> This is a big problem in a lot of places
Where is your evidence of this "big problem"?
No state allows what you describe. This being some sort of widespread problem is a myth that's been running around for decades after Pacific Heights which was part of Hollywood cashing in on white fright in the late 80's early 90's.
For example, in super-liberal Massachusetts: if you are one day late with your rent, the landlord can start eviction proceedings. The tenant is given time to find legal assistance and respond - shockingly, you can't just slap an eviction notice on the door and bounce someone onto the street. You have to prove to a judge that your tenant isn't doing what they should be doing, or is doing things they shouldn't be. Shockingly, your tenant has a right to defend themselves. Do people abuse the process? Sure, some do. They get away with it at most once, because...there's a record of it all in housing court and eviction proceedings are pretty much a deathblow with any landlord doing their homework.
> the risk of inviting someone onto your property who could start squatting or doing drugs and not being able to evict them is beyond the pale for most families.*
...which is why landlords screen tenants for employment/income and renting history, search for records under their name in housing court, and google them to see if they have any arrests in the news, etc. Come on.
> Especially for the edge cases (really bad owners and renters)
Bad landlord far outweight bad tenants in this housing market. Whereas one tenant might make one landlord's life difficult, one bad landlord can make hundreds if not thousands of people's lives miserable and dangerous. Daniel Ohebshalom is a great example:
https://www.nyc.gov/site/hpd/news/017-24/nyc-s-infamous-wors...
That press release is the culmination of something like a decade of housing rights advocates trying to get the city to do something about him. And what did he do? Soon as he go out of jail, he started harassing his tenants:
https://nypost.com/2024/05/01/us-news/nycs-worst-landlord-in...
This isn't some anecdote.
Barry Singer, with an average of 1,804 open HPD violations across seven buildings
Alfred Thompson, with an average of 1,285 open HPD violations across 15 buildings
Karen Geer, with an average of 1,193 open HPD violations across seven buildings
Melanie Martin, with an average of 1,132 open HPD violations across four buildings
Claudette Henry, with an average of 1,130 open HPD violations across 15 buildings
https://www.cbsnews.com/newyork/news/nyc-worst-landlord-list...That list is a "hundred" of the top violators and it's likely the list of landlords with more than a dozen violations is probably more like "thousand" range or higher.
In my city, landlords are infamous for charging all sorts of illegal fees and also stealing people's security deposits under the guise of made-up cleaning and repair expenses; the courts have repeatedly ruled normal cleaning and simple repair (like fixing picture hangar hooks) is not valid reason for using someone's security deposit - it's part of the cost of doing business.
You can take them to housing court - and maybe eventually get your money back - but in the meantime you're definitely not getting your lease renewed so you're left needing to find a new place...without a reference, which pretty much tanks your chances of finding another apartment because the market is so tight.