How do I end a tenancy and what is the notice period?
The period depends on the type of lease — six months for a flat on an indefinite lease — and since 2024 a landlord can no longer terminate without a reason. Under Art. 56 of the Tenancy Act no. 36/1994 the notice period for an indefinite lease is six months for a flat, three months for single rooms and one month for storage space — and it applies both ways. Notice must be in writing and served in a provable manner, and the period runs from the first day of the next month after it arrives. The myth many tenants fear: that a landlord can terminate with no notice or on a few weeks. That is wrong — and after the change on 1 September 2024 the landlord must state a valid reason from an exhaustive list in the law, and you can refer the termination to the rent tribunal. A fixed-term lease, by contrast, ends on the agreed day and generally cannot be ended earlier unless the contract allows it.
📋 The rules
- The notice period for an indefinite lease is six months for a flat, three months for single rooms and one month for storage space — both ways (Art. 56 of Act no. 36/1994).
- Notice must be in writing and served in a provable manner; the period runs from the first day of the next month after it reaches the other party.
- Since 1 September 2024 a landlord cannot terminate an indefinite lease without a reason — the reason must come from an exhaustive list in the law and be given formally.
- A fixed-term lease ends on the agreed day and generally cannot be ended earlier by notice unless the contract expressly allows it (then at least three months mutual notice).
- The tenant can refer the landlord termination to the rent tribunal; the landlord must also check whether the tenant intends to use their priority right to renew.
🔓 Exceptions
- A fixed-term lease can often be ended earlier if the contract itself allows it in specified circumstances — then a mutual notice of at least three months applies.
- Death of the tenant, divorce or a spouse moving can give a right to take over or end the lease with ordinary notice, even if it is fixed-term.
- Rescission is different from notice: on serious breach (e.g. unpaid rent or major damage) a lease can be ended without a notice period under the rules on rescission.
⚠️ Penalties & fines
Getting termination wrong can be costly. If notice is not in writing or not served in a provable way it does not count as valid, and the period does not begin to run — tenant or landlord then stays bound. If a landlord terminates without a valid reason after 1 September 2024, the rent tribunal can annul the termination, and the tenant keeps the flat. If a tenant tries to walk out of a fixed-term lease early without authority, they are left with rent for the rest of the term or until a new letting succeeds, plus any loss. The hidden cost is also the deposit and the inspection: if the tenant hands the property back in poor condition or without an inspection, it can eat up the deposit. In every case it pays to keep everything in writing, respect the notice period and close with a formal inspection — the cheapest route for both sides. Unpaid rent during the notice period accrues penalty interest and can end in collection.
📎 Official sources
- Althingi · Tenancy Act no. 36/1994 (Art. 56, consolidated) →
- HMS · Amended tenancy law (termination without reason banned) →
- Ísland.is · Renting residential housing →
❓ Frequently asked
What is the notice period for a flat on an indefinite lease?
The notice period is six months for a flat and applies both ways, under Art. 56 of the Tenancy Act. For single rooms it is three months and for storage space one month, and it runs from the first day of the next month after the notice arrives.
Can the landlord end my lease without giving a reason?
No, not any more on an indefinite lease. Since 1 September 2024 the landlord must state a valid reason from an exhaustive list in the law and give it formally, and you can refer the termination to the rent tribunal if you think it unlawful.
Can I end a fixed-term lease before the final day?
Generally not, because a fixed-term lease ends on the agreed day and cannot be ended earlier by notice unless the contract allows it. If it does, a mutual notice of at least three months applies, and otherwise you are left with the rent for the rest of the term unless a new letting succeeds.
How should I serve the notice?
Notice must be in writing and served in a provable manner, for example by registered letter or another way that can be proven. If it is not, it does not count as valid and the notice period does not begin to run, so it is important to secure proof of receipt.
What is the tenant priority right?
A tenant renting for a fixed term generally has a priority right to continue renting at the end of the term, and the landlord must now ask whether they intend to use it. The tenant replies within 30 days of the query, and if they use the right the tenancy continues on new terms.
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