Since institutional owners like this make up a tiny percentage of ownership, your solution would have a huge impact on small landlords, which would be passed along to the tenants.
Basically you're asking renters to pay for this behavior...
"A" government[1] could telegraph that major (as major as is necessary) policy changes are coming that will affect SFH investors in a detrimental way, and that it would be in their best interests to prepare accordingly.
If this does not happen, I suspect Mother Nature will eventually intervene, and that usually doesn't go well for anyone.
[1] I do not presume that any arbitrary Western government is actually capable of this in the real world as it relies on many prerequisites, some of them policy, some of them psychological/ethical.
Basically you're asking renters to pay for this behavior...