Normally, they negotiate with the company and advise you on the loss. 

.- Rental loss - PadSplit claims they collect 97% of rents, but I've spoken to a few hosts who have said that a much larger % of their tenants get kicked out owing $500 or more in back rent that is rarely ever collected - what's your experience been here?

Good to hear... i'm factoring in an 8% vacancy rate in my per forma, hopefully will accommodate any loss expected .

I wish I had that in my first years and I am sure I would have avoided some pain and loss. 

What actions and/or credentials make a landlord an active property manager to deem rental income/loss active in CA?

For example I hold the core of my real estate holdings without debt (because I'm a conservative investor and I'm more concerned about preventing a loss of money than I am with attempting to maximize potential return).

As for heat loss along the way why does it matter?

Most of my clients run their SFRs at a 25%-30% (excluding vacancy/credit loss) operating expense margin and most of the banks I deal with on their DSCR loans underwrite using 35%.

If you’re okay with moderate negative cash flow as a "forced savings plan," that’s fine, but I’d advise setting clear boundaries on how much loss you’re comfortable with per year.

Quote from @Patricia Andriolo-Bull: Quote from @Henry Clark: Start Defamation of character lawsuit also loss of income.