Contract

Contract

1 – Scope

This agreement (the Tenancy Agreement) shall apply to the legal relationship between the parties (Landlord and Tenant) regarding the Tenant’s rental of the rental property.

The rental property is residential housing for students, in housing that is the property of the Landlord and intended for residence for students.

In other respects than specified in this agreement, the parties’ contractual relationship is governed by the Rent Act no. 36/1994 with subsequent amendments, the Allocation Rules of Student Housing in effect at any given time and the current House Rules for the housing in question at any given time, as well as other rules that the Landlord has issued or may issue for the premises in question. These rules are part of the Tenancy Agreement and serve to supplement it. The Tenant shall confirm that he/she has read these rules before signing the lease.

Deviations from the provisions of Act no. 36/1994, in the Tenancy Agreement, are based on Article 2, paragraph 3 and Article 3a of that Act.

2 – Tenancy period

This Tenancy Agreement is for a limited period: the tenancy period begins on xx.xx.xxxx and ends on xx.xx.xxxx.

The Tenancy Agreement is binding for both parties until the end of the tenancy period, which entails that the Tenant must pay the rent due for the whole tenancy period, and the Landlord must rent the Tenant the rental property for the same period, provided that no situation arises permitting the Landlord to revoke or terminate the Agreement. A tenant (except those who are renting at Gamli Garður) may, however, always terminate the Agreement by giving three months’ notice, commencing on the first day of the next calendar month. Terminations with longer notice periods are not considered valid.

Parties may agree to renew the tenancy agreement at the end of the tenancy period. A new agreement is then valid for the same period in the next academic year, unless the parties agree to a different tenancy period. The conditions under which a tenant is able to renew a tenancy agreement are that he/she fulfils the conditions of the Student Housing allocation rules, has paid the rent on time, is not in debt for other services provided by Félagsstofnun stúdenta – Icelandic Student Services, has not been guilty of non-compliance or breaches that may result in termination or revocation of the tenancy agreement, or has in other respects failed to fulfil his/her obligations in such a way or has behaved in such a way that it can be considered normal that the Landlord should be unwilling to continue the tenancy. The Landlord shall notify the Tenant with one month’s notice if he/she no longer fulfils the conditions for continued tenancy, stating the reasons for this. If the agreement is terminated by the Landlord, see also clause 12, the Tenant shall, after receiving notification thereof, vacate the rental property immediately.

For the renewal of the Rental Agreement, reference is made to the Allocation Rules on the Landlord’s website, www.studentagardar.is. If the Rental Agreement is renewed, all provisions of this Agreement shall apply[HAH1], unless otherwise agreed, with the exception of a changed tenancy period.

A request for an extension must be submitted by the Tenant at least three months before the end of the original tenancy period. The same applies each time the Tenant submits a request for renewal of the tenancy. At the end of the agreed tenancy period, the Tenant does not have a priority right to rent if he/she no longer meets the conditions of the Student Housing allocation rules; cf. Article 51, paragraph 2, item 12, of the Rent Act no. 36/1994.

3 – Rent

The rental charge is as follows:

Rent ISK xxx,xxx; heating ISK x,xxx; housing fund ISK x; residents’ fund ISK x; electricity ISK x,xxx.

The rent is linked to the consumer price index (points), (date) (xxx) (xx.xx.xxxx) for indexation according to Statistics Iceland’s calculations, and is the basis for calculating the rental charge. The rental charge therefore changes proportionally with monthly changes of the index. The monthly fee to the housing fund changes according to the Landlord’s decision. Energy prices change in accordance with changes in energy prices at the utility company that the Landlord does business with at any given time. Other costs may change according to decision of the Landlord. The Landlord reserves the right to increase the agreed rent beyond that of the consumer price index rise in September each year. There must however be justifiable reasons of which the Tenant shall be informed. Should this be necessary, the increase shall be announced with at least three months’ notice.

In addition to rent and a fee to the housing fund, the Tenant shall pay a special administrative fee, according to the Landlord’s tariff and currently ISK 4,000, for allocation of the housing. The administration fee is paid for both the first allocation and any subsequent extension of the Tenancy Agreement, and is collected with the first rental payment of each tenancy period.

The rental charge is invoiced electronically, and a demand appears in the Tenant’s online banking account and shall be paid there. If the Tenant wishes to have a paper demand slip sent, he/she shall bear the cost incurred. If the Tenant fails to pay the rental charge until after the final due date, the Landlord is permitted to demand the highest legally allowed penalty interest to be added from the due date until payment is made. The Tenant shall then be responsible for paying any other costs resulting from late payment.

