Estimates of rental prices for Bjarg’s apartments

Bjarg íbúðafélag hses. (Housing Foundation) was established by the Icelandic Confederation of Labour (ASÍ) and the Federation of State and Municipal Employees (BSRB). Bjarg is a non-profit foundation and its aim is to provide families with low-income access to long-term tenancies. Bjarg's mission is to provide secure homes.

Bjarg is planning to build about 1400 rental apartments in the next four years, and the company now has close to 238 apartments under construction and about 430 in the design process. The first apartments are scheduled to be ready for rent in July 2019.

Rental prices

Bjarg has made plans for the rental price for apartments in Móaveg, Urðarbrunnur, and Akranes. The plan for rent is based on prices in 2018 and the company's plans for construction costs, interest expenses and costs for the operation of the real estate. Rental rates will be issued when apartments are fully equipped and will take into account the final construction costs. Interest rates on long-term financing will also have a significant impact on rental rates, but capital costs will not be available until apartments will be rented.

During the assets lifespan, the company will make an effort to minimize interest- and operating expenses and will return all benefits to the tenants.

When designing the apartments, efforts were made to make good use of space, and with fewer square meters, the company can offer lower rental prices. This is obtained, for example, by making use of new building regulations regarding the size of space and storage installations. All square meters will be located inside the apartment, but not in part in a storage room in the basement, as is a common practice. The average size of the two-room apartment is about 45 square meters, the three-room apartment is about 70 square meters and a four-room apartment of 85 square meters.

The rental price of the company's property is different from one location to another, but land prices as well as structural terms and how they support the construction of economical housing, have a big impact on the rental price.

Estimated rental price of 2 room apartments is from 96.000 ISK to 130.000 ISK based on operating assumptions and prices in 2018. Payment of rent based on minimum wage could be from 55.000 ISK per person when taking housing benefits into account.

Estimated rental price for 3 room apartments is from 128.000 ISK to 169.000 ISK based on operating conditions and 2018 prices. Payment of rent based on minimum wage could be from 90.000 ISK for a married couple/couple with one child when taking housing benefits into account.

Estimated rental price for 4 room apartments is from 146.000 ISK to 200.000 ISK based on operating conditions and prices in 2018. Payment of rent based on minimum wage could be from 99.000 ISK for a married couple/couple with 2 children when taking housing benefits into account.

Bjarg will also offer studio apartments and the rental rates will be around 15% lower than a 2 room apartment, though depending on the size of the apartment, which may vary. The company will also offer 5 room apartments, which are about 100 square meters in size. Their estimated rental price will be 12% higher than 4 room apartments. The rental price of 5-room apartments will be relatively higher than smaller apartments, taking into account housing benefits, as the current regulation maximizes 4 persons per household.

An application takes place in two steps.

Registrations on the waiting list for Bjarg’s apartments have started and are done online on “my pages” on the website, bjargibudafelag.is. You sign up on a waiting list regardless of which property you want to apply for. Those who sign up before July 31 will be entered in a pool and applicants ordered by drawing lot. Those who sign up from August 1^st are sorted according to their submission date. Available apartments will be advertised for rent, and applicants can apply for certain locations when it becomes available. The number on the waiting list determines allocation.