Short-term rental accommodation hosts, guests, letting agents and online booking platform operators will soon be subject to strict new laws in NSW, with a mandatory code of conduct from December.

Better Regulation Minister Kevin Anderson says the new code clarifies the obligations of hosts and guests and stipulates minimum standards of behaviour.

Also included are formal avenues for complaints and dispute resolution and the ability for NSW Fair Trading to ban problematic hosts or anti-social guests from booking short-term rentals for five years.

"The popularity of short-term rentals has exploded in recent years and is now a $30 billion a year industry," Mr Anderson said on Tuesday.

However, the sector needed a clear set of rules to protect the rights of both hosts, guests and neighbours, he said.

The laws were part of a broad reform of the sector to crack down on the minority of guests who were giving the sector a bad name.

"We have all heard the horror stories of hosts doing the wrong thing or the house guests from hell behaving disgracefully in holiday rentals," Mr Anderson said.

"If you are going to carry on like that in someone else's house or neighbourhood, be warned - under these new rules you will be banned, and for a very long time."

The standards will be enforced by the NSW Fair Trading Commissioner who can take disciplinary action, including penalties and exclusion from the industry for repeat offenders.

Australian Associated Press