For those entering into the rental market for the first time, terms such as ‘Let Agreed’ can leave them scratching their heads. Does this mean the property is no longer available? Does moving a rental to Let Agreed status make the tenancy legally binding? Is there a difference between ‘Let Agreed’ and ‘Let’?
In today’s post, we’ll answer all of the above for you and clear up everything else in between. Let’s get started with the term itself.
What does Let Agreed mean?
Let Agreed means a prospective tenant has expressed a desire to rent the home in question, they have made a verbal offer, and the landlord has accepted it. A deposit will also be placed by the tenant to move the property to Let Agreed, but the deal is not yet finalised.
Is there a difference between Let and Let Agreed?
Most definitely. While a property is under Let Agreed status, there are still a number of boxes that need to be ticked. Landlords will want to see references, perform checks, and get paperwork signed off before agreeing to sign a Tenancy Agreement.
At this stage, tenants need to produce all the necessary documentation and ensure everything is up to date and accurate in order to expedite the process. If the tenant has a guarantor backing their tenancy, they too will be subject to similar checks before the property is moved to the final stage of being ‘Let’.
So, in short, if a property is Let, the deal is done and there is a tenancy agreement in place. Let Agreed, on the other hand, means there are still a few loose ends to tie up.
So, are Let Agreed homes still on the market?
Technically, yes, but it does mean that another tenant has shown a strong interest in the property and that they are in the process of being checked out by the landlord offering the home. So, while they are theoretically still available, in reality they’re probably not going to be before too long.
This begs an obvious question, Why keep Let Agreed properties on the market at all?
Well, although it’s highly likely Let Agreed properties will move to Let in due course, this isn’t always the case, so both landlords and agents prefer to keep properties available for others to express interest, should they wish to do so.
Can properties marked Let Agreed still fall through?
Yes, properties marked Let Agreed can fall through, and for a number of reasons.
One or more of the aforementioned checks may not be cleared or either party may simply change their mind. Sometimes tenants get cold feet, sometimes landlords decide not to let the property after all. Until both parties have signed a tenancy agreement, the deal remains very much in the balance.
Should you pursue a Let Agreed property or give up on it?
With all this in mind, what should you do if you stumble across a property you adore but it has a Let Agreed status? Should you pursue it, or move on?
In our opinion, the best course of action to take would be to make an enquiry, but keep your expectations in check. To all intents and purposes, a property marked Let Agreed is likely to get away from you, but you never know.
Speak to the agent handling the property and inform them of your interest. Just don’t put all of your eggs into this particular basket.
Regardless of which side of the rental market you find yourself on, be it tenant or landlord, Petty Son and Prestwich is a name you can trust. We have been handling property in and around East London for well over a 100 years, and we’d love to help you realise your property dreams, too.
Our team of letting experts can help guide you through the process of renting your next home if you’re a tenant, or letting your property if you’re a landlord.
We also offer a comprehensive list of Property Management packages to help you handle your portfolio, which will allow you to concentrate on the day-to-day aspects of growing your buy-to-let business. Give us a call today to find out exactly how we can be of service to you.