The NSW government wants reforms to the state's overheated rental market legislated by the end of the year as part of a system "rebalance" opposed by the peak body for real estate agents.
A government discussion paper released on Friday proposes revamps beyond previously promised rental reforms to end no-grounds evictions, allow more pets in rentals and introduce a portable bond scheme.
The measures include a public database of rent increases, closing a loophole allowing multiple rent hikes a year and mandating a free way to pay online.
It comes amid a sustained rental squeeze that has pushed the median Sydney unit rental price to $670 a week.
About one-third of people in NSW are renters.
Better Regulation Minister Anoulack Chanthivong said the new proposals were part of a model that would prevent "excessive" rental price increases.
"This is significant reform and that's why we want to work constructively with both renters' advocates and property advocates to ensure we can get the balance right," Mr Chanthivong told reporters.
"These reforms are about providing greater certainty and clarity for people in the rental market."
Public consultation will run until August 11, with the government confident it can pass reforms through parliament by year's end.
Without opposition backing, the Labor government needs support from at least two crossbenchers and six in the upper house to pass legislation.
According to the discussion paper, cracking down on "excessive" increases could mean the government collects rent-rise data and makes it publicly available by requiring landlords or their agents to report rent increases, or gathers rental information voluntarily.
Such transparency would help renters understand "what is the standard rental price or what is totally excessive", the minister said.
Another rental affordability measure could be achieved by requiring a landlord to prove a rent increase was not excessive where, for example, it exceeds inflation across a certain period, the discussion paper says.
In the meantime, the government's previously promised measures, such as a portable bond scheme, were moves to "take the heat" out of financial pressures on renters, Mr Chanthivong said.
In June, the government was forced to ditch one of its promised rental reforms - banning secret rent bidding - after landlord and tenant advocates warned it could worsen market conditions.
However, laws to allow tenants to transfer bonds from one property to another and a ban on real estate agents and landlords soliciting rent bidding passed the parliament.
Mr Chanthivong said while the long-term solution to putting downward pressure on rents was to boost housing supply, "that shouldn't stop us from delaying on implementing rental reform".
The Real Estate Institute of NSW, representing real estate agents, said the proposals targeted landlords and would have "the unambiguous impact of reducing rental supply".
"Much as politicians attempt to portray it otherwise, people don’t invest in property to provide community housing. That's government’s job," the group's CEO Tim McKibbin said in a statement.
The Greens, who have urged an immediate rent freeze, said any crackdown on excessive rent hikes needed to include a clear cap on increases.
Greens renters' rights spokeswoman Jenny Leong said tenants were "ready to fight the powerful real estate and developer lobby that will no doubt be ready to stop reforms from undermining their profits".
Liberal opposition fair trading spokesman Tim James was contacted for comment.
