The 7 Junk Fees Landlords Charge That Are Often Illegal

The CFPB estimates that junk fees cost American renters over $3.4 billion annually. Most renters pay them without question, assuming every fee in a lease is legitimate. Most aren't.

Here are the 7 most common junk fees landlords charge — and which ones are likely illegal in your state.

1. "Administrative" or "Processing" Fees

You'll see these described as "lease processing fees," "administrative fees," or "move-in processing fees." They're usually $100–$500 and they're charged on top of a security deposit for... nothing specific. In most states, landlords can only charge what the law explicitly permits — and "admin fee" isn't on the list.

2. Move-In / Move-Out Fees

A move-in fee charged separately from a security deposit is a red flag. The security deposit is supposed to cover move-out cleaning and damage — charging an additional "move-in fee" for the same purpose is double-dipping. Many states explicitly prohibit this.

3. Late Fees That Exceed State Maximums

Every state that allows late fees sets a cap — usually 5-10% of monthly rent, or a flat dollar amount. A $200 late fee on a $1,200/month apartment is legal nowhere in the US. Yet landlords charge it constantly.

4. Mandatory "Amenity" Fees

A growing trend: charging $50–$150/month for a "resort-style amenity package" that includes a gym, pool, or dog park — even if you never use them. In many states, fees for amenities must be tied to actual services provided and consented to. Mandatory bundled fees are increasingly being challenged in court.

5. Utility Markup Fees

When landlords pay utilities and bill tenants back, they sometimes add a markup — charging $140 for $100 worth of electricity. Most states prohibit reselling utilities above actual cost. If your lease includes a "utility service fee" on top of your metered usage, that's often illegal.

6. Lease Renewal Fees

Charging $100–$300 to process a lease renewal is pure junk. You're continuing to rent the same unit — there's no product being delivered. These fees have been struck down or prohibited in several jurisdictions.

7. "Damage Waiver" or "Deposit Waiver" Programs

Instead of a refundable security deposit, some landlords charge a non-refundable monthly "damage waiver" fee. This is effectively a forced insurance program — but unlike actual insurance, it doesn't protect you. It only protects the landlord.

What to Do If You Spot These Fees

1. 1
   Flag it

   Note the exact fee name and amount in writing before signing.
2. 2
   Research your state

   Look up your state's landlord-tenant statute (or use LeaseGuard AI to do it instantly).
3. 3
   Negotiate

   Request the fee be removed in writing. Most landlords will fold on clearly illegal charges.
4. 4
   Contact a tenant hotline

   Most states have free tenant rights hotlines operated by housing nonprofits.