I'm not sure what you mean by "squeeze the renter," but it's hard to find any person that invests substantial money (risk) in a business that doesn't want to maximize profits and charge what the market will bear.
Laws became the way they are because policy created a housing shortage, and renters are a bigger voting block than landlords.
I look at it this way: housing is a basic human necessity. Structuring it as a standard business is a detriment to society. Sure, being a landlord is a business, but the whole "maximize profits" thing and "charge what the market will bear" thing should not be allowed for housing.
And the free market shouldn't apply to private property because...?
Free market doesn’t mean no regulations / rules / laws / protections. Of course all rentals are on a free market.