What Does “Let Agreed” Mean In Property?

If you’ve searched for rental properties in the UK recently, you’ve likely come across listings marked as “let agreed.” But what exactly does this term mean, and how does it impact prospective tenants and property buyers? This blog post will examine the meaning of “let agreed” and discuss why it represents an important milestone when renting or purchasing a property.

Key Takeaways – What “Let Agreed” Means

When viewing rental listings, “let agreed” signals:

• A potential tenant has been found and terms agreed in principle
• The property is likely unavailable but still technically on the rental market
• Further steps like reference checks are pending a signed tenancy agreement
• In some cases, you may still be able to make an offer on the property

An Introduction to “Let Agreed” Properties

When a rental property is labelled as “let agreed,” it signals that a potential tenant has been found for the property, and general agreement terms have been reached between the tenant and landlord or letting agent (more on this process shortly).

However, although the major step of securing a viable tenant has been completed, a legally binding tenancy agreement is usually still yet to be finalized.

So in essence, “let agreed” indicates a property rental is imminent but not 100% confirmed in most cases. It’s similar to “sale agreed” or “sold subject to contract” status for home purchases.

Why Do Agents Mark Properties as “Let Agreed”?

There are a few key reasons why a rental property might still be labelled “let agreed” instead of simply being marked as fully rented or taken off the market:

• Keeps other prospective tenants informed – If a listing just disappeared, interested parties wouldn’t know what happened. “Let agreed” signals the property is likely unavailable but still technically on the market.
• Backup options – Agents can keep a waiting list of applicants in case the initial “let agreed” tenant falls through for some legal reason.
• Provides market insights – When many listings switch to “let agreed” status, it indicates heavy real estate demand. This helps agents price and adjust strategy accordingly.

So in most cases, although “let agreed” means a property is likely unavailable, it still provides value to signal market conditions.

The “Let Agreed” Process Step-By-Step

If you’re interested in a rental property labelled as “let agreed,” it can be useful to understand the standard process:

1. Property viewings occur – The landlord/agent offers viewings for the vacant rental unit. Multiple prospective tenants may inspect the property.
2. “Let Agreed” terms reached – One possible tenant makes a verbal offer, and the landlord/agent agrees in principle to the general tenancy terms.
3. Under offer status – The property is now technically “under offer” and marked as “let agreed” on property portals while further steps progress.
4. Reference/credit checks – The potential lessee must pass reference and credit checks before signing an agreement.
5. Legal tenancy agreement signed – With checks passed, the tenant and landlord/agent formally sign the legally binding rental contract.
6. Property rented – On the agreed move-in date, the tenant takes possession of the property and begins paying rent as outlined in the agreement.

So in most standard cases, a “let agreed” listing has an interested tenant and agreed terms but is still undergoing background checks before full completion.

Can You Still Rent a “Let Agreed” Property?

In some cases, it may still be possible to rent a property marked “let agreed” if you act fast:

• The initial chosen tenant could fail reference/credit checks – If they don’t pass, you could make an offer.
• You could attempt to “gazump” with a higher rental offer – But this risks damaging your reputation with the agent.
• Ask to be waitlisted in case of a fallback – You’ll get first refusal if the deal falls through.

However, you usually can’t negotiate directly with the landlord/seller in a “let agreed” scenario – all talks go through the appointed letting agent. And the initial tenant already has an advantage through the reference check process.

So trying to override a “let agreed” status can be difficult. In most cases, it’s better to keep searching for other viable rental options. But you lose nothing from asking an agent to keep you on file as a backup choice.

What Happens If a “Let Agreed” Deal Falls Through?

In some cases, an initial “let agreed” rental arrangement doesn’t ultimately lead to a finalized tenancy agreement. This could happen for various reasons:

• The prospective tenant fails credit/reference checks set by the landlord or letting agency. This indicates they likely cannot afford the rent.
• Unexpected issues arise for the tenant, such as sudden job loss or a change of circumstance meaning they must withdraw.
• The tenant decides to take another property after further consideration or negotiation of agreement conditions.

If a “let agreed” tenant does fall through for any lawful reason, the agent simply contacts the next applicant on file. So if you asked to be waitlisted, you may get an opportunity.

Are you wondering to know how many boxes you will need to move house? Then read this article.

What Is The Difference Between Let And Let Agreed

There is an important distinction between a rental property being marked as “Let” versus “Let Agreed” that prospective tenants should understand.When a property listing states “Let,” it means:

• A tenant has signed a legally binding tenancy agreement
• All reference/credit checks are fully completed
• The tenant will soon move into the property
• The property is now off the rental market

In contrast, “Let Agreed” means:

• A potential tenant has made an offer
• The landlord/agent has verbally accepted this offer
• Further legal steps are still required before completion
• The property is technically still on the rental market

So in summary:

• Let = Deal completed, tenant moving in shortly
• Let Agreed = Offer made/accepted but pending checks and paperwork

“Let Agreed” is similar to “sale agreed” when buying a house – further due diligence is still required. Let indicates the deal is legally finalized.

Conclusion

So while “let agreed” indicates an advanced stage, the property still awaits a binding rental contract. Understanding this term can help assess your options when viewing rental listings.

Whether you’re a prospective tenant or investor, be sure to keep the meaning of “let agreed” in mind when searching property portals like Rightmove!