Residents in Sunshine Bay and Fernhill say hundreds of visitors are being ferried to "over-used" short-term accommodation.
Heidi Ross lives on Moss Lane, Sunshine Bay, next door to two registered short-term holiday homes marketed as Gemini Lake View Villa.
Queenstown Lakes District Council rules limit the number of guest nights to 90-a-year per property without resource consent.
''There's no way they're only being used for 90 days,'' Ms Ross said.
''Busloads of people are dropped off all the time - I've been keeping a record.''
Ms Ross said she regularly finds groups of visitors from the $600-a-night-plus properties milling around on her lawn and driveway.
She has been complaining to the QLDC for months and has been keeping a record of guest numbers.
But property manager Min Yang labels Ms Ross a ''nitpicker''.
''She complains about everything, and we've made lots of changes she has asked for,'' Mr Yang said.
''There is nothing we can do. They have not been used for more than 90 days.''
Mr Yang applied for visitor accommodation consent, which allows visitors to stay year-round. But he has postponed the application because, with Ms Ross' objection, it has to be publicly notified.
Mr Yang: ''The council lady said it would cost $20,000, so we'll keep it at 90 days.
''We are just starting out as a business and Queenstown is very expensive.''
The council has issued an abatement notice on the properties, enforcing the 90-day rule.
Artist Sue Wademan lives next door to an $800-a-night-plus property managed by Mr Yang on Wynyard Crescent, Fernhill, known as DH Lake View Villa.
Mrs Wademan is also counting the days the property is used.
''But it's our word against theirs so what can you do - take a picture every day?''
She said it affects their quality of life.
Mr Yang said Queenstown needs Bed & Breakfast accommodation.
''Due to the high price of Queenstown hotels in last year, the visitors from China dropped in the middle of this year,'' he said.
''Some choose to stay in another town. Visitors need some affordable sleeping place.
''As a B&B operator, we need to keep improving the experiences the neighbour and our visitors.
''It's not hard to achieve unless the neighbour is a nitpicker.''
Ms Ross says Mr Yang offered to buy her property for $900,000 but she turned him down. Mr Yang said the property is not worth that much but if the owner wants to sell it is good for both parties.
QLDC Resource Consents Manager Quinn McIntyre said the council is in the process of developing a position on the management of visitor accommodation for the next phase of the Proposed District Plan.
It will look at issues ''including the need to acknowledge the differences between commercial, small-scale and part-time visitor accommodation''.
Applications for visitor accommodation - anything over 90 days - are dealt with on a case-by-case basis.
They require a management plan and must pay up to 50 per cent more rates.
''Factors considered include maximum guest numbers per room, parking provision, night-time arrangements such as outdoor exclusion areas, and the nomination of contacts for neighbours to call in the event of an incident,'' Mr McIntyre said.
Owners who do not comply with the rules can be fined up to $750 a day.
