A man who calls himself Al Cameno said he rushed to the property when he heard what had happened.
He described the scene he encountered as "something out of a horror movie". He said he saw blood in the room where the bodies lay.
"Flies were buzzing around the windows," he said.
"My biggest fears come true."
Cameno also filmed the interior of the property and posted it on Facebook.
Missing for a week
Tania Ellwood had been missing for more than a week after last being seen in Newmarket.
An appeal made by her sister on Facebook on Tuesday urged anyone who had seen the 39-year-old to get in touch.
"She lives around Dominion Road, Sandringham/Mt Eden area and made her way back there that evening as per her last text at 6pm," the post read.
Sections of the lodge were cordoned off this afternoon as police continued to conduct forensic tests.
Residents walking the halls inside who spoke to the Herald said they didn't recognise Ellwood when shown a picture.
A faint stench originating from the lodge's shared bathrooms wafted through the pink and white halls today, and most doors were firmly closed.
A reception was unmanned and police investigations were focused on a section on the bottom floor of the property.
One man, who didn't want to be named, told the Herald he understood one of the deceased was a female who had been visiting another resident in the lodge.
Police were called to the lodge, which operates as a halfway house for many tenants with drug and alcohol problems, at 3.15pm on Tuesday.
Upon arrival, police found two people dead. Detectives are now working to establish what happened.
Senior Sergeant Glenn Baldwin said police were not looking for anyone in relation to the two deaths.
Resident James Davidson told the Herald yesterday he had awoken from a nap to find police everywhere.
He didn't know the people who had died but said a lot of the lodge residents had alcohol and drug issues.
A room at the lodge costs between $200 and $400 a week, Davidson said.
Ellwood is listed on StarNow as being an actor, hair stylist, makeup artist and fashion stylist.
She had a brief stint on Shortland Street where she played a character called Mandy Timmins in 2006.