Claim made by the landlord against the tenant’s deposit.

The parties entered into a lease for an indefinite period on 1 May 2018. At the beginning of the rental period the tenant advanced a guarantee in the amount of ISK 1,050,000. The apartment was inspected at the beginning and the end of the rental period by the company Tryggja ehf. At the end of the rental period the landlord presented a claim against the guarantee in the amount of ISK 715,000 due to damage to the rented premises. The tenant rejected all his demands, but offered ISK 85,000 to bring the matter to an end.

The Complaints Committee noted that a tenant is expected to return rented premises in the same condition as he takes them over. Inspections had admittedly been carried out at the beginning and the end of the rental period, but nothing was available in writing regarding the condition of the property. Thus, the landlord was not able to base her claim on the outcome of an inspection, as no documentation was available. The committee therefore takes the view that no inspection was made in conformity with the first paragraph of Article 69 of the Rent Act. The committee rejected the landlord’s claim and pointed out that the tenant’s offer to end the matter by paying ISK 85,000 was made in order to reach an agreement, and not as a recognition of any compensatory liability on his part.

Conclusion: The landlord’s demand that she be permitted to drawn on the tenant’s deposit was rejected.