Its a valid hypothetical. I can't give you a definitive answer to this, but I can give you some general things to think through.
First of all, there are no taxes. So the average person would have more disposable income than they do today.
Second of all, there is no corporatism. No big corporations lobbying "the government" to make difficult laws and licensing procedures that make it hard for other people to compete. No Eric Garner's being forced out of business because some established companies don't want competition. No barbers being forbidden to offer their services because they don't have licenses. I suspect there would be a few careers in which people would want to make sure that the person providing the service is qualified (like a surgeon) so in those cases, people would likely only be willing to see surgeons that have their skills verified by some reputable organization, whether a reputable college or whatever. But there would be no arbitrary, binding rules on everyone that prohibit certain people from entering the market. And if a person decides to pick a less skilled, unverified worker to do whatever for them because its cheaper or whatever, that's an option.
So, anybody with even a little money can start a business easily, and no compulsory taxes. Most people would spend a small amount of their income to hire a private police force to come help them in cases of crime, but nobody is even being forced to do that. If you need 100% of your income for essentials, you can do that, and nobody will force you to do otherwise.
And third of all, there are no regulations on landlords. This is actually a double-edged sword. Yes, on the one hand maybe it means landlords can charge high prices, but on the other hand, it means its very easy to be a landlord. So there would be competition among landlords to give land to tenants. I don't see why, in such a situation, a tenant would sign an agreement that lets the landlord just arbitrarily raise the price like that, at least not without having some type of an "out."
Now, I also think private charity is very important. And I'm not really saying I like circumstances like the ones you describe. But I don't think "imbalance of power" is nearly the evil that outright force is. I support peace, not just peace in overt cases like war, but also in subtler cases like stealing from or kidnapping people because you don't like their behavior.