A Melbourne family's property investment dream has turned into a financial nightmare after their £1.2 million home became an uncontrollable party house through Airbnb, forcing them to sell the problematic asset.
The £1.2 Million Gamble Gone Wrong
Nina and her family purchased the four-bedroom Edwardian property in Melbourne's prestigious inner-north as a long-term investment, only to see it transform into what neighbours describe as a "continuous party venue" under Airbnb management.
The situation deteriorated so severely that the family has now listed the property for sale, potentially facing significant financial losses on their substantial investment.
Neighbourhood Chaos and Community Outrage
Local residents reported constant disturbances including:
- Loud parties continuing until 4 AM
- Groups of up to 15 people drinking in the front yard
- Public urination and inappropriate behaviour
- Significant noise pollution affecting surrounding homes
One neighbour expressed frustration, stating they'd witnessed "drunken people out the front at all hours" and numerous complaints to authorities.
Management Company Under Fire
The property was managed by Airbnb management company Hometime, which promised the owners professional oversight and premium returns. Instead, the family discovered their investment was being marketed as party-friendly accommodation despite explicit instructions against this use.
Shockingly, the listing promoted the property as ideal for "bigger groups" with capacity for eight guests, directly contradicting the owners' requirements and local regulations.
Regulatory Failure and Owner Responsibility
Despite Melbourne's short-stay accommodation regulations requiring owners to prevent disruptive behaviour, the system proved ineffective. The City of Melbourne received multiple complaints but the parties continued unabated.
The case highlights the growing tension between property investors seeking rental income and communities suffering from poorly managed short-term rentals.
Financial Consequences and Market Impact
With the property now on the market, the family faces potential substantial losses on their £1.2 million investment. The situation serves as a cautionary tale for property investors considering short-term rental strategies without adequate oversight and management controls.
As one industry expert noted, "This case demonstrates the critical importance of thorough due diligence when selecting property management services, particularly in the volatile short-term rental market."
