Reykjavík Grapevine - 05.01.2018, Síða 12

The Wave Crests:
Renting In
Reykjavík
Recent data and renter testimonials
illustrate the sad state of the market
That the rental market in Reykjavík
is experiencing a crunch is no se-
cret. While working class Icelanders
struggle to find a place to live, many
properties that could be rented out
to locals are instead listed on Airbnb
for visitors. In fact, most long-term
Airbnb listings in Reykjavík are not
legally registered with city. The Hous-
ing and Financing Fund estimates
that some 1,400 Airbnb apartments
in Reykjavík, which are being rented
to tourists beyond the 90-day limit,
are not registered as businesses as
required, result-
ing in a loss of
revenue upwards
of 1 billion ISK.
E v en w h en l e -
gally registered,
Airbnb listings
comprise nearly
44% of the rental
m a r k e t , w h i c h
has begun to have
a serious impact
on available hous-
i n g for l o c a l s .
As a result, not
only is Reykjavík
losing upwards of
1 billion ISK per
year in revenue,
but those people
seeking a place
to rent are grow-
ing increasingly
desperate, and angry. Taking a look at
any of a number of Facebook groups
devoted to people seeking or offering
rental properties reveals that the tide
is turning. Where at one time a room
without access to a shower or kitch-
en going for 180,000 ISK per month
would spark a deluge of excited “sent
you a PM!” responses, increasingly
people are responding with incre-
dulity and outrage. In some cases,
would-be landlords have responded
by deleting these posts, or lowering
the rents on them.
We reached out to a number of
people currently looking to rent or
who are already renting. Many were
reluctant to go on the record for fear
of hurting their chances of finding a
place to live. These three brave ten-
ants, however, made the decision to
tell their side of the story. Here’s what
we asked them:
1. How long have you been on the rental
market; i.e., how long have you been
searching and/or living in a rental
property?
2. What would you say are the biggest
problems in the market right now?
What do you think contributes to
these problems?
3. What's one of the most frustrating
problems you've run into personally?
4. Do you think landlords are becoming
more greedy? And is the tide turning
against them?
5. What, in your estimation, needs to
be done to correct the situation?
Susana Pinto:
1. I've been on the rental market since
September and am already looking
for another place to live.
2. High prices together with strict
rules for the tenant. Probably greedi-
ness. We are at a point where some
people ask for up to 5,000 ISK per
square meter, which is absurd if you
compare it to what people get paid.
3. Dishonest landlords at the mo-
ment, running an illegal place and
not returning security deposits, just
to point out the worst things among
others.
4. I do, and it will be a downfall soon-
er or later.
5. Being less greedy will help.
Families are cooperating
with them and their country
for all of us to have a better
life, but end up overwhelmed
with absurd amounts being
asked for a place to live in.
Greta Macionytė
1. I have been on the rental
market for over a year.
2. I guess in general the
biggest issue is shortage of
apartments for rent. Be-
cause of that the prices are
insanely high and landlords
are getting "creative"; rent-
ing out storage spaces, ga-
rages and other locations.
Of course I've seen many
examples where something
like a garage have been turned into
cozy little studio, but that's not al-
ways the case. Also, there are places
where renters also have to "compete"
against tourists and landlords who
have turned their apartments into
small a bed & breakfast and renting
through AirBnB.
3. Compared to some, I consider my-
self very lucky. The first place I rented
out from my friends and once they
left the country I took over the lease
under my name. And with my cur-
rent place, I got insanely lucky. It was
the only place we saw and we got it.
I guess the most frustrating thing is
you can't really be picky. If you want
to find a place you kind of have to
lower your expectations. If you have
some deadline, like if your current
lease is about to expire, then you just
grab the first apartment that called
back when you applied. In a weird way
it's not you choosing the apartment,
but the apartment choosing you.
4. I guess every market has those
people who will try to take advantage
of whatever situation and the rental
market is no exception. As I men-
tioned, there are very creative options
out there, like the infamous toilet-in-
shower places. In other countries you
won't find ads with notes like "700$/
month, no access to toilet/shower,"
but here these things do not surprise
that much. Usually people accept a
situation like that out of desperation
just to have some kind of roof over
their head. Unfortunately, when plac-
es like that gets rented for 60,000-
100,000 ISK, then all decent apart-
ments cost even more.
5. I'm not really sure what could help.
With all the new apartments that
are being built in the Reykjavik area,
hopefully in the future there will be
more apartments up for rent. I had
a conversation today about whether
the government can help deal with
Airbnb by passing laws—maybe a lit-
tle. After all, we live in the age of the
Internet, where you can still be part
of a sharing economy via Facebook
groups and other outlets.
Gabe Dunsmith:
1. I have been searching for a prop-
erty in Reykjavík for approximately
one month. (I am currently living in
the U.S. and will be traveling to Ice-
land in January.) Previously, I lived
in Reykjavík for three months in the
spring of 2017.
2. The rental market is oversatu-
rated because of Iceland’s full-throt-
tle approach to tourism. Simply put,
when tourists clog up apartments in
downtown Reykjavík, it pushes up
prices for the rest of us. Rental costs
have ballooned to the point that many
young Icelanders cannot afford to
rent their own apartment, families
are being pushed out of the city cent-
er, and foreign workers and students
struggle to find even the most basic
of living arrangements.
A combination of unchecked tour-
ism, the proliferation of Airbnb prop-
erties, and government policies that
promote landlordism over
affordable living are at the
crux of the matter. Since
2008, Icelandic politicians
have elevated tourism to
something like a god—in-
fallible, curative and un-
assailable. Sure, tourism
has worked wonders for
the economy. But it isn’t a
miracle drug. It comes with
its own set of pitfalls that
must be tackled assiduous-
ly and cogently if Iceland
is to reverse the slow exo-
dus of downtown residents
from its capital and only
large city. What’s lacking
is the political will to make
hard changes.
3. In early December, after
a week of combing housing listings, I
finally found a place within my price
range—only to discover it had no
shower or kitchen. I realized that pro-
spective renters are being asked to
pay more and more for less and less.
4. I’m not convinced that landlords
are becoming greedier—they’re sim-
ply taking advantage of the current
political moment. When demand
rises without adequate supply, costs
skyrocket. So I can’t necessarily fault
the landlords for raising prices. What
does strike me as woefully egregious
is the larger system at play—one that
funnels money into the pockets of a
handful of individuals while encum-
bering residents who are simply try-
ing to put a roof over their heads.
5. The attitude surrounding tourism
must change. Pushing a glob of tour-
ists several times the size of Iceland’s
population through the country each
year is simply unsustainable—envi-
ronmentally, economically, socially,
spiritually. A few things that might
help: a limit on the total number
of Airbnbs, a ceiling on rent prices,
housing assistance for individuals
and families, and a curb on the num-
ber of tourists entering the country.
Words:
Paul Fontaine
Photo:
Art Bicnick
LIFE
So many high rises: how can be so hard to find a stable place to rent?
“Since 2008,
Icelandic
politicians
have elevated
tourism to
something
like a god—
infallible,
curative and
unassailable.”
12 The Reykjavík Grapevine
Issue 01 — 2018First
Gabe Dunsmith
Greta Macionytė