What Does Let Agreed Mean?

1. What Does Let Agreed Mean?

2. If you’re at the start of your renting journey, you’ve likely come across properties that are let agreed. Perhaps you’ve already found the property you want and signed an agreement, but it’s still being advertised as let agreed on the agency site. So, what does it mean when a property is let agreed? Is it a legally binding contract, and why do landlords use it? Here, we delve into the term and explain what it means to prospective tenants.

3. Let agreed explained When you see a property under let agreed status, it means an offer has been made and agreed on in principle by either the landlord or estate agent. However, before the deal can be finalized, the landlord or estate management company must conduct tenancy checks. These are measures to ensure that the prospective tenant can rent the property and is financially capable of making the rental payments. The process involves credit checks, references from previous landlords, and the right to rent immigration checks. If, for example, the credit checks aren’t good, the landlord might ask the prospective tenant to pay six months rent in advance.

4. Difference between let agreed and let So, as previously mentioned, let agreed is when the landlord agrees in principle to the offer made by the prospective tenant. Until the checks are made, the landlord does not sign the official tenancy contract, which would allow the prospective tenants to move in. What does let agreed mean? In business, there are many things that happen behind closed doors. You may not know exactly what they are or why they're happening. But you do have some control over them. As a result, there is a chance that a let agreed property could fall through and become available to other prospective tenants on the market. At this stage, both the landlord and applicant can walk away from the deal fairly quickly, so it’s a good idea to do as many checks as possible and ensure that it’s the right property before signing the final contract.

5. Can you still view a let agreed property? In principle, you could still view a property that’s under let agreed status. However, depending on the applicant’s strength, most estate agents won’t bother doing viewings until the agreement falls through. In most cases, they will book you for a viewing at a date after the letting agreement should be signed. If the let agreed status drops until then, you’d be the first to see the property and potentially make an offer. Therefore, it’s always a good idea to inquire about let agreed homes that you’re interested in since there’s a chance that you could still get it.

6. Since finding a rental property is becoming increasingly complex, especially in London, it’s a good idea to continue your search for other properties, as you wouldn’t want to waste time waiting for a let agreed home that will likely soon be taken.

7. Is a letting agreement legally binding? Both parties will sign a tenancy application form to reach a let agreed status. The form is not a legally binding document and is used merely to start the checks process. This document simply states the offer made by the prospective tenant and provides their details. If you find a different property that you prefer, you can still walk away without much issue. On the other hand, if landlords identify any areas of concern regarding the prospective tenant, be it financial or through a bad reference, they can also walk away from the deal. The process only becomes legally binding when checks have been made, and both parties agree to terms. At this stage, the landlord and tenant(s) sign the tenancy agreement, which then becomes a legally binding document in the UK.

8. What information does a tenancy agreement include? The tenancy agreement will include important information regarding the tenants, landlord, and tenancy terms. For instance: ● ● ● ● ● ● The details of the tenant(s) The details and address of the landlord(s) Property address Tenancy start and end dates Rental cost Deposit details Prospective tenants must read the tenancy agreement in detail as it will stipulate the rules and regulations for the property. It will state who is responsible for what and when rent payments must be made.

9. What is a holding deposit? This is a deposit you pay to a landlord or property manager to reserve a property. You should get the money back if you find a different property or the landlord finds you unsuitable to rent during the checks process. However, you could lose your money if the landlord approves and you decide not to go ahead or meet the deadlines. Current UK regulations state that a holding deposit can’t be worth more than one week’s rent, which you can calculate by multiplying the monthly rent by 12 and then dividing by 52. If the landlord or property manager asks for more than this amount, you can report them.