WHAT DOES ‘LET AGREED’ MEAN?
Jordane Thompson
October 15th, 2020
Share this post
Start your property portfolio today!
Struggling to wrap your head around what ‘Let Agreed’ actually means? We unravel this common piece of buy to let jargon.
When a buy to let board reads ‘Let agreed’, it’s saying something very specific – something that you must be aware of whether you’re a property’s tenant or its landlord.
As a property investor, you’ll most often come across ‘Let Agreed’ during your search for comparables as you eye up your market competition and to calculate your all-important rental yield. A figure you cannot afford to misjudge, even with BMV properties!
As we all know, being successful in property relies on two main factors: you having a good nous for deals with a high profit potential (we can help you with that if you’re struggling) and most importantly, being knowledgeable of the property buying process. Possess these key attributes and if you ask us, you’re already 10 steps ahead. (Get in!)
And as with all education, before you master anything complex, you must establish the basics first. So to ensure the foundations of your property knowledge are solid, we’ve dissected what ‘Let Agreed’ means so you don’t have to…
WHAT DOES ‘LET AGREED’ MEAN?
In a nutshell, if a property is marked ‘Let Agreed’ it means that the landlord has reached a ‘word of mouth’ agreement with a potential tenant, who has not yet passed their referencing checks or signed a tenancy agreement.
Think of ‘Let Agreed’ as the bridge between ‘To Let’ and ‘Let’ – much like Sold Subject To Contract (SSTC) is with a property sale. It assures the tenant that the property is reserved and gives the landlord time to properly vet the tenant before giving them the green light.
Usually when a property is ‘Let Agreed’, the landlord will consent to no further viewings and the tenant will put their property search on pause.
Be cautious – don’t mark your property ‘Let Agreed’ for anybody. You should only use ‘Let Agreed’ if you’re confident that a potential tenant will pass your referencing checks and respect your property.
Why? Because doing so can deter other potential tenants from enquiring, many of whom may be a better fit. Plus, if a house has been market ‘Let Agreed’ numerous times without being Let, potential tenants could end up thinking that you’re a troublesome landlord. Not ideal!
WHAT HAPPENS AFTER ‘LET AGREED’?
After a property turns ‘Let Agreed’ it can go one of two ways. Either the landlord has chosen wisely (giving those referencing and affordability checks a big TICK) and decides to let the property to the tenant, in which case its status would change to ‘Let’. Or the other rather sour alternative is that the deal could fall apart, meaning the property will either re-enter the lettings market or be withdrawn completely.
But why could this be so? Keep reading to find out…
CAN ‘LET AGREED’ FALL THROUGH?
Okay, we hate to be the bearer of bad news, but yes, properties that are ‘Let Agreed’ can fall through.
And you can’t pin it on just one reason. As anyone landlord will know, there’s a whole plethora of variables involved in buy to let, many of which can quickly cause a tenancies (that at first glance look promising) to crumble and fall apart.
It’s worth remembering that until the tenancy agreements are signed by both parties that the deal is still very much unconcluded. So to help you spot when this may happen and do any necessary preparation, here’s just a few reasons why a property that’s ‘Let Agreed’ could fall through…
How tenants could cause a ‘Let Agreed’ property to fall through
- The tenant gets a bad reference from a previous landlord or employer.
- After an affordability check, it’s clear the tenant isn’t earning enough to comfortably pay the rent.
- A bad credit score reveals that the tenant isn’t financially reliable, and has lapsed on regular payments in the past.
- The tenant is found to have a previous criminal record.
How landlords could cause a ‘Let Agreed’ property to fall through
- They receive a strong offer to sell the property and decide to withdraw their equity instead.
- There becomes an issue with the property, which makes it unsafe to rent or less appealing to the potential tenant. For instance, a structural issue or vandalism from a previous tenant.
- They decide against new tenants as their current tenants now wish to extend their agreement. An easy quick-win for the landlord.
- They demand a large deposit which the tenant cannot afford to pay upfront.
WILD CARD:
- Either the tenant or the landlord has an issues with the tenancy agreement. This will usually be an Assured Shorthold Tenancy agreement, more commonly known as an AST.
