The raucous house party on Merrill Ave. E. ended with a gunshot blast and the arrival of Toronto police, including tactical officers who trained their rifles on the two-storey, detached house.

Residents on the normally quiet street were stunned as more than two dozen partygoers spilled out the front door, where an armoured police vehicle had rolled up.

“It was chaotic, it was scary, it was difficult to understand what was happening,” recalled a neighbour, who asked not to be identified.

Officers using loud-hailers tried to control the crowd and ordered the owners outside. But the young, professional couple wasn’t home that mid-September evening.

They had rented their three-bedroom home on Airbnb, the popular, short-term rental website that purports to connect “people to unique travel experiences.”

Police that night arrested and laid numerous charges against six young men and a teenage girl after seizing three loaded handguns, a pellet gun and crack cocaine. All were from Toronto.

“There have been over 100 million guest arrivals in Airbnb listings and problems for hosts are incredibly rare, but when they happen, we try to help make things right,” Airbnb’s Nick Shapiro wrote in email.

“We have no tolerance for this type of behavior and we immediately banned this guest from the platform.” Airbnb is co-operating with the police, he added.

Critics say the incident is a cautionary tale that highlights the urgent need for regulations, something the City of Toronto is currently studying.

“This is a clear example of why we have to regulate short-term rentals, that there’s a risk involved, not only for hosts and guests, but more importantly, also to those around them who do not use the service or consent to it,” said Thorben Wieditz, spokesman for Fairbnb, a coalition that includes affordable housing advocates and representatives from labour unions and the regulated hotel industry.

It appears what happened on Merrill Ave. belongs to the “bait and switch” phenomenon, where the person who booked the place is someone other than the person — in this case people — who showed up, he said.

Wieditz said Toronto should restrict Airbnb rentals to people’s primary residence, “ideally ensuring that the host is present to ‘share’ their home. (This) eliminates a lot of the issues that arise from folks showing up and inviting their unregistered friends.”

He said Airbnb should also be forced to only legally post units that have received a permit number from the city — showing that it is a principle residence, that it is actually owned or that the host has the written consent from their landlord, “that it is safe, that it complies to all zoning, fire and building code requirements, that insurance and mortgage providers agree to the sublet.”

According to property records, Madison Dalzell and Jarred Hoo bought the Merrill Ave. house last January. The house then underwent extensive renovations.

Dalzell joined Airbnb in April, her profile says. In September, the house was listed on the website and guests invited to rent a “newly renovated modern home,” near the Danforth and Woodbine subway station.

“You’ll love your stay in the Upper Beaches surrounded by amazing restaurants and shopping and of course the beach.” The listing has been removed from the Airbnb website.

The partygoers left behind serious drywall damage, kicked-in doors and trashed furniture. This week, a contractor was working on the building’s exterior.

Hoo confirmed Wednesday his home was listed on Airbnb but declined to comment further. He wouldn’t say who the couple believed was renting their home, nor if they’re aware of the connection of the “guest” to the accused.

He also wouldn’t comment on whether Airbnb is honouring their “Host Guarantee” policy, which provides protection for up to $1 million to a host “for damages to covered property in the rare event of guest damages above the security deposit or if no security deposit is in place.”

“It would kind of be up to them (Airbnb) to comment on,” Hoo said.

In his email, Shapiro said Airbnb is “working to support the host under our $1 Million Host Guarantee by reimbursing her for damages, income loss, and alternative accommodations until repairs could be completed.”

Loading... Loading... Loading... Loading... Loading... Loading...

Airbnb uses sophisticated technologies and behavioural analysis techniques “to help prevent potentially troublesome hosts or guests from utilizing the platform in the first place,” Shapiro wrote.

The company also tries to “maximize transparency” by allowing hosts to require the guests provide government identification. Airbnb has also created a program, called Verified ID, which connects a person’s offline identification with another online profile to their Airbnb account, such as Facebook or LinkedIn account.

Faced with a critical shortage of affordable housing and soaring real estate prices, and concerns that Airbnb is removing much-needed supply, the city is studying a licensing system, updated zoning bylaws and additional tax requirements.