There seemed to be some confusion by the location’s front-door description as a B&B — there’s no 2nd B. Also, the check in time is 16:00, not 14:00, as their email specified.
In all, I’d opt for another accommodation in Stykkishólmur. Or, better yet, I’d continue on the afternoon ferry to Flatey Island and stay at the (actual) B&B there. Very unique & peaceful.