What Does Let Agreed Mean?
For both prospective tenants and landlords, Let Agreed signifies an important and exciting step in the letting process.
However, despite typically indicating a positive development, there often exists some confusion surrounding the term, particularly regarding what it confirms and the steps that follow.
In this blog, we will clearly define the term and specify what is expected of prospective tenants and landlords once the ‘Let Agreed’ status is confirmed.
Defining Let Agreed
We can begin by clarifying what Let Agreed actually means.
Let Agreed refers to the period when the prospective tenant takes the initial step towards securing the tenancy.
This happens after the prospective tenant expresses interest and the landlord accepts that interest based on a non-contractual agreement regarding lease duration, rent payment, and other conditions, such as included amenities.
While a Let Agreed is not binding, it serves as a strong indication that, if all goes well, the property will be offered to the prospective tenant.
Why does Let Agreed Occur?
Let Agreed can feel like an inconvenient extra step for prospective tenants due to the feeling of uncertainty that might hang over the property, and it may also be confusing to other parties interested in the property.
Despite this, Let Agreed serves a valid purpose in setting expectations for all parties. It indicates that an informal decision has been made, providing prospective renters with peace of mind and security, with the suggestion that, if contractual stipulations are met, the property will be theirs to rent.
However, it also indicates that other interested parties must measure their expectations, but should remain on standby should the current prospective renter fail to meet the stipulations laid out by the landlord.
So, how does a property progress from Let Agreed to Let status?
The next steps following Let Agreed status
While a property is Let Agreed, it’s important to note that it technically remains on the market despite any non-contractual indications that it is being let. This will not change until all related parties have signed the official tenancy agreement.
Here are the steps that landlords usually go through after the Let Agreement:
Background checks
To be considered eligible for renting, a prospective tenant must pass several checks, including a credit check to demonstrate financial security and a right-to-rent check to verify the individual’s legal right to reside in the UK.
Referencing
In addition to credit and right-to-rent checks, the renter may be obliged to provide references from previous landlords.
Similar to references on a job application, this provides landlords with peace of mind regarding financial behaviour and the security of working with a particular renter.
Guarantor
In some cases, where a prospective tenant presents a risk, a guarantor may be required to recoup funds should the renter fail to pay their rent.
A guarantor may be required in cases where individuals are likely to move to another country at short notice, are likely to cause property damage, or have a poor or non-existent rental history.
Tenancy Deposit
Finally, to progress from Let Agreed to Let, a tenant deposit (anything from a month’s rent to two months’ rent) is required in advance. It is usually paid at this stage.
While this is typically retained until the tenancy concludes, the deposit can be fully refunded should the landlord choose not to proceed with renting the property.
Once all of the above has been confirmed and completed to the satisfaction of all parties, the tenancy agreement can be signed, and the property can be moved to Let status.
Conclusion
With further information on the Let Agreed process, you should now be able to pursue rental properties with confidence.
Should you have any further queries regarding the process or concerns about your eligibility based on any of the aforementioned factors, please do not hesitate to contact our experienced team, who will be more than happy to provide any information you may require.
