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In order to rent out a game you need to purchase a special rental copy usually directly from the publisher.  This rental copy is priced significantly higher than a retail copy as it comes with the license to rent it out.

The only problems publishers/developers face are:

1)  Rental stores that try to cheat the system by purchasing retail copies of games and renting those out.
2)  Users who make illegal copies of games during the rental period (albeit it's easier just to torrent something these days...).