Police say nearly 500 people went to the well-known party house on June 25.
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Video taken by fed up neighbors shows the crowd dancing in front of police and not obeying commands.
The party got so out of hand that the LAPD had to disperse the crowd in a scene that startled neighbors, who say they think the party was promoted on social media.
"Basically, the whole neighborhood was shut down and it was very frightening to see 20 police in riot gear in our quiet neighborhood," said Tony Lucente.
Another neighbor, Tina, said she spoke with some of the partygoers, who were not too sympathetic to the neighbors' complaints.
"One of 'em said, 'Hey look, we're young were just trying to have fun,' and people said, 'Oh, are you sleepy, would you like to be sleeping?' And, yes, I'd like to be sleeping, could you please go home this is not appropriate," she said.
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And the man whose backyard connects to the party house said his home was damaged due to the mayhem.
"Every time there's a party, people throw trash into our yard, up our driveway. You know, we don't feel safe," said David Luner.
Studio City has a home-sharing ordinance that allows short-term rentals, but not to groups as big as the one that descended onto the party house last week.
Now, the neighbors are working together to get the house shut down.
"This is an alert that we put out to 500 neighbors in our neighborhood telling people what to do and who to call," said Lucente.
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In a statement to Eyewitness News, L.A. City Councilman Paul Krekorian said:
"An incident like the one that occurred last week on Valley Spring Lane is an outrage. While this office cannot comment on specific details of an open investigation, we are following up with the City Attorney's office and I can assure our neighbors that the law will be enforced, and violators will be held accountable."
Eyewitness News reached out to the owner of the home and he declined to be interviewed for this story.