Welcome to the website of Félagsbústaðir hf.

Félagsbústaðir hf. (Reykjavik Social Housing) is a public limited company, owned by the city of Reykjavik, which owns, runs and maintains rented social appartments for individuals and families undar a specific income and property maximum.

The company’s aim is to operate for the benefit of public interest and shall the operation be sustainable.


  • To own and maintain social housing in Reykjavik
  • To be a service company in the housing market
  • With the founding of a plc. to own and maintain social apartment buildings the operation is separated from the city of Reykjavik and the cost, performance and responsibility is more visible than before.
    The City’s role changes from being a direct transactor to monitoring the quality of the service and giving necessary restrictions to the operations and financial situation of the operating transactor.


  • To change the operations of social housing in the city so it resembles comparable operations in Western Europe.
  • To employ professional methods with the purpose of keeping rental price at a minimum and improving tenant service to increase supply of social housing to meet the housing demands of those who can’t redeem debt service payments on loans for purchasing apartments and are unable to find rental housing at affordable prices.
  • Félagsbústaðir hf. shall operate for the benefit of public interest. The operation of Félagsbústaðir hf. shall be fully sustainable and non profitable.

Organization Chart


  • Haraldur Flosi Tryggvason, chairman of the board
  • Kjartan Magnússon, board member
  • Guðrún Ögmundsdóttir, secretary
  • General director Auðun Freyr Ingvarsson

About us

In December 1996 the Reykjavík City Council approved the founding of a plc. which would have ownership of Reykjavík City’s rented social housing and handle its operations on behalf of the City. The decision was made in continuation of a report prepared by Þórarinn Magnússon, engineer, for the City at the request of the mayor about the operating form of rented social housing in the city. A task force, which previously had been working on the sale of city property, was assigned the task of preparing the foundation of the company.

Félagsbústaðir hf. was founded on the 8th of April in 1997 and was based on the experience of Scandinavian models of comparable operations. The company is almost entirely owned by the City Municipal Fund but Félagsþjónustan (Reykjavík Social Services) is registered with a small share. Three members sit on the company’s board of directors and its present chairman is Þröstur Ólafsson. Operations began on the 16th of June that same year with the purchase of a 827 apartments from Reykjavik City at the market value of that time. From the beginning of the year 1998 Félagsbústaðir hf. administered all operations and management of standard rented social apartments for Reykjavik City in addition to related projects previously done by the City Engineers Planning and Building Department, Reykjavik Social Services and other departments within City Hall. Additionally from that time on the Social Services Housing Department was shut down.

The main purpose of the foundation of the company was to separate the operations of Reykjavík City’s rented social apartments from other city operations and improving the financial and professional management of the operation. Furthermore the idea was to create a dynamic service company in the housing market with a specialized know-how in real estate management and at the same time making cost, results and responsibility more visible than before. The City’s role changed from being a direct transactor to monitoring the quality of the service and giving necessary restrictions to the operations and financial situation of the operating transactor.

At the end of the year 2015 Félagsbústaðir hf. owned 2.326 apartments, totalling approx. 170 thousand square metres. The average size of apartments was 75 m². Nearly all of the apartments are situated in apartment buildings, but some are in row houses and a few in detached houses. Almost half of the apartments have two rooms and just over a quarter of them have three rooms.

From the year 1999 the number of apartments owned by Félagsbústaðir hf. has increased by 100 apartments or more per year with purchases on the real estate market and constructing new buildings, but in addition to that the company has bought 57 service apartments for the elderly and 101 social lease purchase apartments from Reykjavík City. In the year 2003 there were 150 apartments purchased in co-ordination with accelerated transactions by Reykjavík City due to poor employment rate, bringing the total number up to 1.539 apartments at the end of that year. Further purchases are also planned of a 100 apartments in 2004 and 75 in the years 2005 and 2006. Reykjavík City contributes 10% of apartment start-up costs in the form of yearly capital stock increase, which apart from that is financed by housing loans from Íbúðarlánasjóður (Housing Financing Fund).

