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Frequent asked questions

What rules apply to deposits paid by by the tenant to the landlord?

If a tenant has paid a deposit to the landlord at the beginning of the lease period, the landlord must reimburse it at the expiry of the lease. He must not dispose of the money or make decuctions from it without the tenants' approval or if a court ruling has been delivered establishing compensatory liability on the part of the tenant, for example due to damage to the rented premises.

 He may however use the deposit as payment of rent that is in arrears (if the tenant is behind on his rent payments). If the landlord intends to lay a claim to the deposit he must do so as soon as possible and no later than two months since the lease expired.

If the tenant and landlord do not agree on the amount of compensation for damage to the premises, the damage must be evaluated by a building officer. Building officers work for the municipalities and may be reached at each municipality office. However, both parties may demand that the assessment done by the building officer be referred to court-appointed assessors within two months from its completion.

Any unsettled dispute may be referred to the Rent Complaint Committee, which is housed at the Ministry of Social Affairs. Also, claims on reimbursement of deposits or compensatory liability on the part of the tenant may be referred to the courts. 

 

Forsíða English FAQ Húsnæðismál - english What rules apply to deposits paid by by the tenant to the landlord?