Yeah, they can charge literally whatever they want- and it keeps rising. You are right about first and last month rent. But there is no point in trying to have that law work for you, because the LL will just take you to court and you will have to pay legal fees, especially if you are then working at all especially in another city-- you will absolutely not have time to fight this in court (even though you might win it eventually) unless you are unemployed. If you are unemployed after handing over your savings, you are homeless and have much more desperate concerns.