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Tenants ask Supreme Court to delay their eviction from Mount Martha rental

Defiant tenants advertised their Mornington Peninsula rental online for $19,000 summer stays before asking the Supreme Court to delay their eviction.

The luxury Mount Martha home is being advertised as South Beach Beauty on short stay accommodation websites. Picture: supplied
The luxury Mount Martha home is being advertised as South Beach Beauty on short stay accommodation websites. Picture: supplied

Tenants busted pimping out a luxury Mornington Peninsula rental sought to ignore

orders restraining them from offering short stay accomodation, instead advertising the pricey pad on Airbnb for as much as $19,000 for a summer stay.

Michael Atwell and Nadia Armstrong continued inviting bookings for a Mount Martha rental for up to six months after the owners of the Kilburn Grove property told them to stop, a court has heard.

Screenshots of an Airbnb listing offering the entire house for six weeks from December 2 to

January 16. 2026, were on Friday used in the Supreme Court to argue against a bid by the

renters to stay a Victorian Civil and Administrative Tribunal order to vacate the property pending an application for leave to appeal the decision.

VCAT issued the order on September 25, giving the renters - who argued they needed to stay in the property so they could continue riding their jet skis and spear fishing - just five days to move out.

The barrister appearing for property owners Rosemary Scully and Ian Rolland said it was “comical” to suggest their clients were being unreasonable by refusing to allow

their fully-furnished house to be made available “to the world at large”.

John Oswald-Jacobs, of Mornington Peninsula Chambers, said the tenants had breached their rental agreement, which clearly stated they could not allow any short term or long term letting or occupation of any part of the premises without the prior consent, in writing, from the rental provider.

“By entering into Airbnb arrangements with unruly customers, the renters also caused nuisance to neighbours... (another) breach of the residential tenancy agreement,” Mr Oswald-Jacobs said.

Renters continued advertising the house on platforms including booking.com after being told to stop by the property owners. Picture: supplied
Renters continued advertising the house on platforms including booking.com after being told to stop by the property owners. Picture: supplied

James Gray, who acted for the tenants, argued a VCAT order giving his clients just five days to vacate the property, would cause “serious damage” to the couple by making them homeless.

He said a move would be particularly challenging for Ms Armstrong who suffered from hyperthyroidism and needed “stability”.

He told the court the couple’s appeal prospects were “very high” and the landlords, who he believed were overseas, would not be penalised by a stay order because the monthly rent of $5193 would still be paid.

However, Ms Lorenz said the property owners first issued Mr Gray’s clients with a notice to vacate on May 5, with a termination date of May 20.

She said there had been “ample time for the applicants to find alternative accommodation”.

There was no evidence presented to the court demonstrating Ms Armstrong’s medical condition.

Ms Lorenz said the screenshots, which were “obtained today” were not conclusive, but she was not satisfied the tenants had stopped advertising the premises as an Airbnb rental.

She awarded costs to Ms Scully and Mr Rolland whose legal team will be claiming $6600.

Rubbish on the nature strip outside a Mount Martha house at the centre of a battle over tenants using the Kilburn Grove property as an Airbnb. Picture: Lucy Callander
Rubbish on the nature strip outside a Mount Martha house at the centre of a battle over tenants using the Kilburn Grove property as an Airbnb. Picture: Lucy Callander

Mr Atwell and Ms Armstrong are still able to lodge an application seeking leave from the Supreme Court to appeal the VCAT decision.

However, Friday’s loss means the property owners can now secure a warrant to have the police remove the tenants.

When the Herald Sun visited the house on Monday it appeared to be vacant.

Vehicles and a boat previously parked on the property had been removed and a pile of rubbish, including an outdoor heater and table, left on the nature strip.

Kilburn Grove residents said the renters had moved out over the weekend.

Original URL: https://www.heraldsun.com.au/leader/south-east/tenants-ask-supreme-court-to-delay-their-eviction-from-mount-martha-rental/news-story/5b397b70931c9dfedbc2ac6345b4920f