In the event when large landlords own and manipulate major portions of the lands, rental feudalism come into existence. For the purpose of cultivation, the landowners generally divide the whole land into small segments and the sharecroppers cultivate those portions of land .
The cultivators necessarily agree upon the tenure of holding the land while signing the contract. In case of sharecropping, the overall end products are shared between the landholders and cultivators.
The small and marginal farmers are always under the debt burden due to the rent that has to paid on a mandatory basis to the large landlords. The landlords take the advantage of this situation and accordingly try to attain higher incomes by means of high rents. This way, the rental feudalism helps the landlords to acquire more power, prestige and dominance over the tenants and farmers of the land. This precarious condition impels the farmers to be loyal to their landlords.
Due to the arrival of green revolution, the rental feudalism started disintegrating and eventually the tenants began to cultivate the land on their own and eventually the agrarian system became more stable.