Muslim World Report

Rethinking Landlordism and Embracing Cooperative Business Models

Dr. Anthony Lindsay | Jun 6, 2025 10:19 AM | 9 min read | 1769 words

Rethinking Landlordism and Business Ownership: A Call for Cooperative Models

TL;DR: The housing crisis is deepening due to landlordism and centralized business models, hindering community well-being and exacerbating economic inequality. This post explores the potential of cooperative housing and business models as alternatives that promote equitable ownership, local empowerment, and community stability.

The Situation

As of mid-2025, the housing crisis continues to dominate discussions across urban centers globally. The intensifying scrutiny of landlordism and centralized business ownership reflects a critical junction for communities grappling with rising rental prices and a troubling proliferation of vacant properties owned by distant investors. This growing trend:

  • Displaces long-term residents
  • Tightens the grip of wealth within a select few
  • Reveals stark economic inequalities

Housing, instead of being recognized as a fundamental human right, has increasingly been commodified (Aalbers, 2017; Rolnik, 2013).

The financialization of housing is particularly concerning, as entities like Real Estate Investment Trusts (REITs) prioritize profit maximization at the expense of resident needs. This dynamic exacerbates gentrification and marginalization of low-income populations, triggering political unrest and social fragmentation (Mulgan, 2006; Ehlenz, 2018). Predatory landlord practices magnify these issues, leading to soaring rates of homelessness and the erasure of entire communities amid escalating housing costs.

The challenge extends beyond the mere existence of landlords; it is the prevailing model of property ownership that enables a monopolization of resources by wealthy investors, consequently undermining local economies and community cohesion (Maldonado & Rose, 1996).

In light of these considerable challenges, there is an urgent need for systemic change. A reconceptualization of economic models to emphasize cooperative ownership can play a pivotal role in addressing these issues. This approach not only emphasizes equitable access to housing and business opportunities but also challenges the entrenched systems of exploitation that have long marginalized low-income communities and perpetuated cycles of inequity.

What if cooperative housing models gained traction?

The notion of cooperative housing models gaining traction presents a revolutionary potential for reimagining property ownership dynamics. Some of the benefits of cooperative housing include:

  • Community-driven initiatives: Residents collectively own and manage their living spaces.
  • Focus on community benefit: Shifts homeownership from individual profit to collective welfare (Del Río, 2022; Bredenoord, 2017).

Should cooperative housing models become more widely accepted, the consequences would be transformative. Residents empowered to participate in decision-making could reshape their living conditions, leading to:

  • Greater stability and investment in local infrastructure
  • Mitigation of turnover rates
  • Fostering a sense of belonging—elements vital to community cohesion

As people become more involved in their living environments, civic engagement is likely to flourish, with residents taking on active roles in enhancing their neighborhoods (Guseinova & Afanasyeva, 2019). Such cooperative models serve as a counterforce against entrenched inequalities rampant in current housing systems, particularly benefiting marginalized groups often excluded from conventional homeownership pathways (Ehlenz, 2018).

What if legislation actively curbed landlordism?

The imagined scenario of governments enacting stringent regulations to curtail landlordism opens up pathways for revolutionary change in the housing sector. Possible measures could include:

  • Limiting monopolization of housing stock held by wealthy investors
  • Enforcing caps on rental increases
  • Promoting the development of social housing (Arnstein, 1969)

Establishing housing as a human right would cultivate conditions under which low-income families could thrive in stable neighborhoods. This stability, in turn, fosters local economic activity and reduces dependency on state assistance (Maldonado & Rose, 1996). Legislative measures that incentivize corporate landlords to align their practices with community needs could generate a competitive environment favoring locally-owned enterprises, enhancing community welfare as corporate priorities shift to include the needs of residents alongside profits (Aalbers, 2017).

What if cooperative businesses became the norm?

Envisioning a scenario where cooperative businesses become the norm allows for significant reconfigurations of economic power structures. This shift could manifest in widespread adoption of:

  • Employee stock ownership plans (ESOPs)
  • Cooperative enterprises

If cooperative businesses were to take center stage in the economic landscape, the ramifications would be profound. Employees would become stakeholders, directly invested in their workplaces, likely resulting in:

  • Enhanced job satisfaction
  • Increased productivity

Traditional management hierarchies could give way to governance models grounded in democratic principles, fostering a culture of collaboration and innovation (Maldonado & Rose, 1996). Additionally, cooperative businesses might adopt sustainable practices more readily, reinforcing their interdependence with local communities and contributing to a robust local economy (Guseinova & Afanasyeva, 2019).

Such a seismic shift in the business paradigm could ignite a movement against the prevailing capitalist ideologies that prioritize individual profit over collective good. The expansion of cooperative models could serve as a catalyst for a broader societal transition toward participatory economic systems that emphasize equity, solidarity, and communal well-being.

Strategic Maneuvers

Addressing the multifaceted challenges posed by landlordism and centralized business ownership requires strategic maneuvers that elevate cooperative models and promote equitable practices. For policymakers, initial engagement with communities is crucial to understanding their unique aspirations regarding housing and business. Key strategies may include:

  • Developing supportive policies for cooperative housing initiatives and locally-owned businesses
  • Funding programs for community land trusts and cooperative housing projects to safeguard affordable housing options
  • Offering tax incentives favoring cooperative endeavors, coupled with penalties for excessive property holdings (Maldonado & Rose, 1996)

Policymakers should consider integrating cooperative principles into public housing policies, focusing on shared ownership models that prioritize resident decision-making.

