I've had a Melaleuca tree in my garden for a couple of years, and it's been a great addition! They generally prefer well-draining soil and plenty of sunlight, which helps them stay healthy and resist most pests. I've found that regular pruning can help maintain a manageable size and promote a more attractive shape, especially if space is a concern. For residential gardens, Melaleuca alternifolia (tea tree) is a great choice due to its more compact size compared to some of the larger varieties.
In terms of challenges, I haven't faced many, but it's important to watch out for waterlogged soil as this can lead to root rot. As with any tree, keeping an eye out for pest issues is wise, but mine has been pretty trouble-free.
What kind of conditions do you have in your garden, and how does the space look? It might help determine the best species choice for you!