rental does go to a extreme, the one that keeps coming to my mind is 'toll castles' that taxed the water ways that apparently the population of europe went on a rampage destroying around 700 years ago...
While maintaining a positive worth to property is fair, its also true that if you turn your land into a service, it should be fair and useful. Many businesses fail, and when you own land you kind of turn it into a business if you want it not to depreciate. No one wants to accept that they got bad unprofitable land, so it starts to get shady. It seems to have more protections then a buisness, because its land. No one seems to care when a business gets destroyed, but if someones land falls in value....
'
I don't think the people are upset that people "live off the rentals". They are upset when they are in lavish because its run slumlord style at extortion prices.