Community organizations play a crucial role in empowering grassroots advocacy around cooperative models, fostering awareness of their benefits while promoting discussions about landlordism and economic equity (Maldonado & Rose, 1996; Ehlenz, 2018). This approach should be complemented by encouraging existing companies to transition toward cooperative structures or employee ownership models. By allowing employees to play a vital role in decision-making and profit-sharing, organizations can foster a sense of ownership and accountability that translates into improved outcomes for both employees and communities (Gertjan, 2020).

Ultimately, individuals have the power to transform their roles as consumers and investors. Supporting local businesses and cooperative models nurtures a community-centric approach to economic activity that reinforces mutual aid and solidarity (Ehlenz, 2018). Collectively, these strategic maneuvers can initiate a transformative shift toward a more equitable society, grounded in cooperation rather than competition.

The Role of Cooperative Housing and Business Models

The integration of cooperative housing and business models can significantly alter the trajectory of our urban centers and economies. Cooperative housing has demonstrated success across various regions, showcasing how residents can collectively manage their living environments, reducing inequities that arise from landlordism. Likewise, cooperative businesses are emerging as viable alternatives to traditional profit-driven enterprises, emphasizing community engagement and worker empowerment.

Moreover, the principles underlying cooperative models share commonalities that can benefit both housing and business sectors, including:

  • Shared governance
  • Equitable profit distribution
  • Focus on long-term sustainability

These principles enable communities to work collaboratively toward their objectives, resulting in resilient local economies that prioritize the needs of their residents.

Case Studies from Around the World

To further understand the potential of cooperative models, examining successful case studies from various parts of the world can provide valuable insights. Notable examples include:

  • Vienna’s social housing model: Lauded for its effectiveness in providing affordable living options while maintaining community cohesion, emphasizing resident governance alongside significant investments in social infrastructure (Rolnik, 2013).

  • Mondragon, Spain: A federation of worker cooperatives demonstrating how cooperative business models can thrive and contribute to broader economic stability by prioritizing worker welfare and engagement, showcasing the potential to transform labor relations and community well-being.

  • Community land trusts (CLTs) in the U.S.: Gaining traction as a means of combating speculation and ensuring housing affordability, these nonprofit organizations work to secure land for the long-term benefit of communities, offering opportunities for cooperative housing initiatives that can help reduce the stranglehold of corporate landlords.

Successful CLTs like the Burlington Community Land Trust in Vermont demonstrate that residents can control their housing futures through cooperative efforts, leading to lasting change.

Challenges to Cooperative Models

Despite the promising potential of cooperative models, certain challenges must be addressed to facilitate their growth and scalability. Some significant barriers include:

  • Prevailing regulatory landscapes: Often favoring traditional models of ownership and investment, which may hinder cooperative initiatives from securing funding or navigating zoning laws.

  • Raising awareness: Many individuals may be unaware of the advantages that cooperative structures can offer, leading to skepticism or resistance.

  • Meeting diverse needs: Ensuring that cooperative models effectively meet the diverse needs of their constituents is essential for their long-term success.

Striking a balance between inclusivity and governance can be challenging, as cooperative entities may struggle to engage all members meaningfully. Building strong communication channels and fostering a culture of participation can help mitigate these challenges and encourage active involvement from all stakeholders.

Future Directions for Cooperative Models

Looking forward, the potential for cooperative housing and business models to shape urban landscapes and economic systems cannot be overstated. As awareness of the issues surrounding landlordism and centralized business ownership continues to grow, there exists an opportunity to advocate for cooperative models as viable solutions.

Developing networks of support for cooperative initiatives can enhance their visibility and strengthen their impact. Policymakers can facilitate partnerships between cooperatives and local governments, creating pathways for collaboration that emphasize shared goals and mutual benefit.

By fostering an ecosystem of support that includes technical assistance, capacity-building programs, and access to capital, communities can empower cooperative efforts that address both housing and economic inequities. Furthermore, integrating cooperative principles into educational curriculums and community programs can cultivate a culture of cooperation among future generations. By instilling values of shared ownership, collaboration, and mutual aid, we can nurture a mindset that prioritizes collective well-being over individual profit.

References

Aalbers, M. B. (2017). The financialization of housing. International Journal of Urban and Regional Research. DOI: 10.1111/1468-2427.12522

Arnstein, S. R. (1969). A ladder of citizen participation. Journal of the American Institute of Planners, 35(4), 216-224. DOI: 10.1080/01944366908977225

Bredenoord, J. (2017). Self-managed cooperative housing. Journal of Architectural Engineering Technology. DOI: 10.4172/2168-9717.1000188

Del Río, S. (2022). Conceptualising the commons as a relational triad. Geoforum. DOI: 10.1016/j.geoforum.2022.09.007

Ehlenz, M. M. (2018). Making home more affordable: Community land trusts adopting cooperative ownership models. Journal of Community Practice. DOI: 10.1080/10705422.2018.1477082

Feather, C., & Meme, C. K. (2019). Strengthening housing finance in emerging markets. Housing Studies. DOI: 10.1080/02673037.2019.1584663

Gertjan, W. (2020). The de-financialization of housing. Housing Studies. DOI: 10.1080/02673037.2020.1762847

Glaeser, E. L., Gyourko, J., & Saks, R. E. (2005). Why have housing prices gone up? American Economic Review, 95(2), 329-333. DOI: 10.1257/000282805774669961

Khalil, A. (2017). Cooperative housing in urban contexts. International Journal of Housing Markets and Analysis. DOI: 10.1108/ijhma-06-2018-0044

Maldonado, R., & Rose, R. D. (1996). The application of civil rights laws to housing cooperatives. Fordham Urban Law Journal. Restored URL.

Rolnik, R. (2013). Late neoliberalism: The financialization of homeownership. International Journal of Urban and Regional Research. DOI: 10.1111/1468-2427.12062

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