There are over 4.5 million rental properties in the UK (Source: ONS) but competition for quality properties is high, especially in popular areas. There can be a lot of terminology and legal processes to go through in the search for your perfect rental property.
That’s why, when you’re searching online and you find a property you like, only for the words ‘Let Agreed’, your heart may sink a little. Time to keep searching, right? Not necessarily.
But what does Let Agreed actually mean? After all, if a property has been let, why is it still being advertised?
There’s is a small but very significant difference between Let Agreed and Let. Here’s what you need to know about them.
The Important Difference Between Let and Let Agreed
When you see the term Let. Then it is just that. The property has been let out to a tenant and all contracts etc have been completed.
Let Agreed is used when a prospective tenant has indicated they would like to rent a property and has verbally committed to renting it. However, the process is far from complete.
An initial holding deposit will have been received by the landlord or letting agency. This provisionally holds the property while the necessary checks are carried out on the prospective tenant.
The checks carried out by the landlord or letting agent include checking the identity and the right to live in the UK. They also include checks on employment, affordability and credit checks. If a potential tenant has rented previously, references from landlords will also be sought.
What is a holding deposit?
The holding deposit is refundable and can be no more than the value of one week’s rent. When the tenancy begins, the deposit is then deducted from the first month’s rent.
If the tenancy does not go ahead before the ‘deadline for agreement’ and the prospective tenant was not at fault, then the holding deposit is usually refunded.
There are some circumstances in which some or all of the holding deposit can be withheld. These include:
- If a significant amount of work has already been carried out by the letting agent to carry our necessary checks
- The ‘Right To Rent’ assessment is failed by the potential tenant
- Incorrect, false or misleading information is given by the potential tenant
- The potential tenant changes their mind and no longer wishes to rent the property
Once all necessary checks are complete and the landlord and tenant agree on the terms of the tenancy, then the contracts will be signed and the property let will be completed. At this point, the property will be officially and legally let and is off the market.
Can I still register my interest for a Let Agreed property?
Just because a property has a Let Agreed sign, doesn’t necessarily mean that it is now off the market. As mentioned above, there are a number of reasons that a potential letting agreement can fall through. The landlord or potential tenant could change their mind. The potential tenant fails the referencing checks, or both parties fail to reach agreement on the terms and conditions of the let.
While it is quite likely that the property will soon be off the market entirely, there is no reason that you cannot get in touch to register your interest. Should the letting not be completed, the landlord or letting agent can contact you to let you know.
It is still a good idea to keep searching, even if you have registered your interest on a Let Agreed property. You don’t want to let another potential property get away from you.