A new report from RMIT University urban policy experts recommends using Australia's tax system to force investors to improve conditions for private renters.
The reforms would see negative gearing only available to investors whose properties meet national standards for fair rental contracts and construction quality.
Benefits for investors who opt-in would also include discounted capital gains tax, while renters stand to get a better deal with more energy efficient homes.
Co-author Professor Jago Dodson said tax breaks were a "good carrot" for property investors to make things better for their tenants.
"There's an opportunity to use negative gearing and capital gains tax to make things better for renters, without relying on negotiation with the states," he said.
"It doesn't require dramatic reform, just some tweaks to our tax laws.
"According to our proposal, investors would still get their tax benefits but only if they make positive changes for renters."
Proposed improvements include having dwellings meet a seven-star energy rating, with heating, cooling and insulation among the requirements.
Currently only required for new builds, the report recommends expanding the seven-star rating to existing rentals, with investors given tax credits in return for making improvements.
Along with physical improvements would be minimum quality, safety and security standards covering things such as minimum lease periods and rent increase limits.
The reforms would also make the standards national, leading to consistency for renters and investors alike.
Co-author Dr Liam Davies from the RMIT Centre for Urban Research said the reforms will mean better outcomes for renters across Australia.
"Renters will get a better deal out of this, regardless of which state they live in," he said.
"By cutting out the states, the federal government can deliver these improvements quicker and easier.
"Being an opt-in scheme, it will free up money that can be reinvested into areas such as public housing."
Download the report, Establishing a National Rental Regulation System for Australia: Making landlord tax concessions work harder for low-income tenant social outcomes, by Jago Dodson and Liam Davies.
