Its my sim, my house, my business, I pay the bills and I decide who comes and who goes. We have clear rules, no mystery about that. Coming to my place, using my stuff (for free) is not a right, its a privilage. Most understand that perfectly, but not all.
We always warn if a rule is violated, at least once. If that does not help, off they go. A simple eject usually works, a ban is a last resort. Accidentally banning can happen if you click the wrong name, but that is corrected easily.
Its much like your rental house in RL, you decide who you invite. Imagine your landlord would penalize you for that....don't think that would stand up in any court. LL understands that perfectly.
Having said that, we always keep records who is banned and why.
And yes, sometimes I give someone a second chance if they are sincere and have a good story.
Been doing it like this for almost 5 years and it works perfectly.