Throwing out the baby with the bathwater is preventing people like OP from doing what he's doing just because some guests might be a nuisance. What about we fine the house owner over those guests instead?
One solution might be to pass the fine onto the renters, but that leads to another problem: "Quiet" renters would probably be more put off by the possibility of an extra surprise charge than "Party" renters. The latter category probably ignore the penalty clause when booking the apartment and then try to avoid paying the fine after the fact. So now your set of renters is mostly loud partiers and the problem is even worse.
This is tautologous. Either the owner does not cease to rent out his unit, in which case fines are a business expense, or he does. What sort of third option were you imagining might happen?