Landlords could be fined for making up a "non-genuine reason" for punting a tenant under NSW laws to scrap no-grounds evictions.
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Premier Chris Minns says his government is aiming to introduce legislation to end the practice in September, making good on a 2023 state election promise.
Under the proposed reforms, homeowners will need a reason to end a tenancy for both periodic and fixed-term leases.
Some of those include existing rules for breach of lease, damage to the property or non-payment of rent.
Other eviction reasons would include a property being being sold or offered for sale with vacant possession, a property requiring significant repairs, renovations or demolition, or a property no longer being used as a rental.
A homeowner would not be able to re-list a property for at least four weeks should the eviction be sought on renovation or repair grounds.
Landlords could also kick out renters if they're were no longer eligible for an affordable housing program or if the property was purpose-built student accommodation and the renter was no longer a student.
The owner would need to supply evidence with a termination notice, with penalties payable by homeowners providing non-genuine reasons.
The changes would bring NSW into line with other states, including the ACT, South Australia and Victoria.
With about a third of NSW's eight million-plus residents renting, Mr Minns said on Sunday that the market was the toughest in decades and suggested the reforms would give both homeowners and tenants more certainty.
"Bad tenants will still be able to be evicted," he said in a statement.
"We don't want homeowners to have to put up with bad behaviour.
"But anyone who rents in NSW knows just how anxious and challenging renting can be at the moment.
"We've all seen the lines on a Saturday morning with hundreds of people waiting to inspect new properties."
Under the legislation, the termination notice period for fixed-term agreements of less than six months would be lifted from 30 to 60 days and from 60 to 90 days for those more than six months.
Notice periods for periodic agreements would remain unchanged.
Committee for Sydney chief executive Eamon Waterford said the no-grounds evictions ban could be the single most effective action the government takes this term to address the housing crisis.
"Our research shows less than half of all children born today will ever own a home in Sydney - by the time they retire, most will have rented their whole lives," he said.
"Unfair rental laws are not only hurting people's wellbeing, they're slowing the state's productivity."
Housing Now! Chair David Borger said the reforms would help ensure renters who follow the rules and take care of their homes can live without the fear of sudden eviction.
"By aligning with other states that have already implemented similar laws, NSW is setting a new standard for renter protections," he said.
Australian Associated Press
