Landlords could be fined for making up a "non-genuine reason" for punting a tenant under NSW laws to scrap no-grounds evictions.
Premier Chris Minns told Sunday's NSW Labor conference in Sydney his government was aiming to introduce legislation to end the practice in September, making good on a 2023 election promise.
Under the proposed reforms, homeowners would need valid reasons to end tenancies for both periodic and fixed-term leases.
These would include existing rules for breach of lease, damage to a 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 the market was the toughest in decades and suggested the reforms would give both homeowners and tenants more certainty.
"There will still be reasonable grounds to end a tenancy ... it just can’t just be to put up the rent," he told party faithful.
"Something has to change - we are losing twice as many young people as we are taking in - and the next generation feel locked out of the place they were brought up.
"Young people are fleeing our cities and towns and moving to cheaper places, not even to regional NSW, which we know is very expensive as well, but moving to other states."
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.
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.
Committee for Sydney chief executive Eamon Waterford said the no-grounds evictions ban could be the single most effective action the government takes to address the housing crisis.
"Unfair rental laws are not only hurting people’s wellbeing, they’re slowing the state's productivity," he said.
Mr Waterford is scheduled to appear before a parliamentary inquiry into no-grounds evictions on Monday along with more than 20 others representing tenant advocacy groups, women's shelter organisations and social services groups.
Greens MP Jenny Leong, chairing the inquiry, welcomed the government's announcement but said tens of thousands of people had been evicted in the time it had taken for movement on a pre-election commitment.
“We are thrilled Labor has finally got their act together and is moving forward," she said.
"It has taken a Greens bill coupled with the threat of a lashing from the experts in this inquiry to force Labor to finally act on their long-overdue promise."
