When you see a property you would like to rent, what does Let Agreed mean?
So, what does let agreed mean?
For a property to be let agreed the following conditions must be met:
- The property was put up for rental
- Someone has viewed the property and confirmed that they would like to let it
- The estate agent has confirmed the offer to rent the property to the landlord; and
- The landlord has, in principle, agreed to let the property to the tenant in question.
- However, the full tenant checks, deposit payment and signing of the rental agreement have not yet been made.
Let’s look at each of these aspects of agreeing a let of a property in a little more detail.
What Does Letting A Property Entail?
They either do this part time, alongside a business or a full time job, or they even make a living from doing this full time.
They buy one or several properties and let them out to different tenants for a monthly rental income.
These people are the landlords in the property lettings market.
Tenants In Property Letting
The people who let or rent the properties from the landlord are called ‘tenants’.
With house prices increasing so much over the years, many people cannot afford to buy a property, so letting a property becomes their option.
Other people prefer to rent so as not to tie up all of their money in a property.
Letting A Property
To find new tenants for rental properties, the landlord asks an estate agent to list the property for rental, just like people do when selling a property.
The estate agent displays the property for letting on their website and also on the major online property rental platforms such as Rightmove.
Tenants arrange to view the property and if they like it, they confirm that they would like to rent it to the estate agent, who passes on the offer made to the Landlord.
If he agrees to the offer made (which as rentals are hugely in demand is usually the price asked for by the landlord), the landlord accepts and the offer is now agreed in principle subject to the formality of the rental process.
This is now the “Let Agreed” part of a property letting.
What does Let Agreed mean on a property on Rightmove? Well, it is the same thing, so read on to see if this means you cannot let the dream rental property that you have just found on Rightmove.
Paying A Deposit For Letting A Property
Often the tenant will pay a deposit to secure the property while the formal process of letting is completed.
This tenant deposit will be repaid within 7 days if the rental does not proceed for any reason, or it can be applied to the holding deposit or the first month’s rental if the tenancy goes ahead.
Reasons For The Landlord Not To Repay The Deposit
There are legitimate reasons that a deposit will not be repaid including:
- The tenant misled the landlord or estate agent
- The tenant decided not to rent the property through no fault of the landlords, or
- The tenant failed the Right To Rent checks.
What Happens After Let Agreed?
Once the tenant has agreed the rental and paid a holding deposit, the formal credit checks will be made to ensure the tenant is in a good position to rent the property.
These checks include:
- Proof of three years of address history
- Employer details and proof of income
- Details of any previous rentals (so that references can be obtained from former landlords)
If all of these checks come back positive, the tenant signs the agreement and the property is now Let.
What Does It Mean When A Property Is Let
The property is now Let (rented) for an agreed amount under contract and will not become available for rental by any other tenant until the end of the rental agreement.
If A Property Is Let Agreed Can You Still Try And Let It?
If a property is Let Agreed, this means that you can approach the letting agent to enquire about letting it.
You can either:
- Ask the letting agent to put forward a higher rental offer to gazump the Let Agreed tenant’s offer.
- Ask the letting agent to give you first refusal of the current Let Agreed rental falls through.
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