Understanding the difference between ‘Let’ and ‘Let Agreed’ when renting out your property can not only affect your legal obligations and financial outcomes, but it can also impact your tenants’ satisfaction and your reputation as a landlord. In this article, we’ll guide you through the key differences between the meaning of Let and Let Agreed and provide practical tips on managing your properties during each stage.

What is Letting?

Letting is a term used when a landlord has agreed to rent out their property to a tenant for a fixed period, usually for at least six months. At this stage, the tenant has signed the tenancy agreement, paid the deposit and first month’s rent, and moved into the property. As a landlord, you have legal obligations to ensure that the property is safe and meets all the necessary standards. For instance, you should arrange an annual gas safety check and electrical safety inspection, ensure that the property is free from hazards, and provide the tenant with the right to live in the property undisturbed.

An example of a property that has been Let is a three-bedroom flat in central London. The landlord has advertised the flat on a property website and received several inquiries. After conducting background checks and interviews, the landlord has selected a tenant who has agreed to sign the tenancy agreement and pay the deposit and first month’s rent. The tenant has moved into the flat, and the landlord has provided them with a copy of the inventory and a set of keys

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What is Let Agreed?

Let Agreed is a term used when a landlord has accepted a tenant’s offer to rent out their property, but the tenancy agreement has not been signed yet. At this stage, the tenant has viewed the property, expressed their interest, and made an offer, which the landlord has accepted, subject to further checks and negotiations. The tenant may also have paid a holding deposit to secure the property and prevent it from being let to other tenants.

An example of a property that is Let Agreed is a two-bedroom house in Manchester. The landlord has advertised the property on a property website and received several inquiries. A potential tenant has viewed the house, liked it, and made an offer of £900 per month, which the landlord has accepted, subject to background checks and a tenancy agreement. The tenant has paid a holding deposit of £300 to secure the property and prevent it from being let to other tenants.

Key differences between Let and Let Agreed

The main difference between Let and Let Agreed is that Letting is a legally binding agreement between the landlord and the tenant, whereas Let Agreed is a provisional agreement subject to further checks and negotiations. When a property is Let, the landlord has legal obligations to maintain the property and provide the tenant with specific rights and protections. On the other hand, when a property is Let Agreed, the landlord is not yet bound by these obligations, and the tenant may still back out of the agreement without losing their holding deposit.

As a landlord, it is essential to manage your properties effectively during the Letting and Let Agreed process. For instance, you should communicate clearly with your tenants about the tenancy agreement terms, the rent, and the deposit. You should also conduct thorough background checks to ensure that your tenants are reliable and trustworthy. Additionally, you should maintain your property to a high standard, resolve any issues promptly, and keep accurate records of all transactions.

Conclusion

In summary, understanding the difference between Let and Let Agreed is crucial for UK landlords who wish to rent out their properties effectively and responsibly. While Letting is a legally binding agreement between the landlord and the tenant, Let Agreed is a provisional agreement subject to further checks and negotiations.

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