Airbnb hosts could be slapped with a 'nuisance tax' and be forced to pay compensation to neighbours who complain about unruly guests

Building manager of Watergate Apartments (pictured) Marshall Delves said the building, dubbed as 'Partygate', was 'out of control' with parties and drug dealers using short-stays to facilitate their distribution

Building manager of Watergate Apartments (pictured) Marshall Delves said the building, dubbed as 'Partygate', was 'out of control' with parties and drug dealers using short-stays to facilitate their distribution

Airbnb hosts who rent out their homes to rowdy guests may have to pay their neighbours compensation under a proposed state government plan.

The extra fee is one of several proposals aimed at managing the short-term rental market being considered by the NSW government this week, according to The Daily Telegraph