The Social Services in Reykjavík handle the allocation of the apartments, which are leased to low income individuals and families that meet the required conditions for leasing rights in co-ordination with regulations on social housing and can’t redeem debt service payments on loans for purchasing apartments and are unable to find rental housing at affordable prices.

So far the company has developed according to the original plans. In the beginning there were some doubts about the benefit of this structure for the City’s housing operations, but in time a general consensus about the company has been reached.

The company’s aim is to operate for the benefit of public interest and shall the operation be sustainable. The actual cost of operating the apartments is subsidized by one third by the city municipal fund and that financial aid is directed to the tenants trough The Social Services.

From the beginning the company has greatly emphasized on apartment maintenance and the outlook of its houses, land properties and building communal areas. With improved outlook and condition of the properties resident orderliness has gotten increasingly better. Rent payments percentage has also greatly improved since the company overtook the operations of rental apartments from Reykjavík City. Arrears have decreased and rent payments have gone from being approximately 75% of the rental income up to 98%.

Félagsbústaðir hf. is a member of the organization Þak yfir höfuðið (Roof over your head), an umbrella organization for parties in social housing operations. The organizations activities are limited and Félagsbústaðir hf. is the leading member in that co-operation. The company is also a member of the Nordic organization NBO (Nordisk Kooperativa och Allmännyttiga Bostadsföretags Organisation). Approximately 2,5 million apartments are operated by the Nordic companies associated with that organization.

Félagsbústaðir hf. is the single largest entity in housing operations in Iceland. Other major parties in similar operations are for instance Búseti, Félagsstofnun stúdenta (Icelandic Student Service) and Öryrkjabandalag Íslands (The Organization of Disabled in Iceland). Recently new companies have been founded to handle real estate and housing operations for local councils in Akureyri, Reykjanesbæ and Ísafjarðarbæ using the same company module as Félagsbústaðir hf.

The operations of Félagsbústaðir hf. is managed by three departments: Financial Department, Customer Service Department and Technical & Maintenance Department. The company’s offices are located at Hallveigarstígur 1 in Reykjavík and additionally there is a work shop and supply facility at Súðavogur 42. Today there are 22 employees working for the company including the general director, 7 employees in the Financial Department, 3 employees in the Customer Service Department and 11 employees in the Technical & Maintenance Department.

Real Estates ( Gallery )


Personnel Policy
Félagsbústaðir hf. objective is to always employ qualified staff which works together as one unit and is enthusiastic and customer friendly
Félagsbústaðir hf. pledges to make an effort in welcoming new recruits and giving them necessary education to perform to the best of their abilities.
Félagsbústaðir hf. encourages its staff to show initiative and gives it authority/ proxy for independent activity.
Félagsbústaðir hf. will offer quality working conditions.
Félagsbústaðir hf. emphasize that their staffs work will be characterized by professionalism and honesty and that the staff shows its customers and co-workers friendliness, respect and confidentiality.
Félagsbústaðir hf. will offer a solid and secure working environment where interesting subjects are challenged
Félagsbústaðir hf. emphasize on having a good working moral and a lively social life
Félagsbústaðir hf. will create a environment grow and evolve in their work.
Félagsbústaðir hf. will encourage its staff to increase its knowledge and maturity
Félagsbústaðir hf. will support their staff for regular physical training
Workload shall be within reasonable limits and Félagsbústaðir hf. shall encourage its staff to fulfil its responsibilities to their family life
At Félagsbústaðir hf. staff meetings are held monthly, and apart from the meetings the access to the management shall be very good.
The gender ratio is even and shall always be as equal as possible
Félagsbústaðir hf. is and shall be a non-smoking workplace

