That is the best argument as to why the government should stay out of this.

The landlord is just as sovereign as the tenant and neither has any greater power over the other because both need the other. Without tenants the landlord would have his property foreclosed on. Without landlords willing to rent tenants would usually not have anyplace to live.

Both are sovreign and both are equally able to decide what terms they are willing to agree to in a rental contract, the government interfering in that negotiation inevitably removes sovreignty from one, the other, or both.