Deeper Dive into Rental Demand:Here are a few alternative ways to gauge rental demand:Local Property Managers: Reach out to property managers in the area for insights on vacancy rates, tenant demand, and how long it typically takes to rent similar properties.Vacancy Rates: Research the average vacancy rates in that zipcode through local real estate reports or rental listing platforms like Zumper or Rentometer.Rent Growth Trends: Check whether rents have been rising, stagnating, or falling in that market over the past few years.

Not a collection agency, but have you considered using a rent reporting company to report the debt directly onto their credit reports with the Credit Bureaus? 

If your short term rental is advertised on a platform not doing this, then the operator must continue to report and pay HOT directly to the city every month.

How those people should be prepared to report loss on tax return?

2) Should I have a home inspector take a look at the home to see everything in the home that may have been affected that an adjuster may overlook, or that I may not report because I don't see it?

@Daisy HawkinsLLCs in California are required to report either the member or manager name to the publicly-filed Secretary of State records anyway, so anonymity is very hard in the first place in CA, even if using an LLC. 

Content Marketing: Produce valuable content such as blog posts, market reports, or video tours to establish yourself as a thought leader in the industry.

Biggest things are to make sure you get a very thorough inspection report and make sure you have very reliable contractors.

Look up local reports or chat with property managers to get the scoop.Watch the Economy:Job Growth: A booming job scene usually means more demand for rentals.

Go talk to the the current PM....ask them about property performance, asked about rent bumps on upgraded units, ask about the competition and go visit.