WHY DO PEOPLE ADVERTISE PROPERTIES AS ‘LET AGREED’?
Good question. If potential tenants aren’t allowed to book a viewing and apply to rent a property, why is it still sat on a property portal? Surely now it’s ‘Let Agreed’ you’d take it off, right? Well, not necessarily. Discover why this is the case below…
‘Let Agreed’ means exposure
Marking a property ‘Let Agreed’ and keeping it listed on a property portal is actually quite a wise idea. You see, by doing so it’s kept on people’s radar, which can be a useful tool if your chosen tenant fails to tick all your boxes. Reintroduce your property to the market and hopefully you won’t see too much of a lull in interest, maybe even a surge if there’s been a backlog.
FYI: Changing the status of a property could see it be re-mailed around potential tenants who’ve added it to their favourites/ watchlist.
‘Let Agreed’ is great for comparables
It’s not only potential tenants that click the ‘Rental’ tab on a property portal – landlords do it too, usually to assess the condition of the market and how much properties are renting for. However, tenants do much the same, so by leaving your property active online you could be doing 2 good deeds in 1 (how thoughtful!).
‘Let Agreed’ = free agent promo
As we all know, estate agents revel in the opportunity for free promotions or advertising. So it’s worth remembering that having a property that’s gone to ‘Let Agreed’ in a short period of time looks good for the agent, providing it proceeds to be ‘Let’ and doesn’t slide back into ‘To Let’. As a result, the agent could go on to secure many more deals off the back of it, expand their network of contacts and grow their commissions.
HOW FAST CAN YOU GET A PROPERTY ‘LET AGREED’ FAST?
Speed sits at the heart of a solid buy to let strategy – without one of these you stand to loose out on months worth of rent, which can easily scar your yield and prevent you from getting your buy to let ‘Let Agreed’ fast. Not good! So, to help you identify the areas where you shave those precious seconds, we’ve compiled a list of the measures you can take to ensure your property achieves ‘Let Agreed’ status FAST…
Choose a speedy solicitor
A solicitor is the machine behind every property purchase, so it’s important that you don’t pick one with a rusty reputation. A well oiled solicitor is prompt in dealing with the your legal documentation (searches, enquires etc.), doesn’t forget the fine details and muscles your purchase through in a short period of time.
Slow conveyancing services can be costly! Not only can they rob you of your rental income for months, but they can also mean you have to push back any renovation or development plans. All of which can see you enter the rental market at a later date. Hence why if you want your property to go ‘Let Agreed’ fast, we’d always advise you opt for a professional legal service that’s backed up by a good reputation.
Remember, quality of service outweighs a solicitor’s initial price as in most instances an efficient but more expensive service can save you money, time and hassle down the line.
Want to judge a solicitor’s speed before instructing them?
Question them on their service and see how long they take to get back to you. If this is anything over a couple of days and we’d steer well clear.
Streamline your tenant vetting
As you’ve learnt, tenant vetting is one of the most crucial components when bridging the gap between ‘Let Agreed’ and ‘Let’. Make a mess of it and it’ll catapult you all the way back into ‘To Let’ territory (Yikes!). So although mastering your tenant vetting doesn’t necessarily speed up your purchase until after ‘Let Agreed’, it can prevent you from having to reach it multiple times.
If you’re too busy to spend your time referencing tenants when your property reaches ‘Let Agreed’ , then don’t let it slow you down. There’s a variety of tenant referencing companies out there that will do the job for you.
Buy chain free
Buying chain free is hands down the easiest way to avoid hassle during a property purchase. Purchase through a typical estate agent and getting caught up in a chain is highly likely – in short, bad news for your timescale.
Reason being that if the seller of the property you want to buy is yet to find an onward purchase, then you’ll have to wait for them to do so. Not ideal, when you’re a ‘happy go lucky’ investor and they’re a picky and choosy homebuyer. And even if by some miracle they have found an onward purchase, what’s to say the seller of that property is proceedable? You can see where this is going, and that’s even before the legal side of things has began!
