Rescission by the tenant of a lease for a definite period. Legal costs. Agent.

The parties entered into a lease for a definite period as from 1 October 2020. On 2 October the tenant sent an sms message to the landlord stating that she was not satisfied with the premises. She said there had been a lot of noise from the upper floor of the building where the landlord ran an Air BNB apartment. The tenant made the same complaint on the following day, in addition to requesting the return of sums he had already paid. At the beginning of the lease period, the tenant paid ISK 160,000 in rent in addition to a deposit of ISK 480,000. The landlord says he responded immediately and had the tenants on the upper floor vacate that apartment. On 5 October the tenant informed the agent that she had found another apartment and had vacated the rented apartment, and requested the return of her deposit. The agent told her that she must return the keys at the very first opportunity because the landlord could “charge her for the days she had them.” In an sms message on 9 October, the agent confirmed to the tenant that a transfer would be made to her bank account shortly. The landlord repaid ISK 120,000, but retained the deposit. The landlord also objected that the rescission had been sent to his agent, and not to him personally.

The Complaints Committee considered, in the light of the communications between the parties, that the landlord had accepted the rescission, since his agent had asked for the keys and told the tenant that until they were returned she would be charged rent. The committee considered that the tenant had been within her rights in sending her complaint to the landlord’s agent, as they were acted upon. The committee considered that an agreement had been made between the parties that after the return of the keys, the tenant would not be charged further rent.

Conclusion: The landlord was obliged to return the deposit in its entirety and also to reimburse ISK 3,873 in respect of excessive rent payment.