4 – Security deposit

The Landlord may require the Tenant to provide a security deposit, deemed valid and satisfactory by the Landlord, as insurance for the Tenancy Agreement, including for rent payments and compensation for damage for which the Tenant is responsible, in accordance with the general rules and relevant legal provisions.

Security deposit required (  )                                             Security deposit not required (  )

Type of security deposit: ________________________

Amount of security deposit: ISK ____________________

5 – Operating expenses

Division of operating expenses for the rental property and maintenance costs other than those described below (cf. clause 8), is as provided in Chapter V of the Rent Act, no. 36/1994. The costs payable by the Tenant are collected with the rental charge.

The Tenant pays separately for hot water and electricity usage. The Landlord collects such payment with the rent and is responsible for paying the utility companies. The Landlord is permitted to use estimates from the utility companies as the basis for collection, but otherwise the Tenant’s payment for energy is collected in accordance with the utility companies’ bills at a given time. The Landlord is permitted to demand an extra charge if the Tenant uses appliances with very high energy consumption, e.g. a deep freezer, and to correct the collected energy costs in arrears in accordance with corrections from the utility companies. The Landlord can also collect other costs incurred because of the property, including those incurred if the fire alarm system is activated because of actions or inactions by the tenant.

The Tenant is responsible for cleaning and joint care of the communal areas, together with other tenants in the building, all in accordance with the provisions of the current house rules and the instructions of Student Housing’s Property Management team. Among other things, the Tenant is obliged to participate in the general cleaning of the premises and its plot. Should the Tenant neglect his/her duties as set out in this clause, the Landlord may, in addition to other measures, have the work carried out at the expense of the Tenant and collect the cost with the rent.

6 – Condition and handing over of the rental property

Other than as noted below, the provisions in Chapter III of the Rent Act, no. 36/1994 apply regarding the condition of the rental property at handover, see also Student Housing’s Allocation Rules and current house rules.

The rental property shall be handed over on the first day of the tenancy period, in accordance with clause 2, at which time the Tenant receives a key to the property. On handover, the Tenant is provided with an inspection sheet on which he/she can record comments on the condition of the rental property. The Tenant shall return the inspection sheet within 7 days of the property handover. The above-mentioned inspection sheet shall serve as grounds in the event of a dispute regarding the Tenant’s liability for damages when the property is handed back. If either party does not agree to this, he/she may, at his/her own expense, request an inspection under Chapter XIV of the Rent Act no. 36/1994. If the rental property is not in the condition specified in the Tenancy Agreement or as the Tenant might reasonably expect, the Tenant shall submit written comments within one week of the handover and state what improvements are required.

The Landlord may delay handover of the premises by up to 14 days, if that proves necessary in order to carry out repairs and improvements to the rental property to bring it into a rentable condition. The Tenant is not entitled to a discount on the rental fee if handover is delayed by five days or less.

7 – Maintenance

The Landlord shall normally keep the rental property in a rentable condition, in accordance with good housing maintenance practice. The Tenant is not entitled to discounts or compensation for loss of use resulting from maintenance work, unless the maintenance work leads to significantly reduced use or loss of use. The Landlord shall have all repair and maintenance work carried out quickly and efficiently and in such a way that there is as little disruption as possible. If necessary, the Tenant is obliged to vacate the premises during the repairs and the Tenant is not entitled to a discount on the rent if the loss of use lasts less than five days. The Tenant is not entitled to a discount or other form of compensation for disturbance resulting from maintenance work on other apartments in the premises, unless that maintenance work leads to a significant reduction in use or loss of use according to an inspector’s assessment; cf. Article 21 of the Rent Act no. 36/1994. In cases where the rental property is on a construction site, disturbance may be associated with construction, and the Tenant is not entitled to a discount or other form of compensation as a result.

In the event of major renovations to a building, the Landlord has the right to terminate the agreement with three months’ notice, if no agreement is reached with the Tenant about moving to another apartment while the work is carried out.

The Tenant shall immediately report any defects or other matters that require attention or repair and were not noticeable during the normal inspection and/or not included in the handover inspection. The same applies if a defect or need for repair, whether indoors or outdoors, occurs later in the rental period, both with respect to the rental property and its fixtures and fittings, and the premises where the rental property is located, as the Landlord has an obligation to report to its insurance company. If the Tenant neglects his/her obligation to notify in accordance with the above, his/her potential compensation claim lapses and he/she is then also liable for any damage that may result from his/her negligence or delay.

