Can't believe I am just now writing a review for this place. Stayed here for 5 days the first week of July 2013. Was greeted by Ernesto, the caretaker. He gave me a warm welcome and tour of the guest house. It is well appointed, cozy and in a prime location (5 min walk to main downtown strip). I had the single guest room straight up the stairs.
The guest house (I don't want to call it a "Hostel" because it really isn't) is fantastic. Has two clean bathrooms, a nice kitchen, living room and other amenities (sauna, etc.). They use a color system to identify personal food items and communal items. There is a nice espresso machine for your use.
I can not say enough nice things of Bedda. She was kind, quirky, informative and helpful...all in the best of ways. She is a music nut (like myself) and knew I played guitar and one day brought over one of her personal guitars for me to strum. Bedda...THANK YOU again! I owe you a vinyl.
Iceland became a very personal, special place to me because of the experiences I had. I will be back for sure and will not stay anywhere other than Our House.