You see, for those of you looking to reach ‘Let Agreed’ fast, chains are also bad news for conveyancing. The more parties involved in the sale drags more solicitors into the equation, which can slow the process down quite dramatically, even if you’ve chosen your solicitor wisely. One slow solicitor is all you need to hold up an entire chain. Hence why if you’re looking to reach ‘Let Agreed’ FAST, we’d always advise making a chain free purchase priority.
Before you ask, ALL properties sourced by us are chain free! Plus, if you’re looking to sell a property in order to fund a buy to let, then our sister company, The Property Buying Company, could also help you sell your house fast.
Buy through a good agent
The most traditional way to buy a property is through an agent, so it’s likely that unless you know of a private sale (in which case “Bravo!”), this is the route you’re most likely to consider. That is unless you’re willing to accept the risks that come with an auction purchase – something we’d advise against, particularly if you’re a newbie investor.
Now don’t get us wrong, going through an agent is perfectly fine providing you can find a property with no chain that’s got a motivated seller who’s willing to accept a cheeky offer. But if you ask us, that’s a VERY rare occurrence, as most people selling through agents are homeowners who have a habit for adding sentimental value onto their asking price.
IS THERE A BETTER ALTERNATIVE?
Well, we like to think so.
As an experienced BMV (Below Market Value) property seller, we put high yield deals at your fingertips – a great help when you’re looking to achieve ‘Let Agreed’ status FAST. Being a BMV property seller, we also offer you a discount from the start, completely eradicating the need for all those cheeky offers or the huge chunk of time you’d waste trying to source deals like this for yourself.
Jordane Thompson
October 15th, 2020
Share this post
Start your property portfolio today!
Struggling to wrap your head around what ‘Let Agreed’ actually means? We unravel this common piece of buy to let jargon.
When a buy to let board reads ‘Let agreed’, it’s saying something very specific – something that you must be aware of whether you’re a property’s tenant or its landlord.
As a property investor, you’ll most often come across ‘Let Agreed’ during your search for comparables as you eye up your market competition and to calculate your all-important rental yield. A figure you cannot afford to misjudge, even with BMV properties!
As we all know, being successful in property relies on two main factors: you having a good nous for deals with a high profit potential (we can help you with that if you’re struggling) and most importantly, being knowledgeable of the property buying process. Possess these key attributes and if you ask us, you’re already 10 steps ahead. (Get in!)
And as with all education, before you master anything complex, you must establish the basics first. So to ensure the foundations of your property knowledge are solid, we’ve dissected what ‘Let Agreed’ means so you don’t have to…
WHAT DOES ‘LET AGREED’ MEAN?
In a nutshell, if a property is marked ‘Let Agreed’ it means that the landlord has reached a ‘word of mouth’ agreement with a potential tenant, who has not yet passed their referencing checks or signed a tenancy agreement.
Think of ‘Let Agreed’ as the bridge between ‘To Let’ and ‘Let’ – much like Sold Subject To Contract (SSTC) is with a property sale. It assures the tenant that the property is reserved and gives the landlord time to properly vet the tenant before giving them the green light.
Usually when a property is ‘Let Agreed’, the landlord will consent to no further viewings and the tenant will put their property search on pause.
Be cautious – don’t mark your property ‘Let Agreed’ for anybody. You should only use ‘Let Agreed’ if you’re confident that a potential tenant will pass your referencing checks and respect your property.
Why? Because doing so can deter other potential tenants from enquiring, many of whom may be a better fit. Plus, if a house has been market ‘Let Agreed’ numerous times without being Let, potential tenants could end up thinking that you’re a troublesome landlord. Not ideal!
WHAT HAPPENS AFTER ‘LET AGREED’?
After a property turns ‘Let Agreed’ it can go one of two ways. Either the landlord has chosen wisely (giving those referencing and affordability checks a big TICK) and decides to let the property to the tenant, in which case its status would change to ‘Let’. Or the other rather sour alternative is that the deal could fall apart, meaning the property will either re-enter the lettings market or be withdrawn completely.
But why could this be so? Keep reading to find out…
CAN ‘LET AGREED’ FALL THROUGH?
Okay, we hate to be the bearer of bad news, but yes, properties that are ‘Let Agreed’ can fall through.
