Where I went to college had a similar law, no more than two of us could be on the lease or something like that. How do you expect two college students to live in a 4-bedroom house? Most landlords didn't follow it. There was a very vocal part of the community who hated the fact they lived in a college town (something they chose to do). The cops didn't help either. They would go around to "introduce themselves" to try to figure out how many people were living in each house. A thing our landlord warned us about.

Laws like this only divide the community unnecessarily.