You may well have come across the term “let agreed” on property listings if you have been looking for rental properties. Knowing what that means will allow you to make better choices in the rental market and also be a little more prepared mentally as you create your shortlist of properties.
Definition: status used by estate agents and landlords signifying a rental property has been reserved pending completion of the paperwork. It simply means that someone has applied for the property, and may have even paid a holding deposit to secure it while their tenancy agreement is being drawn up.
This is where the property can be found between “available to let” and “let”. It’s a version of “sold subject to contract” in property sales. For Cheltenham Letting Agents, visit https://www.meandyouestateagents.co.uk/lettings
What Happens Next — Let Agreed Status
There are numerous essential actions going on throughout this time. The landlord or letting agent would perform necessary reference checks on the potential tenant including employment verification, previous landlord references and also credit checking. Similar additional documentation to a proof of income, bank statement and identification documents might also be required of the tenant.
At the same time, both sides agree on any conditions and finalise all details necessary for moving in: move-in dates, deposit amounts, etc… The home is usually taken off the market during this time.
How Long Does Let Agreed Last
Usually 1-3 weeks, until all docs signed and reference checks complete. But this process can extend when there are reference issues, paper-work delays or tenancy terms in negotiation.
Indeed. Top reasons for breakdown are due to failed reference checks, the tenant chooses not to proceed, issues with the details of tenancy or use or the owner decides against this applicant.
What This Means
So if you like the look of a property which has been marked as let agreed do make sure to register your interest with the agent. If the current deal dies, you could and in most cases will be put on a list. During the let agreed period some agents go out of their way to scout for backup applicants.
Moving Forward
For prospective tenants — seeing “let agreed” means you have missed out on that particular property, but there could be others. If your own application is let agreed, it’s important to respond quickly and efficiently if asked for any kind of documentation in order to ensure that everything runs as smoothly as possible.
How tenancy deposits are capped and protected
Once a property is let agreed, the next step for most tenants is paying a deposit. This sum protects the landlord against damage, unpaid rent or other breaches of the tenancy, but the money always belongs to the tenant. The landlord or letting agent simply holds it.
Under the Tenant Fees Act 2019, the deposit is capped at five weeks’ rent where the annual rent is below £50,000. In England and Wales, landlords and agents must by law protect the deposit in a government-approved scheme. There are three: the Deposit Protection Service, mydeposits and the Tenancy Deposit Scheme. Scotland and Northern Ireland have their own schemes.
Schemes work in one of two ways. In a custodial scheme, the deposit is paid into the scheme and held until the tenancy ends and any issues are resolved. In an insurance-based scheme, the landlord keeps the money in a separate account and pays an insurance premium to cover it. Either way, tenants who meet the terms and leave the property in good condition can reclaim their deposit.