The rental market can be exciting yet challenging, especially when terms like "Let Agreed" pop up. But what does "let agreed" actually mean? Does it mean the property is taken, or is there still a chance for interested renters? This guide helps you understand the meaning of "let agreed," its significance, and what both tenants and landlords should expect next.
The meaning of "let agreed" also known as “offer accepted”
1. A preliminary agreement
"Let agreed" means that a landlord has provisionally accepted an offer from a prospective tenant. Both parties have discussed key terms such as rent, deposit, and move-in date, but the deal isn’t final.
Think of it as a “handshake” agreement in the rental world—a mutual understanding that’s subject to important next steps like tenant referencing, credit checks, and signing the tenancy agreement.
2. Not legally binding
It’s essential to understand that "let agreed" isn’t a legally binding term. Either party could walk away until the tenancy agreement is signed. This phase is about making sure both sides are happy with the terms and that the tenant passes all necessary checks.
Understanding its non-binding nature
For tenants:
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Property not secured yet: Seeing "let agreed" on a listing means the property is on hold but not officially off the market for a limited time, whilst terms are negotiated.
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Stay prepared: Be ready to provide requested documents like proof of income, credit history, and references.
For landlords:
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Due diligence required: Landlords need to ensure the tenant is reliable by conducting thorough reference and credit checks.
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Conditional agreement: The property isn’t fully let until the tenancy agreement is signed, leaving room for alternative options if the current deal falls through.
The journey to "let agreed"
Viewing and offering
The path to "Let Agreed" starts with property viewings and culminates in making an offer. For tenants, things to consider include:
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Rental price: Understand how the asked rental price compares to other similar properties in the area. This is your starting point and directly impacts your budget.
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Deposit amount: Know the required deposit amount, as it will be a significant upfront cost. Deposits are typically set as 5 weeks' rent.
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Utility and maintenance costs: Ask for average utility costs and any maintenance or service charges not included in the rent. This information will help you gauge the total monthly expenditure beyond just the rent. At Hamptons we will provide you with an EPC (Energy Performance Certificate) for the property which will be helpful in predicting what your utility costs could be.
The process after "let agreed"
1. Background checks
Once a property is "let agreed," the landlord or letting agent will carry out several checks to ensure the tenant is suitable. These checks typically include:
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Credit check: This confirms the tenant’s financial reliability by reviewing credit history, debts, and payment records.
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Employment verification: The tenant’s job stability and monthly income are assessed to ensure they can afford the rent.
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Previous landlord references: Past landlords can provide valuable insight into whether the tenant pays rent on time and maintains the property.
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Right to rent check: This legal check verifies the tenant’s eligibility to live and rent in the UK.
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Guarantor checks: If the tenant requires a guarantor, the guarantor will also undergo similar financial and background checks.
2. Signing the tenancy agreement
Once all checks are completed, both parties will sign a legally binding tenancy agreement. This document covers:
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Rent details: Monthly rent amount, due dates, and payment methods.
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Deposit amount and conditions: Including how it’s protected and when it will be refunded.
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Maintenance and repairs: Defining landlord and tenant responsibilities.
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Utility and service charges: Clarifying who pays for utilities like electricity, water, and council tax.
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Restrictions: Including rules around smoking, and property alterations.
Until this document is signed, either the landlord or tenant could back out of the arrangement.
Implications for tenants and landlords
For tenants
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Pause and assess: "Let agreed" means the property is progressing toward being let, but there’s still a chance it might become available again.
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Be prepared: Have all necessary documents ready to avoid delays. Being proactive can increase your chances of securing the tenancy.
For landlords
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Positive progress: Reaching "let agreed" is a promising step, indicating serious tenant interest.
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Due diligence: Carry out proper checks and ensure the tenancy agreement reflects all discussed terms.
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Property standards: Ensure the property is compliant with legal standards, including safety checks like gas and electrical certifications.
Legal framework: tenant fees act 2019
The Tenant Fees Act 2019 plays a crucial role in the rental process, especially during the "let agreed" phase. It regulates what landlords and letting agents can and cannot charge tenants alongside other key considerations:
Prohibited fees:
Landlords and agents cannot charge tenants for:
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Administration fees: Costs related to processing tenancy agreements.
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Credit check fees: Background checks must be free of charge.
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Inventory and check-out fees: These services cannot be billed to tenants.
Permitted payments:
The only charges allowed by law are:
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Rent payments: As specified in the tenancy agreement.
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Tenancy deposits: Capped at five weeks’ rent for properties with an annual rent under £50,000.
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Holding deposits: Capped at one week’s rent to reserve a property.
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Default fees: Limited to late rent payments or lost keys.
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Utility and council tax bills: If these costs are clearly stated in the tenancy agreement.
Key takeaways
Understanding the "Let Agreed" status is pivotal for navigating the rental market effectively. It marks a significant, yet non-final, step in the rental process, carrying specific implications for both tenants and landlords. By following the outlined steps and preparing for potential obstacles, parties can often transition from "Let Agreed" to a successful tenancy.
For more insights or personalised advice on navigating the rental market, contact us. Our expertise and a vast selection of rental properties can help guide your journey, whether you're listing a property or searching for your next home.
Before a property can be marked as 'let agreed', landlords must ensure it meets all legal letting standards — especially if it's being rented to multiple tenants. Discover how HMO requirements could impact your rental plans — and what you need to do before letting your property.
