Let STC importance in 2024 for Renters and Landlords

When browsing property for rent listings, it’s common to see the label ‘Let STC’ or Let Agreed’ in property listings on Rightmove, Zoopla or other similar property websites. But what does Let STC mean? And what are the implications of ‘Let STC’ as a landlord or property investor? Read further, as I explain everything that landlords and property investors need to know about ‘Let STC’ properties.

Table of Contents

What Does Let STC Mean?

Let STC, or Let Subject To Contract, means that the landlord of a property has agreed in principle to let it to a potential tenant, but the tenancy agreement has not yet been signed. The landlord will need time to check the tenant’s references, run a credit check on them, confirm their identity, and do other verifications prior to creating and signing the tenancy agreement. So the property could soon be officially let, but the tenant or landlord can still back out at this stage.

Landlords perform these checks to make sure that the tenant is legally allowed to rent a property in the UK, that they have a job or other financial support that means they can afford to rent the property, and that their credit score is good enough. Some landlords also ask for guarantors, to pay the rent in case the tenant cannot, or references from previous landlords the tenant has rented from. The first one of these is called Right to Rent and is the only one that is mandatory – the others are up to the landlord.

Some landlords will take a holding deposit to ‘hold’ the property and add the Let STC label to the property listing while they complete the preliminary checks. This deposit can not legally be any more than a week’s worth of rent. If the landlord decides not to let to that tenant, they will have to give the deposit back, if the potential tenant pulls out, then they will not get their deposit back.

What’s The Difference Between Let and Let Agreed?

If a property is labelled ‘Let’, then a tenancy agreement has been signed by the new tenant and the landlord, and the property is no longer available to let. If a property listing says ‘Let STC’ or let agreed, then it will most likely change to ‘Let’ pretty quickly. If the tenant or landlord backs out and the contract never gets signed, the Let STC label will be removed and the property will continue being advertised to potential renters.

Can People Still Make an Offer on Let STC?

In short, yes they can, although unless the first tenant decides not to rent the property or the landlord doesn’t want to rent to them, they might be wasting their time.

Let STC – What It Means For Landlords and Investors?

If you are a landlord or a property investor who wants to offer your property for rent, then you need to be familiar with Let STC. As mentioned previously, you can take a holding deposit from a tenant who wishes for the property to be reserved by them until you can perform the necessary checks. This deposit must be no more than a week’s worth of rent as per the Tenant Fees Act 2019. Once a deposit has been taken, you have a maximum of 15 days after which time you must either agree to let the property to the prospective tenant or give them their money back, depending on certain conditions. The landlord can either repay the deposit or allow the tenant to put it towards their rent payments or a security deposit.

The landlord can keep the holding deposit if:

The tenant decides not to rent the property
The tenant fails the Right to Rent check
The tenant misled the landlord about their financial situation

The tenant gets the holding deposit back if:

The landlord decides not to rent to them.
The landlord takes more than 15 days to come to an agreement, and the tenant has taken all reasonable steps to obtain the tenancy.
The tenant failed a credit check but was honest about their financial situation.

FAQ: Can You Continue Viewings on a Let STC Property?

You can continue to advertise the property, albeit with a Let STC label on the listing, and can still allow viewings of the property, although it might be a waste of time for all parties if you do end up renting the property to the first prospective tenant. You may also create some animosity with the potential tenant if you continue to hold viewings, especially if you have taken a holding deposit. This could lead to them looking for a different property. Not labelling a property as let STC on a property listing website does not make any difference to the agreement in principle, you will still need to either rent the property to the tenant or give their deposit back.

Once you have agreed to rent your property to a tenant, you should ensure that all legal requirements such as the drafting and signing of the tenancy agreement by both parties are completed before the status of the property changes from Let STC to Let. Always maintain a good level of communication with your tenant and other interested parties during the Let STC phase to manage expectations and reduce the risk of any misunderstandings or potential disputes. Until the agreement has been signed, you should remain flexible and ready to let the property to a different tenant. People’s circumstances can change rapidly and unexpectedly, so it’s wise to keep your options open just in case.

Ready To Build Job Replacing Income With Property?

Do you want to learn more about the world of property investment? Join me at Assets For Life’s property investment courses or FREE property investment summits – click here to sign up now.