What is the meaning of ‘LET agreed’?

The world of buying and renting properties can be a confusing place, particularly with so many specialist terms that you don’t come across anywhere else. When strolling your local streets, you might see a ‘LET agreed’ sign outside someone’s home, with no indication to the uninitiated what this phrase actually means.

This blog will delve into exactly what the term means while covering everything you need to know about renting your next property. For more expert tips or listings of properties for sale in Greater Manchester and Lancashire, explore our website and contact us for expert knowledge that will help guide you through the maze of the property industry.

So, what does ‘LET agreed’ actually mean?

Put simply, when you see a ‘LET agreed’ sign either outside a home or on a popular property portal website such as Zoopla or Rightmove, it means that the landlord has agreed to allow a tenant to rent the property. This agreement is only made in principle, however, with there often still needing to be credit inspections, Right to Rent checks and referencing.

Often, by this point, a potential tenant will put down a deposit for the property, but despite this seeming like the final step, the deal doesn’t end upon this payment. Though technically still available to other potential tenants on the market while it remains in a ‘LET agreed’ status, such properties often don’t remain visible for long with the prospective tenant filling out their final pieces of paperwork.

How to get from ‘LET agreed’ to ‘LET’

Once you’re in the ‘LET agreed’ stage there are only a few more steps left before you can confirm the ‘LET’ of a property. The majority of these steps involve the landlord or letting agent carrying out the necessary checks on each tenant before a tenancy agreement can be signed. Once the following checks are completed, the status of the property will switch from ‘LET agreed’ to ‘LET’:

• Credit checks: Passing a credit check involves a letting agent evaluating your credit history to see whether you’re financially trustworthy.

• Guarantor: A guarantor won’t always be asked for by letting agents, with this essentially being a close contact with the tenant that would cover rent and property damage if the tenant didn’t have the funds.

• Referencing: Including income verification, credit checks and, in some cases, references from previous landlords, this is carried out to further establish your financial stability.

• Right to Rent check: This involves the letting agent making sure that the tenant has the right to live in the UK. This can be proven by the prospective tenant supplying a passport, a valid UK driving licence or multiple other documents.

The importance of holding deposits

Putting down a holding deposit is a statement of intent from the prospective tenant, demonstrating that they are committed to renting a property. This, in turn, gives the landlord a sense of security and allows the space and time to carry out the checks outlined in the previous section. Crucially, submitting a holding deposit means that a landlord cannot show the property to anyone else while they still have your money.

The amount of money that is expected of you when setting down a holding deposit depends on the property, however, under the Tenant Fees Act 2019, this fee cannot be more than one week’s rent. Just because the landlord or property manager has accepted the deposit does not mean that the house is yours, however, and if you fail a reference check the deposit must be refunded within seven days. Alternatively, if you’re successful in your application, a holding deposit is often put towards the first month’s rent.

The benefits of ‘LET agreed’

The ‘Let agreed’ status is ultimately a great position to be in for both renters and landlords alike. Once the holding deposit has been paid and you’re confident that you will pass the referencing process, the property is essentially ‘yours’. This stage of the process has several clear benefits:

• Gives buyers confidence: The rental market is highly volatile, with many needing a renters guide to just get through the process. By being transparent with tenants and giving them confidence with a ‘LET agreed’ status, you are guaranteeing them that the property is being held for them, improving their experience and trust going forward.

• Minimises vacancy period: By securing a ‘LET agreed’, landlords can remove the property from the market, saving money while also ensuring that someone will be filling their vacancy as soon as possible.

• Streamlined process: From start to finish, the letting process becomes far simpler, with the final stages of the ‘LET agreed’ status putting off those who aren’t serious about applying.

Find properties for LET in Greater Manchester with Jon Simon

Securing a property to rent can be a really stressful process, that’s why we’re here to help where we can. With over 15 years of experience buying and selling homes, at Jon Simon we are experts in every stage of the process, helping you secure your new favourite property. No matter if you’re looking for a new property to rent, or want some help to distinguish between the terms ‘Sold STC’ and ‘Under Offer’ from one another, explore our website today.

If you’re looking for a new property to ‘LET’ in Burnley, Radcliffe, Ramsbottom or Bacup, visit us in-store or discover our range of lettings now and make your next domestic dream come true.