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Guides · Iceland

Tenancy or lease renewal in Iceland

Written from published rules on 26 August 2026. Not monitored for changes since. A starting point, not official advice — confirm anything that matters with No single government authority directly handles the renewal of private tenancy agreements. These are civil contracts between parties. Disputes can be brought to Húsnæðis- og mannvirkjastofnun (HMS) - Housing and Construction Authority, or relevant courts..

Renewing a tenancy or lease agreement in Iceland typically involves either extending the current contract or drafting a new one, based on mutual agreement between the tenant and landlord. It's a contractual process rather than an official document renewal.

Your timing

It is advisable for both parties to discuss the renewal or new agreement several months before the current lease expires. This allows ample time for negotiation, for the tenant to find new accommodation if an agreement isn't reached, or for the landlord to find new tenants, avoiding potential gaps or last-minute stress.

Start 90 days ahead

This lead time provides a buffer for negotiations, to give notice according to the existing contract, and to allow for searching for alternative housing or tenants if a renewal is not agreed upon.

The process

  1. 1Review the terms of the current tenancy agreement, especially clauses related to termination, notice periods, and renewal options.
  2. 2Initiate discussions with the landlord or tenant regarding the desire to extend or renew the tenancy.
  3. 3Negotiate new terms, if any, such as rent adjustments, duration of the new period, or changes to responsibilities.
  4. 4Draft a new tenancy agreement or an addendum to the existing one, reflecting the agreed-upon terms.
  5. 5Both parties should carefully read and sign the new agreement or addendum.
  6. 6Ensure both parties retain a signed copy of the renewed agreement or addendum.

What to bring

  • The existing tenancy or lease agreement
  • Identification documents for both landlord and tenant (e.g., passports or ID cards)
  • Any new terms or conditions to be included in the updated agreement

Who handles it

No single government authority directly handles the renewal of private tenancy agreements. These are civil contracts between parties. Disputes can be brought to Húsnæðis- og mannvirkjastofnun (HMS) - Housing and Construction Authority, or relevant courts.

https://www.hms.is/husnaedi/leiguverd-og-samningar/leigusamningar/

There are generally no official government fees for renewing a private tenancy agreement. However, if using a real estate agency or legal services to draft or mediate the new contract, professional fees may apply. The new rental amount will be agreed upon by the parties.

What commonly goes wrong

  • Ensure all terms of the renewed agreement are clearly stated, including rent, duration, and any changes from the previous contract.
  • Be aware of the notice period stipulated in the current agreement for termination or non-renewal.
  • New agreements or extensions should be signed by all parties involved.
  • Changes to rental terms must comply with Icelandic housing laws, particularly regarding rent increases.

Sources

Other documents in Iceland

Tenancy or lease renewal in other countries

Often renewed together

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