Citizens Advice Bureau (CAB) recently warned tenants that many rental agencies are ripping them off routinely by charging either excessively or unfairly.

In a recent statement, it says that some letting agencies are charging tenants £600 or more over and above the rent. They charge them under various disguises, like tenant reference fee, admin fee and rental agreement charge etc. The fees charged are hardly a true reflection of the actual costs incurred to provide these services.

For example, many agencies charge up to £275 to check references, up to £200 to renew the tenancy agreement. CAB, who surveyed 1300 tenants and investigated 424 lettings agents, reckons that many such charges are 'excessive' and 'unjustified'. When asked, most of these agencies described as 'routine'.

David Harker, Citizens Advice Chief Executive said, "“People often think that renting through an agent is a safer option than dealing direct with a landlord, but our evidence clearly shows that it can be a risky business for tenants. While many tenants receive a good service, others are not so lucky, finding themselves paying through the nose for an unprofessional and unresponsive service, sometimes forced to live in dangerous conditions and losing large sums of money if the agent goes out of business."

He added, "Business for letting agents is booming as the recession forces more people into the private rented sector both as tenants and landlords. Allowing letting agents to go on operating completely unchecked in these circumstances is totally unacceptable. Regulation cannot come soon enough.”