📈 Can the landlord raise the rent in the middle of the lease?

With conditions

Quick answer

Not at will — the rent is locked for the first 12 months of a fixed-term lease, index-linking of shorter leases is banned, and any increase must be registered. After the amendment to the Tenancy Act no. 36/1994 (Acts no. 106/2024 and no. 72/2025) you may not agree that the rent changes in the first 12 months of a fixed-term lease, and index-linking is not allowed in leases of 12 months or shorter — it is only permitted in leases of 13 months or longer and in indefinite leases. The myth is that the landlord (or a new owner) can raise the rent whenever they like. That is wrong: after 12 months a party may request a correction to market rent, or a company landlord may cite rising operating costs, but then a three-month notice applies and you have 30 days to accept, refer it to the tribunal or terminate. And an unregistered increase does not take effect — you may refuse it.

📋 The rules

In a fixed-term lease the rent cannot change in the first 12 months of the term (Art. 37 of Tenancy Act no. 36/1994).
Index-linking is not allowed in a fixed-term lease of 12 months or shorter; it is only permitted in a lease of 13 months or longer and in an indefinite lease.
After 12 months a party may request a correction of the rent to the market rent of comparable housing, or a company landlord may cite rising operating costs.
An increase by a company landlord requires at least three months notice, and the tenant has 30 days to accept, refer it to the rent tribunal or terminate.
A change of rent must be registered in the HMS rent register within 30 days; an unregistered increase does not take effect against the tenant and can be refused.

🔓 Exceptions

Flats of non-profit rental bodies (e.g. student housing and halfway houses) may be exempt from the ban on index-linking of shorter leases.
Non-profit rental bodies may raise rent to equalise the rent across comparable flats they own.
If no agreement is reached on a correction of the rent, the dispute can be referred to the rent tribunal, which decides the amount.

⚠️ Penalties & fines

If a landlord tries to raise the rent beyond what the law allows or without the proper procedure, it can cost them the increase. An unregistered increase simply does not take effect: if it was not registered in the housing rent register within 30 days the tenant may refuse to pay the part of the rent that represents the increase until the registration is put right. A landlord who neglects the registration duty can face administrative fines from ISK 10,000 to ISK 1,000,000 per breach. If a landlord seeks a correction without respecting the three-month notice and the tenant 30-day right of reply, the increase stands weak before the rent tribunal, which can strike it down or reduce it. The hidden cost for the tenant is to accept in silence an increase they could have challenged — which is why it matters to know the deadlines and to demand registration. All documents and notices should be in writing.

📎 Official sources

Last verified: 2026-07-12

❓ Frequently asked

Can the landlord raise the rent whenever they want?

No, in a fixed-term lease the rent cannot change in the first 12 months, and after that only if the conditions in the law are met. An increase requires proper procedure with notice and registration, so the landlord cannot raise the rent unilaterally whenever they please.

Can the rent be index-linked?

Index-linking is not allowed in a fixed-term lease of 12 months or shorter. It is only permitted in leases of 13 months or longer and in indefinite leases, although some flats of non-profit bodies may be exempt from the rule.

What must a landlord do to raise the rent lawfully?

After 12 months they may request a correction to market rent or, if they are a company, cite rising operating costs, with at least three months notice. The tenant then has 30 days to accept, refer the matter to the rent tribunal or terminate the lease.

Does a rent increase have to be registered anywhere?

Yes, a change of rent must be registered in the HMS rent register within 30 days of taking effect. The registration is a precondition for the increase to bind you, and if it is unregistered you may refuse to pay the increase until it is put right.

Can a new owner of the flat raise the rent?

No, a change of ownership does not alter the lease and the new owner takes over the rights and duties of the previous landlord unchanged. They are bound by the same rules on the 12-month lock, notice and registration, so they cannot raise the rent unilaterally on purchase.

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