In other respects than those above, the maintenance of the rental property, including the rights and obligations of each party to the agreement regarding such maintenance, are subject to the provisions of Chapter IV of the Rent Act no. 36/1994.

8 – Use of the rental property, Landlord’s access etc.

The rental property is only intended to be occupied by the Tenant(s) as specified in this Tenancy Agreement, and the rental property is the Tenant(s)’s responsibility throughout the rental period. It is prohibited to use the rental property for a purpose other than as agreed in this Tenancy Agreement and as stated in the laws and rules that apply to the contractual relationship between the parties.

The Tenant is not permitted to make changes or improvements to the rental property or its fixtures and fittings. The Tenant is not permitted to fasten nails, screws, hooks and the like in or on walls, window frames, doors or doorframes of the property. It is not permitted to attach anything to the windows of the apartment, whether inside or outside – other than curtains/drapes. The Tenant is not permitted to change any lock on the rental property. If the Tenant contravenes this prohibition in any way, the Landlord may claim from him/her the cost of restoring the rental property or its fixtures and fittings to the original condition. If the Tenant deems that the furnishings of the rental property need repairing, he/she shall notify the Landlord in accordance with his/her obligations under clause 15 of this Agreement. The Tenant is permitted to access and use the communal area of the premises, while complying with the current house rules and other relevant general rules.

The Landlord has the right, after providing reasonable notice and in consultation with the Tenant, to access the rental property to have improvements made to the rental property and to monitor its condition and treatment. During the last six months of the rental period, whether the rental period of the original tenancy agreement or a renewed tenancy agreement, see clause 2 of this Agreement, the Landlord may show the rental property to prospective buyers or tenants, but not for more than two hours a day. Notice of such a visit shall be given at least 24 hours in advance and the Tenant or his/her representative shall also be present. The Landlord may also instruct potential tenants to contact the Tenant in order to view the rental property. The Tenant is obliged to ensure that this inspection can take place within two days of a request.

9 ­– Conduct

The Tenant(s) and his/her associates must show consideration for the other occupants of the premises in all behaviour and use of the rental property, and take care not to disturb the normal use, study environment and night-time quiet of other occupants of the premises, or cause them inconvenience or disturbance. The Tenant must abide by the current house rules for the premises, as well as other rules that the Landlord has issued or may issue, as such rules are part of the parties’ agreement, cf. clause 1. The Tenant is strictly prohibited from keeping pets, including dogs, cats, birds or rodents, for short or long periods, unless otherwise provided for by the house rules. Smoking and vaping are prohibited in the rental property, both in the apartment/room and in the communal areas of the premises. All use of illegal drugs is strictly prohibited, as well as other criminal conduct. Where there is parking in a basement carpark, it is prohibited to store inoperable or unregistered vehicles. The Tenant, together with other tenants, has the right to use the communal property of the premises and its communal fixtures and fittings, including laundry room, as provided for in the house rules. If the Tenant and his/her family intend being absent from the rental property for a longer period than 10 days, he/she shall notify the Landlord.

The Tenant must ensure that his/her household and guests respect the conduct rules, as well as other rules that should be followed. The Tenant shall compensate for damage to the rental property, or its fixtures and fittings, caused by the Tenant, family members, guests or other persons whom he/she has allowed to use or access the rental property.

10 – Subletting

Without written consent from the Landlord, the Tenant is completely prohibited from subletting the rental property or a part of it, or his/her right of tenancy, whether for payment or not. This includes allowing close family or relatives to reside in the rental property. The Tenant is prohibited from exchanging or agreeing to exchange rental properties with another tenant in Student Housing without consent from the Landlord. If the Tenant wishes to transfer within Student Housing he/she shall apply for transfer in accordance with the Student Housing Allocation Rules online at www.studentagardur.is. If a transfer between properties takes place, the Tenant shall pay a special transfer fee, based on the Landlord’s tariff.

11 – Termination

Tenancy agreements at Gamli Garður have no provisions for termination and are valid until the end of the tenancy period.

If the Tenant no longer fulfils the conditions of the Student Housing allocation rules, or otherwise fails to fulfil his/her obligations under this Agreement, the Landlord may revoke the agreement. The Tenant must then vacate the rental property. In the event of, in the Landlord’s opinion, a minor breach in relation to this Agreement or the provisions of the allocation rules, the Tenant shall be urged to remedy the situation before the revocation is implemented.

The Tenant can terminate the tenancy agreement with three months’ notice. Termination shall be notified in writing, sent to the Landlord with three months’ notice. Terminations with longer notice periods are not considered valid.

With the exception of Gamli Garður properties, a Tenant in a Student Housing property is permitted to terminate the tenancy agreement and vacate the rental property before the tenancy period expires. Such termination shall take place on the form for that purpose, by logging into My Pages at www.studentagardar.is, with at least three months’ notice.

12 – Revocation

In the following circumstances, the Landlord is permitted to revoke a tenancy agreement by sending written notice with a reasoned statement before the tenancy period expires, and the Tenant must then vacate the rental property immediately on the Landlord’s demand, after such a notice is sent:

  1. A tenant does not pay the agreed rental fee, housing fund fee or other fees under this Agreement on the correct due date, and does not respond within seven days to a written call for payment, provided that such a call has been sent after the due date and the Landlord has stated there that it will exercise the Landlord’s right to revoke.
  2. A tenant no longer fulfils the conditions of Student Housing allocation rules.
  3. A tenant repeatedly or grossly violates the house rules that apply to the rental property and the associated premises at any given time.
  4. A tenant uses the premises in a manner other than required by law or the rental agreement, and does not cease the misuse despite a written reprimand from the Landlord.
  5. A tenant transfers his/her tenancy right, in violation of the provisions of law or this tenancy agreement, or abuses his/her permission to sublet.
  6. A tenant denies the landlord or others access to the rental property without a valid reason.
  7. A tenant moves out of the rental property before the end of the rental period without having taken the necessary measures for its care or protection.
  8. The rental property is damaged in the care of the Tenant, due to misconduct or negligence on his/her part or those for whom he/she is responsible, and he/she does not respond immediately to demands for rectification.
  9. A tenant ceases his/her studies during the rental period.
  10. A tenant, despite the landlord’s reprimand, neglects his/her obligations to ensure that the rental property remains in good order, or is guilty of personal offence to the Landlord or other tenants or guests in the premises.
  11. A tenant, his/her guests or others for whom he/she is responsible, are guilty of consumption, custody, sale, purchase or any other handling of illegal drugs in the rental property or common area of the premises or its plot.
  12. A tenant otherwise neglects his/her obligations under law or this tenancy agreement to such an extent that his/her eviction from the premises is considered normal or necessary.
  13. If it is revealed that he/she has given incorrect information about his/her personal situation, which was of significance in allocation of the rental property to him/her.

13 – Changed circumstances

This tenancy agreement becomes invalid if the rental property is destroyed by fire or for any other reason, whether it occurs before or after the Tenant has been handed the rental property. In such cases, the Tenant is not entitled to any compensation from the Landlord unless the destruction is the fault of the Landlord, or the Landlord neglects to notify the Tenant of it.

A tenant who is not also a University of Iceland student does not have the right to take over the tenancy agreement or continue the tenancy agreement in the event of the death of the Tenant or the end of their marriage/cohabitation. The tenant in such a case shall then vacate the rental property as soon as circumstances permit, but never later than three months from the death or the end of the marriage/cohabitation. The provisions of clause 45, paragraph 1 and clause 46, paragraph 1 of the Rent Act no. 36/1994 do not therefore apply to this tenancy agreement.

14 – End of the tenancy period

This tenancy agreement ends on the agreed day, cf. clause 2, without special termination or notice on behalf of the parties, and the Tenant shall return the rental property on that day before 10:00 a.m. If the tenancy agreement has been renewed in accordance with the provisions of clause 2, the tenancy agreement ends on the day that the new tenancy period ends. If the Tenant does not return the rental property on time, the Landlord may demand compensation equivalent to half the monthly rent if the delay lasts for a week or less. If return of the property is delayed longer, the Tenant undertakes to pay the Landlord compensation equivalent to three times the rent for each day that the return is delayed, in addition to any costs that the Landlord may incur as a result.

