Leave & License of housing property is already regulated by the government.
As long as Advance Rent or Security Deposit or whatever upfront payments involved are in compliance with the law, I don’t see why Government should get into nitty-gritty details. I’d rather that the government’s bandwidth is used for arguably bigger problems viz. housing for homeless.
In any case, suppose the government tells the tenant, oh, you don’t have enough money for advance / deposit, eh, then go and stay in a cheaper / smaller place so that whatever money you have will cover advance / deposit.
How many Tenants will agree?
By the same token, why should Landlord agree to any government mandate over and beyond the prevailing law?
It’s a free market. You’re free to look around for some other house that suits your situation.