll typically need to provide proof of income, a copy of your passport, and a reference from a previous landlord. Some landlords may also require a credit check. Make sure to have these documents ready to speed up the process.

Do I need a lawyer when renting an apartment in Iceland?

While it's not mandatory to have a lawyer when renting an apartment in Iceland, it can be beneficial, especially if you're unfamiliar with Icelandic rental laws. A lawyer can review the lease agreement and ensure your rights are protected. Legal fees can vary, but expect to pay around 1-2% of the annual rent.

How long is the typical lease for?

The typical lease in Iceland is for one year, but shorter or longer leases can be negotiated. Make sure to read the lease agreement carefully and understand the terms before signing.

Do I have to pay a deposit?

Yes, a security deposit is typically required when renting an apartment in Iceland. The amount can vary, but it's usually equivalent to one to three months' rent. This deposit is refundable at the end of the lease, provided there are no damages to the property.

What other upfront costs are there when renting?

In addition to the security deposit, you may also need to pay the first month's rent upfront. Some landlords may also charge a non-refundable application fee. Be sure to budget for these costs when planning your move.

Are utilities included?

Utilities are usually not included in the rent and need to be set up and paid for separately. The cost of utilities can vary depending on the size of the apartment and your usage, but they are generally not overly expensive.

Are furnished or unfurnished rentals more popular in Iceland?

Both furnished and unfurnished rentals are available in Iceland. Furnished apartments typically include basic furniture and kitchen appliances, while unfurnished apartments may only include a stove and refrigerator. Furnished apartments are often more expensive, but can be a convenient option if you're not planning to bring or buy your own furniture," said one expat living in Iceland.

Expats Talk about How they Found their Home

"One of the best ways to find a place to live in Iceland is to use online resources such as websites and social media. Websites such as Leigulistinn, Bylgjan, and Airbnb are great resources for finding apartments, houses, and other rental properties. Additionally, social media sites such as Facebook and Instagram can be used to search for rental properties and connect with potential landlords. Additionally, it is possible to find rental properties through local newspapers and real estate agents," commented an expat living in Iceland.