And you can’t pin it on just one reason. As anyone landlord will know, there’s a whole plethora of variables involved in buy to let, many of which can quickly cause a tenancies (that at first glance look promising) to crumble and fall apart.
It’s worth remembering that until the tenancy agreements are signed by both parties that the deal is still very much unconcluded. So to help you spot when this may happen and do any necessary preparation, here’s just a few reasons why a property that’s ‘Let Agreed’ could fall through…
How tenants could cause a ‘Let Agreed’ property to fall through
- The tenant gets a bad reference from a previous landlord or employer.
- After an affordability check, it’s clear the tenant isn’t earning enough to comfortably pay the rent.
- A bad credit score reveals that the tenant isn’t financially reliable, and has lapsed on regular payments in the past.
- The tenant is found to have a previous criminal record.
How landlords could cause a ‘Let Agreed’ property to fall through
- They receive a strong offer to sell the property and decide to withdraw their equity instead.
- There becomes an issue with the property, which makes it unsafe to rent or less appealing to the potential tenant. For instance, a structural issue or vandalism from a previous tenant.
- They decide against new tenants as their current tenants now wish to extend their agreement. An easy quick-win for the landlord.
- They demand a large deposit which the tenant cannot afford to pay upfront.
WILD CARD:
- Either the tenant or the landlord has an issues with the tenancy agreement. This will usually be an Assured Shorthold Tenancy agreement, more commonly known as an AST.
WHY DO PEOPLE ADVERTISE PROPERTIES AS ‘LET AGREED’?
Good question. If potential tenants aren’t allowed to book a viewing and apply to rent a property, why is it still sat on a property portal? Surely now it’s ‘Let Agreed’ you’d take it off, right? Well, not necessarily. Discover why this is the case below…
‘Let Agreed’ means exposure
Marking a property ‘Let Agreed’ and keeping it listed on a property portal is actually quite a wise idea. You see, by doing so it’s kept on people’s radar, which can be a useful tool if your chosen tenant fails to tick all your boxes. Reintroduce your property to the market and hopefully you won’t see too much of a lull in interest, maybe even a surge if there’s been a backlog.
FYI: Changing the status of a property could see it be re-mailed around potential tenants who’ve added it to their favourites/ watchlist.
‘Let Agreed’ is great for comparables
It’s not only potential tenants that click the ‘Rental’ tab on a property portal – landlords do it too, usually to assess the condition of the market and how much properties are renting for. However, tenants do much the same, so by leaving your property active online you could be doing 2 good deeds in 1 (how thoughtful!).
‘Let Agreed’ = free agent promo
As we all know, estate agents revel in the opportunity for free promotions or advertising. So it’s worth remembering that having a property that’s gone to ‘Let Agreed’ in a short period of time looks good for the agent, providing it proceeds to be ‘Let’ and doesn’t slide back into ‘To Let’. As a result, the agent could go on to secure many more deals off the back of it, expand their network of contacts and grow their commissions.
HOW FAST CAN YOU GET A PROPERTY ‘LET AGREED’ FAST?
Speed sits at the heart of a solid buy to let strategy – without one of these you stand to loose out on months worth of rent, which can easily scar your yield and prevent you from getting your buy to let ‘Let Agreed’ fast. Not good! So, to help you identify the areas where you shave those precious seconds, we’ve compiled a list of the measures you can take to ensure your property achieves ‘Let Agreed’ status FAST…
Choose a speedy solicitor
A solicitor is the machine behind every property purchase, so it’s important that you don’t pick one with a rusty reputation. A well oiled solicitor is prompt in dealing with the your legal documentation (searches, enquires etc.), doesn’t forget the fine details and muscles your purchase through in a short period of time.
Slow conveyancing services can be costly! Not only can they rob you of your rental income for months, but they can also mean you have to push back any renovation or development plans. All of which can see you enter the rental market at a later date. Hence why if you want your property to go ‘Let Agreed’ fast, we’d always advise you opt for a professional legal service that’s backed up by a good reputation.
Remember, quality of service outweighs a solicitor’s initial price as in most instances an efficient but more expensive service can save you money, time and hassle down the line.
