Where I live, once you rent a flat, the landlord is legally allowed to rise the fee only by a small amount every year (related to the CPI). Also, most of the rentings are long term and the landlord is not allowed to kick you out (except for some exceptional events).

So, when you choose a place to live, you know that you can plan your life there. Also, you don't need to be scared for the landlord blackmailing you.

I guess that both systems work. It's just different models of society.