How to Identify and Protect Yourself From Predatory Landlords

Renting a home should be simple, but some landlords exploit tenants through excessive fees, neglected maintenance, and manipulative lease agreements. Tenants unaware of their rights may overpay or endure substandard living conditions.

Recognizing the warning signs of an unscrupulous landlord can help tenants avoid financial and legal trouble. Understanding common tactics used to take advantage of renters allows for better protection before signing a lease and provides options for action if issues arise.

Security Deposits Over the Legal Limit

Many states cap security deposits, but some landlords ignore these limits to collect excessive upfront payments. In California, the maximum deposit is two months’ rent for an unfurnished unit and three months for a furnished one, while New York limits deposits to one month’s rent under the Housing Stability and Tenant Protection Act of 2019. Tenants unaware of these rules may overpay, unnecessarily tying up funds.

Some landlords try to bypass these restrictions by labeling extra charges as “move-in fees” or “holding deposits,” which may not be refundable. While legitimate administrative fees exist, non-refundable charges must be clearly outlined in the lease and comply with state laws. In Illinois, landlords must pay interest on security deposits for buildings with 25 or more units, while New Jersey requires deposits to be placed in interest-bearing accounts with accrued interest returned annually.

Hidden Maintenance or Repair Cost Demands

Some landlords shift repair costs onto tenants using vague lease clauses that make renters responsible for “minor repairs” without defining what qualifies. In some cases, they demand payment for major structural issues, plumbing failures, or electrical problems—expenses that should legally be covered by the property owner.

In Texas, landlords must maintain heating, plumbing, and electrical systems under the state’s property code. If a landlord refuses to fix a broken water heater and insists the tenant pay, they may be violating state law. Similarly, Massachusetts law requires landlords to manage pest infestations, yet some attempt to charge tenants for extermination caused by structural deficiencies.

Some landlords impose maintenance fees after a tenant moves in, using vague lease terms to shift responsibility for repairs. In Seattle, where landlords must handle habitability-related repairs, tenants can challenge such charges through local housing authorities.

Another tactic involves charging tenants for repairs that were never completed or were done at inflated costs. A landlord might claim they hired a contractor for a plumbing issue and then deduct an excessive amount from the tenant’s next rent payment without providing an invoice. In California, tenants have the right to request documentation of repair costs if they are being charged directly.

Excessive Late Payment Penalties

Some landlords impose steep late fees that far exceed reasonable administrative costs, turning a minor delay into a financial burden. While late fees are legal in most states, they must generally be reasonable and proportionate to the landlord’s actual losses. In Colorado, late fees are capped at the greater of $50 or 5% of the monthly rent. Despite such limits, some landlords structure late fees as daily accruals, quickly inflating the total owed.

Some lease agreements include escalating penalties, where a tenant who misses a payment deadline by a few days may owe far more than the original rent due. A lease might stipulate a $100 late fee after three days, followed by an additional $25 charge for each subsequent day unpaid. Courts have struck down excessive late fees as “unconscionable,” but tenants often lack the resources to challenge them.

Some landlords use late fees to pressure tenants into signing unfavorable lease amendments or waiving certain rights. A tenant struggling to catch up on rent may be offered a payment plan that includes additional administrative fees or requires them to forfeit their security deposit to avoid eviction. In extreme cases, landlords use accumulated late fees to justify eviction filings, even when the tenant has been making good-faith efforts to pay.

Inconsistent or Sudden Rent Increases

Some landlords impose abrupt or disproportionate rent hikes to maximize profits. While rental prices fluctuate due to market conditions, predatory landlords may increase rent significantly from one lease term to the next or even mid-lease by exploiting poorly worded agreements. In rent-controlled areas like San Francisco, laws limit annual increases to a set percentage—3.6% in 2024—but outside such jurisdictions, landlords have broader discretion. Without local regulations, tenants may face a 20% or higher jump in rent with little recourse.

Lease agreements that include vague language about “market adjustments” or “variable rent structures” can justify unpredictable increases. Some landlords offer below-market rents initially to attract tenants, only to impose steep hikes after the first lease term, banking on the financial and logistical burden of moving to discourage relocation. In Florida, where no statewide rent control exists, tenants must rely on lease terms to prevent such practices. Those with month-to-month agreements are especially vulnerable, as landlords can raise rent with as little as 15 days’ notice.

Fees for Ending a Lease Early

Breaking a lease often comes with financial consequences, but some landlords impose excessive penalties that go beyond reasonable compensation for lost rental income. While leases commonly include early termination clauses, predatory landlords may structure these fees to make moving out financially unfeasible. Some demand tenants pay rent for the remainder of the lease term, even if the landlord finds a new tenant quickly, effectively collecting double rent. Others charge arbitrary flat fees that far exceed the actual costs of re-renting the unit.

State laws vary on how much landlords can charge for early termination. In Minnesota, landlords must make a reasonable effort to re-rent the unit before holding a tenant liable for remaining rent. In Texas, landlords can charge a set penalty if it is clearly outlined in the lease. Some tenants unknowingly agree to clauses requiring two or three months’ rent as an early termination fee, an amount that may be disproportionate to the landlord’s actual financial loss. In cases where a tenant must leave due to job relocation or health issues, some states offer legal protections, such as California’s law allowing victims of domestic violence to terminate a lease without penalty.

Charging for Normal Wear and Tear

When tenants move out, landlords can deduct repair costs from the security deposit for damages beyond normal wear and tear. However, some landlords exploit this process by charging tenants for routine deterioration that naturally occurs over time. This can include minor scuffs on walls, faded paint, or carpet wear in high-traffic areas—issues that result from everyday use rather than tenant negligence. Some landlords go further by charging for full replacements of flooring, appliances, or fixtures when only minor repairs or cleaning are necessary.

Many states provide guidelines on what qualifies as normal wear and tear versus tenant-caused damage. In Washington, the Residential Landlord-Tenant Act prohibits landlords from withholding security deposits for depreciation or minor cosmetic issues. Despite such protections, landlords may still attempt to deduct for repainting an entire unit or replacing carpets that have naturally aged. Tenants can protect themselves by documenting the condition of the unit upon move-in and move-out with photos and written records. Some states, like Maryland, require landlords to provide an itemized list of deductions within a set timeframe, ensuring transparency in how security deposits are handled.