Customer Service Department

Relations with Velferðarsvið (Social Services) regarding apartment allocations
Preparing lease contracts and handling the company’s lessor obligations
Supervision over enforcement of house rules and house rental laws
Planning and supervising apartment purchases
General services and assistance to the tenants of Félagsbústaðir hf.
Mediator with Félagsþjónustan and others parties about tenant issues
Relations with real estate associates and co-owner in regard to house rules infringements
Registration and announcement of tenant modifications
Consulting hours for the Customer Service Department are all weekdays at 8:30-10:00. Tel. 520-1500
Contact the Customer Service Department

Financial Department

Lease payment calculation and collection
Relations with Intrum Justitia and Lögheimtuna (Receivables Management Service)
Financial Relations with Félagsþjónustan (Social Services)
Payment of invoices, bonds, house funds and all financial (umsýsla) handling
Accounting, reconciliation, VAT payments and salary accounting
Relations with the police commissioner, commercial bank and Íbúðarlánasjóður (Housing Financing Fund)
Filing apartment purchase documents
Apartment redemptions due to Reykjavík Housing Committee redemption requirements
Telephone switchboard, information service, mail supervision and daily services
Computer and multimedia supervision
Daily office operations
Consulting hours for the collection supervisor are all weekdays at 11:00-12:00. Tel. 520-1560.
Contact the Financial department

Technival and Maintenance Department

Real estate maintenance
land properties
parking spaces
Real estate and property reconstruction
Building constructions
Technical advise and information
Apartment inspection and assessment Apartment (delivery)
Cleaning Energy conservation operations
Safety issues
Fire prevention
Water damage
Security cameras
Environmental issues
Foreign relations
Research and development
Cost research
Co-operation with Nýsköpunarmiðstöð – Mannvirkjasvið (Innovation Center Iceland)
Nordic projects
Invoice review and verification
Consulting hours for the Maintenance Service are all weekdays at 13:00-15:00. Tel. 520-1550
Contact the Technical & Maintenance Department

House rules for Félagsbústaðir hf. apartment blocks

  1. Residents are required to be tidy and quiet when moving around in the communal areas of the building and premises. Residents should always keep in mind that they should cause other residents as least disturbance as possible. All activities and communication of residents that could cause discomfort are a breach of the house rules. From midnight till 7.a.m. there must not be any noise that could disturb the sleep of other residents.
  2. Front doors shall usually be locked, likewise all doors to communal spaces.
  1. All noise in buildings with a common staircase shall be avoided, and children must not use a communal area as a play area.
  1. The storage of personal items, bicycles, prams, pushchairs, shoes or other items that could cause constriction, dirtiness or disfigurement in the communal area is not permitted. It is forbidden to dump personal items that should go to a Sorpa recycling centre in communal areas. Bicycles, pushchairs and prams shall be kept in a special storage area. The storage of motorbikes in the building is forbidden.
  1. Nothing that might obstruct normal passage may be left outside front doors or on paths by the building.
  1. The common car-parking area is only intended for cars in drivable condition. Cars without number plates, trailers, tent trailers, caravans and collapsible campers will be removed from the car park.
  1. Washing may not be hung from the rail of balconies. It is not permitted to store on the balcony anything that could cause discomfort or spoil the look of the building. It is also forbidden to clean carpets or mats on the balcony.
  1. Animals must not be kept in apartments rented from Félagsbústaðir.
  1. It is forbidden to do anything or store anything which is dirty or smelly. Rubbish shall be put in put in packaging that is carefully closed so that nothing escapes from it on its way down the rubbish chute. In line with Félagsbústaðir’s environmental policy, all recyclable waste must be taken to a Sorpa recycling centre.
  1. Residents have equal access to the shared laundry, where this is appropriate, according to rules that have been set on its use.
  1. Tenants are responsible for joint duties concerning cleansing of communal areas, where this is appropriate.
  1. Smoking is banned in the communal areas of the building.

NB: A breach of these rules could mean that the tenancy agreement is rescinded.

Reykjavík, 1. April 2008

The house rules are also available in the following languages on pdf-format: