How Much is Rent in Iceland? Ultimate Rental Price Guide

Published by Movingtoiceland Editor on

How much is rent in Iceland

How Much is Rent in Iceland? A Comprehensive Guide

Last updated: 15. November 2024

If you’re considering making Iceland your home, one of the most important tasks is to get a good understanding on the living costs, with rent being a top priority. The prices we provide in this guide are estimates for 2023-2024, aiming to give you a general sense of what you might spend on housing. Actual prices can differ based on the area, amenities, and many other factors. With this guide, we hope to offer a clearer picture of the rental landscape in Iceland, what to look for and what to avoid, which in turn should help you make well-informed decisions as you prepare for your move. So let’s try to answer now the question: How much is rent in Iceland?

Prices of rental apartments in Iceland

Reykjavik cityscape with ocean and mountains in the background
Reykjavik cityscape with ocean and mountains in the background
  1. The Capital Area (Reykjavik and surrounding towns). The Capital Area, where around 64% of Iceland’s population lives, unsurprisingly has the highest rent prices. Based on 2023-2024 data:
    • Studio or One-bedroom Apartment: On average, ISK 160,000 to 260,000 per month.
    • Two-bedroom Apartment: Rents are typically between ISK 200,000 to 280,000 per month.
    • Three-bedroom and Larger: Prices start from ISK 260,000 and can reach ISK 370,000 or more, depending on location and amenities.
View of the Eyjafjordur (Eyjafjรถrรฐur) fjord with the Capital of the North – Akureyri nestled in the lower right corner of the image.
  1. Larger Towns: For example Akureyri, Reykjanesbรฆr, Egilsstaรฐir, รsafjรถrรฐur, Selfoss, Akranes. Rents in these towns, while lower than in Reykjavik, are still on the higher side:
    • Studio or One-bedroom Apartment: ISK 130,000 to 210,000 per month.
    • Two-bedroom Apartment: ISK 190,000 to 270,000 per month.
    • Three-bedroom and Larger: ISK 250,000 to 350,000 per month.
Harbor view of the town of Stykkishรณlmur with colorful houses and mountains in the background.
  1. Rural Areas and Smaller Towns For those contemplating living outside the primary urban hubs, rents are more affordable. However, consider the availability of amenities and job opportunities:
    • Studio or One-bedroom Apartment: ISK 90,000 to 160,000 per month.
    • Two-bedroom Apartment: ISK 160,000 to 250,000 per month.
    • Three-bedroom and Larger: ISK 190,000 to 300,000 per month.
  1. Factors Influencing Rent Several elements determine the rent in Iceland:
    • Location: Being close to city center, schools, or major tourist attractions can drive up rent.
    • Amenities: Modern facilities, such as renovated kitchens or bathrooms, balconies, dedicated parking spaces or parking garages, proximity to public bus stops, etc. can come with a higher price tag.
    • Utilities: Consider if utilities such as heat, electricity and internet are included in the rental price or will be billed separately.
    • Size and Condition: The total area, number of rooms, and the state of the property are significant rent determinants.
    • Duration: Short-term agreements can sometimes be more expensive than long-term contracts.
  1. Additional Costs to Consider When planning for rent in Iceland, remember to factor in other expenses:
    • Utilities: Depending on the lease, utilities like electricity, water, and heating might be extra. Typically, utilities can add ISK 10,000 to 25,000 monthly.
    • Internet and TV: These services generally range from ISK 5,000 to 15,000 monthly.
    • Deposit: Most property owners ask for a deposit, usually equal to a month’s rent. This is returnable at the end of your lease if there’s no property damage. You can also check out Leiguskjรณl for deposit free renting.

Rental Payment and Deposits

In Iceland, rent is generally paid on a monthly basis, with payments due at the start of each month unless another arrangement is made with the landlord. Itโ€™s standard for landlords to require a security deposit, usually equivalent to one to three months rent, to cover potential damages or unpaid rent. Deposits are typically returned at the end of the tenancy if the apartment is left in good condition, though it’s wise to clarify the terms with the landlord beforehand.

Finding and Viewing Apartments

Apartments in Iceland are often advertised on local websites, social media groups, and through real estate agencies, with listings usually providing key details like monthly rent, deposit requirements, and whether utilities and furnishings are included. Rental agreements are generally formalized with a contract, which is essential to review carefully. Icelandic rental laws offer protections for both landlords and tenants, though they may differ from regulations in other countries, so it’s advisable to be well-informed before signing.

Sample Post for Finding an Apartment in Iceland

In Iceland it’s common to find rental apartments via Facebook Groups specific to rentals. When posting an advertisement looking for an apartment in a Facebook group, itโ€™s helpful to be clear, polite, and specific about your needs to attract the right responses. Hereโ€™s an example:

“Hello everyone! Iโ€™m looking for a one or two-bedroom apartment in Reykjavik, preferably close to public transport and amenities. My budget is around ISK 180,000 – 220,000 per month. I am a reliable, non-smoking tenant with a stable job and excellent references, looking for a long-term rental starting in [desired move-in date]. Ideally, Iโ€™d like a place that includes basic furnishings, but Iโ€™m flexible. If you have an available apartment or know of any listings that might fit, please send me a message. Thank you in advance!”

This example includes essential details like budget, preferred location, move-in date, and any specific preferences, making it easy for landlords or other group members to assess if they have a suitable rental to offer. Make sure to be honest and only list qualities that actually apply to you.

Beware of Rental Scams

When searching for rental properties in Iceland, itโ€™s essential to be cautious of fraudulent listings. Scammers often post fake adverts with attractive prices, fake photos and shady deposit requests. To protect yourself consider the following:

  • Never pay a deposit or rent upfront without viewing the property in person or verifying its legitimacy.
  • Be wary of landlords who refuse to meet in person or claim to be abroad. This is a common tactic used by scammers.
  • Avoid deals that seem too good to be true. Rental prices in Iceland reflect the current housing market and it’s very rare to find apartments that go below the market value.
  • Use trusted websites or work with reputable rental agencies when possible.

If you suspect a scam, report it to local authorities or the website hosting the listing. Stay vigilant and ensure your rental process is safe and secure.

In Conclusion

So, how much is rent in Iceland? We hope you now have a better understanding on this subject. While renting in Iceland can be on the pricier side, especially in the Capital Region (Reykavik and surroundings), a good understanding of the market can help you find a suitable place within your budget. Always read advertisements and lease agreements carefully and consider consulting locals or expatriate groups for insights to make the best choice. Click here to see our list of rental websites and social groups.


Movingtoiceland Editor

Movingtoiceland Editor

Contact by email info@movingtoiceland.com