The landlords could then pay rents to the local government. We could call that landlord taxes or something and use that to fund local services with them. Wait...
Property taxes are voted on by property owners under the steepest moral hazard while leases are actually competitive: this is the difference between the government capturing a minimal vs maximal fraction of the land rents.
If you genuinely think there is little difference, why do you care so much about not switching to a lease system?
Chicago has relatively affordable housing purchase prices as property taxes are very high. The government has taxed away property appreciation. Unfortunately the deferred compensation promises they have made to public sector employees are coming due and further tax hikes are needed.
If you genuinely think there is little difference, why do you care so much about not switching to a lease system?