The majority of the US has had free market pricing for renting for two centuries, and the scheme you're describing has historically been the extreme rarity, not the common.
Further, in a market system there's no such thing as: "landlords would be able to rise the fee as much as they want." Not even close. I don't believe anyone can fail to understand what happens next when a landlord tries to command ten times their prior rent. People are not hostages, they move.
Further, in a market system there's no such thing as: "landlords would be able to rise the fee as much as they want." Not even close. I don't believe anyone can fail to understand what happens next when a landlord tries to command ten times their prior rent. People are not hostages, they move.