Rental market under pressure

The Rental Committee administered 39 cases last year, 20 of which were complaints.

Last year’s cases required significantly more work than in previous years. According to the committee, disputes between landlords and tenants in 2017 were generally more intense and prolonged than before.

Most of the complaints were centred on termination, rent hikes and deposit disputes.

Andras Holm Arge, chairman of the Rental Committee, writes in the annual report that investment in suitable administration of rental matters is crucial.

The committee is pleased to see that from 1 August, municipalities will be authorised to make their own lists of approved rental properties. However, the committee’s proposal to make these lists mandatory was voted down.

The rental Act requires landlords to use standard rental contracts and provide occupancy reports, but this requirement is often overlooked, and that causes problems.

The 20 complaints from last year show that occupancy reports are rarely submitted. This makes it difficult to determine the condition of the property at the time of moving in.

From 1 August, rental contracts and occupancy reports will be included in the same document.

The committee’s decisions on last year’s complaints show that a planned sale of a rental property is not a valid reason for termination of a rental agreement.

According to the annual report, landlords tend to use creative ways of getting rid of tenants who refuse to move out, including turning off the heating and removing the front door of the property.

Translated by prosa.fo