As a landlord or tenant, you may have come across the term “Let Agreed” during your property search or rental process. Let Agreed is an important concept to understand, as it can impact both landlords and tenants. In this article, we’ll explain the meaning of Let Agreed, the process involved, and the benefits and drawbacks for both parties.

Definition of Let Agreed

Let Agreed means that the landlord has accepted the tenant’s offer to rent a property, but the tenancy agreement has not yet been signed. This is a crucial step in the rental process as it indicates that the property is no longer available to other potential tenants. It’s important to note that Let Agreed does not mean the tenancy has been finalised and signed.

It’s also important to differentiate Let Agreed from other related terms, such as “under offer” or “reserved”. “Under offer” typically means that the tenant has made an offer on the property, but the landlord has not yet accepted. “Reserved” indicates that a tenant has paid a holding deposit to reserve the property but the tenancy agreement has not yet been signed.

Free Landlord Resources

Understanding the Let Agreed process

The Let Agreed process typically involves the following steps:

• Property viewing: The tenant views the property and expresses interest in renting it.
• Offer: The tenant makes an offer to rent the property to the landlord.
• Let Agreed: The landlord accepts the tenant’s offer and agrees to rent the property to them. The tenant will then pay a holding deposit to take the property off the market, which is usually equivalent to one or two weeks’ rent.
• Tenancy agreement: The landlord and tenant agree on the terms of the tenancy agreement and sign it.
• Move-in: The tenant moves into the property.

The Let Agreed process can be affected by various factors, such as the tenant’s financial situation, the landlord’s requirements, and the rental market conditions.

Benefits of Let Agreed for landlords and tenants

Let Agreed can offer several benefits for both landlords and tenants.

Advantages of Let Agreed for landlords:

• The property is taken off the market, reducing the risk of double bookings or time wasted on viewings.
• The landlord has secured a tenant, reducing the risk of rental voids.
• The landlord can start the tenancy agreement process, which can protect their legal and financial interests.

Benefits of Let Agreed for tenants:

• The tenant has secured a property, reducing the risk of losing out to other prospective tenants.
• The tenant can start planning their move, such as arranging for utilities and notifying their current landlord.

Potential drawbacks of Let Agreed

For landlords, the main disadvantage of Let Agreed is that it does not guarantee the tenant will sign the tenancy agreement. This can result in the property being off the market for a period of time, and the landlord having to find new tenants if the initial tenant decides not to proceed.

For tenants, the main risk of Let Agreed is that the landlord may decide not to proceed with the tenancy after accepting their offer. This can result in disappointment and the need to restart the property search.

Conclusion 

Let Agreed is an important concept for both landlords and tenants to understand as it involves the landlord accepting the tenant’s offer to rent a property before the tenancy agreement has been signed. Let Agreed offers several benefits for both parties, however, there is some risk associated with the process, including the tenant not signing the tenancy agreement or the landlord deciding not to proceed. As such, it’s important to be aware of the risks and benefits before committing to Let Agreed.

Free Landlord Resources