What does Let Agreed mean?

What does Let Agreed mean?

If you’re searching for a property to rent, you may have come across the term ‘let agreed’.

But what does it mean and is a ‘let agreed’ property no longer available?

We’ve got all the answers in this guide…
 

What is ‘let agreed’?

When a rental property is marked ‘let agreed’ it means the landlord has agreed in principle to allow a tenant to rent it, subject to credit and Right to Rent checks, and referencing. Both the landlord and the tenant have committed to proceeding with an agreement, but no legally binding documents have been signed.
 

What’s the difference between ‘let’ and ‘let agreed’?

When a property is ‘let agreed’ there is no legal agreement in place and the tenant will need to pass credit and Right to Rent checks, plus referencing. If a property is marked as ‘let’, this means the agreement between the landlord and the tenant is in place and the tenant has either already moved into the property or is about to.
 

What happens when a property is ‘let agreed’?

Once a property is ‘let agreed’ the tenant and landlord, or their letting agent, will go through several stages before signing an agreement and making the tenancy legally binding.
 

1. The tenant pays a holding deposit

To secure the property as ‘let agreed’ while referencing and other checks are carried out by the landlord or their letting agent, the tenant will pay a holding deposit. Under the Tenant Fees Act 2019, holding deposits are capped at no more than one week’s rent.

Once the tenant and landlord enter into an agreement, the holding deposit must either be repaid within seven days of the agreement being signed or be put towards the tenant’s security deposit or first rent payment

The holding deposit should also be refunded within seven days if:

  • The landlord decides not to rent the property to the tenant
  • The deadline for agreement (usually 15 days) has passed but the tenant took all reasonable steps to agree the tenancy
  • The tenant failed a credit check, but was truthful about their financial situation

The landlord may be able to withhold the holding deposit if:

  • The tenant opts not to rent the property
  • The tenant misled the landlord or agent
  • The tenant failed a Right to Rent check
     

2. Credit checks and referencing

Once the property is marked ‘let agreed’ the landlord or their agent will undertake credit checks and referencing to establish the tenant’s suitability.

Standard referencing details the tenant will need to supply include:

  • Three years of address history
  • Contact details for previous landlords
  • Proof of income
  • Employer contact details

Right to Rent immigration checks will also be carried out at this stage.
 

3. Tenancy agreement and deposit

Once the tenant has passed credit, referencing, and Right to Rent checks, they’ll be asked to agree and sign a tenancy agreement with the landlord.

This means the property will go from ‘let agreed’ to ‘let’, with the agreement legally binding for the fixed term of the tenancy.
 

Does ‘let agreed’ mean a property is off the market?

Although a property marked ‘let agreed’ hasn’t been legally secured by the tenant, it does mean they are going through the referencing process.
 

Can a ‘let agreed’ property fall through?

A ‘let agreed’ property can fall through.

This may be because:

The tenant opts to not proceed with the tenancy

The tenant fails credit, reference or Right to Rent checks
 

Further reading…