15 – Condition and return of the rental property at the end of the tenancy

At the end of the tenancy period, cf. provisions under clauses 2 and 14, the Tenant shall return the rental property to the Landlord, with associated fixtures and fittings, in the same condition as he/she received it. The Tenant is fully liable for any deterioration of the rental property or damage to it, to the extent that this is not considered the normal result of ordinary or agreed use by the Tenant or is due to events that were demonstrably not connected to the Tenant. The Tenant shall be fully liable if his/her treatment of the walls or ceilings in the rental property has been such that it is necessary to repaint the walls or ceilings, in part or in full.

After the keys to the rental property have been returned, the Landlord carries out an inspection of the premises, and has for comparison the handover inspection sheet filled in by the Tenant when he/she moved in. If cleaning is not satisfactory, the apartment will be cleaned by a cleaning company, which the Tenant pays for in accordance with the costs incurred.

If the parties do not agree about the condition of the rental property, including cleaning, damage to it or loss, another Student Housing representative may be called in to decide, if the parties agree to this. In the event of a dispute regarding loss or the amount of compensation, an assessor may be called upon, in accordance with Chapter XIV of the Rent Act no. 36/ 1994, to assess the loss financially or obtain approval for costs if repairs have already been carried out. The party to the Rental Agreement who requests such an assessment shall bear all costs.

The handover inspection sheet shall serve as grounds in the event of a dispute regarding damage or liability of the Tenant when the rental property is returned. The Landlord shall direct a claim for compensation to the Tenant within two months of the return of the rental property. The Tenant must notify the Landlord of his/her new address before he/she leaves, and notifications in accordance with this clause shall be directed there. Otherwise, the start of the Landlord’s notice period, pursuant to the above, shall be moved forwards until such time as the Landlord gains knowledge of the Tenant’s new address.

16 – Miscellaneous provisions

The Tenant must participate in a housing association if it is operated in the premises in question. All residents of the premises must comply with house rules, and such house rules are considered part of this Agreement, cf. clause 1.

The Landlord is not responsible for moisture damage (damp) or any defects, seen or unseen, including to furniture, furnishings, clothing and shoes of the Tenant. The Tenant is responsible for them, should he/she choose to move in. The Tenant is advised of his/her options, and to terminate the tenancy agreement if he/she or his/her family becomes ill as a result.

In the event of subletting by the Tenant, which is always subject to the consent of the Landlord, the provisions of this agreement on the legal relationship between the subletting tenant and the Landlord apply.

The Property Management team acts as a liaison between the Tenant and the Landlord, and monitors both the condition of the rental property and the condition of fixtures and fittings in the premises. Property Management receives the Tenant’s requests for maintenance and improvements, and also handles their implementation. Property Management is also the Landlord’s representative at handover and return of the rental property, and also receives complaints about breaches of house rules, and seeks to resolve such issues.

When there is more than one tenant, they are jointly and severally liable for all obligations of the Tenant towards the Landlord, in accordance with this Agreement, including payment of rent.

Tenants shall familiarise themselves with the fire alarm system in their building, and follow all instructions regarding the fire alarm system in all respects. Instructions can be found in all apartments and rooms. If residents interfere with a sensor so that it affects the fire alarm in Student Housing premises, the repair cost, and the call-out cost where appropriate, will be borne by the resident in question. System management and repair is in the hands of security services only, and the cost depends on the tariff of the company in question at any given time. Residents are not allowed to repair the system to avoid/limit costs if the system has been tampered with in a way contrary to the instructions.

If an alarm system is activated for events that can be traced to the Tenant, whether due to action or omission, he/she shall pay all costs for this, including but not limited to a security company’s call-out fee.

If the parties to this rental agreement disagree as to its negotiation or execution, they may apply to the Housing Complaints Committee in accordance with Article 85 of the Rent Act no. 36/ 1994 and request the Committee’s opinion on the disputed matter. Authorisation to seek the opinion of the Housing Complaints Committee does not prejudice the right of a party to take a dispute to court. A court case concerning this agreement shall be conducted before the Reykjavík District Court.

This agreement is made in two identical copies, and each party keeps their own copy.

By signing, the Tenant confirms that he/she has read the provisions of this Agreement, which he/she approves in full, the Rent Act no. 36/1994, the Student Housing Allocation Rules and the house rules that apply to the rental property, cf. clause 1. The Tenant grants the Landlord permission to verify the information provided by the Tenant, and agrees that the information provided by the Tenant and the information generated through communication and during residence in Student Housing, is the property of the Landlord.

In confirmation of this Tenancy Agreement, the Landlord’s representative and the Tenant sign this agreement electronically.