Neighbours of a luxury beachfront mansion-turned party house in Adelaide's south say they are at tipping point after three cars were set on fire outside the property on Sunday morning.

Key points: Neighbours of a luxury beachfront mansion-turned party house in Adelaide's south say they are at tipping point

Neighbours of a luxury beachfront mansion-turned party house in Adelaide's south say they are at tipping point Property manager said guests lied to them

Property manager said guests lied to them Resident group We Live Here are lobbying for change

After putting up with weekly events at the Moana rental, residents were woken by an explosion at 5:00am, after 48 hours of partying at the house.

While police said they were investigating the suspected arson attack, neighbours are more concerned with the ongoing drama unfolding on their street each week.

So what can you do if you find your house next to a party rental?

Here's a look.

What's been happening at the Moana house?

One neighbour — who asked not to be named — told the ABC that sex workers and parties at the house were a regular occurrence, as was people running down the street naked and vomit and urine appearing on their properties.

"If this happened in the Hyatt or the Hilton, you'd get chucked out," he said.

"There was a naked man standing on the roof of the ute before it got burned.

"I'm sick of having naked women visible on the balcony when you're trying to take your kids for a walk on a weekend."

Neighbours say they have raised concerns about the mansion — which is listed for rental on multiple accommodation sites for more than $2,000 a night — with the property owner, the Onkaparinga Council, police and local MP Chris Picton.

The four-bedroom, seven-bathroom luxury property "Luxe Haus" is described on accommodation sharing sites as a "premier accommodation experience in Adelaide, for those who are looking for a tranquil, private getaway for their family or friends".

The $2000 a night four-bedroom rental has a 20-person heated spa and ocean views ( Source: Luxe Haus )

House renting platforms on the rise

Data from independent monitoring website Inside Airbnb states the number of listings in Australia surged by 87 per cent in the past year, with more than 12,474 entire homes available for booking in Melbourne and 32,830 listings in Sydney.

Airbnb offers a complaint section for neighbours, notifying the property owner to "provide suggestions to help avoid similar issues in the future".

But angry residents have been asking for further protections, saying the rising popularity and ease of renting out rooms or properties on sharing platforms such as Airbnb and Booking.com can play havoc for neighbours.

One of the bedrooms in the Luxe Haus mansion in Moana ( Source: Luxe Haus )

So, what can you do if you live next to a party house?

Resident lobby group We Live Here said while it was trying to pressure state governments to better regulate the property share economy, individuals could do "nothing" to stop the problem.

State governments and local councils have struggled to keep pace with the rapidly evolving share economy, with most councils and governments yet to settle on a framework to manage sites such as Airbnb.

We Live Here spokesman Marshall Delves said that in practice there were no protections for neighbours who have to live with noisy party houses and disruptive rentals.

"We have been all the way through to the Supreme Court in Victoria and there's nothing you can do," he said.

"We've been fighting this for five years, and there is absolutely nothing you can do about it.

"We represent 200 buildings in Victoria and the stories we're hearing are absolutely horrific."

Some states looking at regulating rentals

The NSW and Victorian Governments are looking at regulations and laws for short-term accommodation and building use.

University of Technology Sydney senior tourism lecturer David Bierman said many places in the world had experienced problems with share accommodation, with Airbnb banned in Barcelona.

"In fairness, Airbnb is trying very had to address the problems," Dr Bierman said.

"Generally speaking, Airbnb clientele don't cause trouble and the reason why more outlandish things get attention is because they are out of the ordinary."

He said there was some recourse for neighbours, through strata restrictions.

For those who don't fall under strata titles, local councils can use regulations and restraints that could be placed on property owners.

The Onkaparinga council, which covers the Moana house, said it had been in contact with the owners about the situation.

But it said there was currently no local or state law giving the council the authority to prevent parties at the house.

"Council is reviewing the conditions of approval to determine if there is any legal avenue to ensure there is no unreasonable nuisance occurring," a spokesperson said.

Moana property owner said they were misled by renters

The property manager for Luxe Haus — who also asked not to be named — told the ABC the property had been rented to a group of males who planned to surprise their partners with a limo and a weekend of wine tasting in McLaren Vale.

"The gentleman who hired the property told me that they were going to go wine tasting and it was a surprise for their partners," she said.

"Obviously that wasn't correct.

"It's got nothing to do with the house and the owners."

She said she was liaising with police about the events over the weekend but that she'd never had previous dealings with the neighbours about noise complaints.

Airbnb has been contacted for comment.