When searching through property listing sites for a new rented property, you may have come across the term ‘let agreed.’ This term means that an agreement has been made between the landlord or letting agent and a potential tenant. You might think its rather illogical to keep this property displayed on the site.
However, it’s not always the case that this property comes off the market straight away. The property is not yet being rented and is subject to change. It is therefore convenient to be able to keep track of a property you are interested in, rather than seeing it has left the site and forgetting about it.
What does ‘let agreed’ mean?
So, ‘Let Agreed’ means that an agreement has been made in principle between the landlord and potential tenants. There may have been a holding deposit paid. This amount is usually valued at around one weeks rent. However, before a deal can be completed and tenants are able to move in, referencing checks need to be completed. Credit checks, immigrations checks and references from previous landlords may be collected. This is to assure the landlord that the potential tenants will meet their terms and conditions.
In most circumstances, unfortunately, if you see a property as ‘let agreed’ it is likely going to become unavailable. This is unless something falls through with the potential tenants offer. At this stage it is best not to get your heart set on the property returning to the market.
Don’t lose all hope however. Nothing has legally been agreed at this point. If you are genuinely interested in this property, contact the letting agent to receive alerts for availability of this property. If you do this and the agreement does fall through, you’ll be the next in line to rent that property
Just ensure you do not get too invested in this outcome as it is rare. Often the ‘let agreed’ notification is simply a precaution before the official agreement is made.
What does ‘let’ mean, compared to ‘let agreed?’
As previously mentioned, a ‘let agreed’ property means there is an agreement but a contract has not yet been signed. Once all references are completed and the rental agreement has been signed, the property is then ‘let.’
There can also be variations within the agreements made between landlords/letting agents and tenants.
- Assured shorthold tenancy agreement (AST)
These are the most common forms of tenancy agreement made between landlords and tenants. It is a standardised form of agreement that is recognised by UK housing law. This agreement guarantees the tenants rights to rent and enjoy the property for an agreed amount of time. It also provides rights to the landlord to resume possession of the property once the contract concludes.
Are there any differences between letting and renting a property, or are they the same thing?
‘Renting’ and ‘Letting’ are typically used colloquially and are interchangeable. They both mean that a tenant is paying rent to a landlord in agreement with a contract to live in a property.
In a literal sense, a tenant rents a property from a landlord. Whereas, a landlord lets a property to the tenant. The vast majority of people understand either term within this context however.
What does it mean to Lease a property?
Another term that crops up in discussion of letting and tenancy, is the leasing. A lease is a long-term agreement in comparison to renting which is usually short term. A lease is still a rental agreement however.
You are more likely to see the term ‘lease’ in commercial buildings rather than rental accommodation.
Why are properties advertised as ‘let agreed’ when they are not actually going to be available for rent?
Finding a property that could potentially be your dream home can be really exciting. However, seeing that it is ‘let agreed’ can be heart-breaking. You might be wondering why they bother to keep the property online, is it just to disappoint people just like you?
There are a few reasons why letting sites actually keep a property online after it is let agreed.
- Despite the property being off the market with prospective tenants preparing to move in, it is not completely guaranteed that the agreement will be made final. It is unlikely to fall through at this stage but that doesn’t mean unforeseen circumstances can’t occur. Listing the property as ‘let agreed’ lets other potential tenants be aware of the property. This allows them to get in touch to register their interest which makes the process easier for the letting agent and landlord should the current tenants fall through.
- Displaying properties that are categorised as ‘let agreed’ can be beneficial for prospective tenants and any other parties interested in local rental markets. It gives an indication of how the market is currently behaving. If you are monitoring properties in an area that you are looking to move to and you notice a large number of properties that get listed and then quickly become ‘let agreed’, you will know the market is moving quickly and you need to act fast.
- Many people tend to browse property listing sites and save properties to come back to later. Instead of deleting the property altogether, leaving the individual without an explanation, let agreed provides useful information in regards to its status. If they then wish to act on the property at the last minute, they are able to contact the agent to register their interest.