Want to judge a solicitor’s speed before instructing them?
Question them on their service and see how long they take to get back to you. If this is anything over a couple of days and we’d steer well clear.
Streamline your tenant vetting
As you’ve learnt, tenant vetting is one of the most crucial components when bridging the gap between ‘Let Agreed’ and ‘Let’. Make a mess of it and it’ll catapult you all the way back into ‘To Let’ territory (Yikes!). So although mastering your tenant vetting doesn’t necessarily speed up your purchase until after ‘Let Agreed’, it can prevent you from having to reach it multiple times.
If you’re too busy to spend your time referencing tenants when your property reaches ‘Let Agreed’ , then don’t let it slow you down. There’s a variety of tenant referencing companies out there that will do the job for you.
Buy chain free
Buying chain free is hands down the easiest way to avoid hassle during a property purchase. Purchase through a typical estate agent and getting caught up in a chain is highly likely – in short, bad news for your timescale.
Reason being that if the seller of the property you want to buy is yet to find an onward purchase, then you’ll have to wait for them to do so. Not ideal, when you’re a ‘happy go lucky’ investor and they’re a picky and choosy homebuyer. And even if by some miracle they have found an onward purchase, what’s to say the seller of that property is proceedable? You can see where this is going, and that’s even before the legal side of things has began!
You see, for those of you looking to reach ‘Let Agreed’ fast, chains are also bad news for conveyancing. The more parties involved in the sale drags more solicitors into the equation, which can slow the process down quite dramatically, even if you’ve chosen your solicitor wisely. One slow solicitor is all you need to hold up an entire chain. Hence why if you’re looking to reach ‘Let Agreed’ FAST, we’d always advise making a chain free purchase priority.
Before you ask, ALL properties sourced by us are chain free! Plus, if you’re looking to sell a property in order to fund a buy to let, then our sister company, The Property Buying Company, could also help you sell your house fast.
Buy through a good agent
The most traditional way to buy a property is through an agent, so it’s likely that unless you know of a private sale (in which case “Bravo!”), this is the route you’re most likely to consider. That is unless you’re willing to accept the risks that come with an auction purchase – something we’d advise against, particularly if you’re a newbie investor.
Now don’t get us wrong, going through an agent is perfectly fine providing you can find a property with no chain that’s got a motivated seller who’s willing to accept a cheeky offer. But if you ask us, that’s a VERY rare occurrence, as most people selling through agents are homeowners who have a habit for adding sentimental value onto their asking price.
IS THERE A BETTER ALTERNATIVE?
Well, we like to think so.
As an experienced BMV (Below Market Value) property seller, we put high yield deals at your fingertips – a great help when you’re looking to achieve ‘Let Agreed’ status FAST. Being a BMV property seller, we also offer you a discount from the start, completely eradicating the need for all those cheeky offers or the huge chunk of time you’d waste trying to source deals like this for yourself.
Large discounts on property
Completely transparent
Tailored investment opportunities
We’ll handle everything for you
Looking for hassle free property?
We’ve got you! Whatever your motivations as a landlord or property owner are, we can help source and match property with you.
When the foundations of your company are built upon industry knowledge and experience, you can’t help but be a self-confident company.
Here at The Property Sourcing Company, we are led by a roster of industry experts who have over 50 years of combined experience in doing BMV property deals, as well as packaging them up for investors.
Quality sits at the heart of our team, who go the extra mile to tailor our service to you. We pride ourselves in our ability to source you a wide variety of high-yield property investments.
Get in touch and we’ll establish what type of property you’re searching for, before talking you through our current investment opportunities. We’ll also keep you posted as we acquire new deals.
When you buy your investment property through us and we’ll take care of solicitors, surveys – everything – all to ensure you have a stress-free property purchase. It’s just one of the ways we make investment work for you.
Why invest with us?
Simply put, we’ll get you the best possible deal. Our sister company, The Property Buying Company, have been in the property buying industry for years & we have access to all their stock which is at a price point that is ready for investors to buy and make a great return on.
No middlemen, no stress & no hassle. We make investing in property and growing your portfolio as easy as it possibly can be.
