Or if they seem tied on the financial side and had equal ability to pay, I would also make sure to check how they did on following rules, excessive wear and tear, noise, unauthorized occupants/pets, etc.

From AG officeYou cannot be directly charged for your use of any utility unless there is individual metering by a utility company, and your occupancy agreement provides for such a charge. 940 C.M.R. 10.05(4)(b)(3) and 10.05(4)(e).

I have friends in Draper who have close to 100% occupancy most of the year and have had no trouble from the city.

Rental Agent shall use its best efforts to ensure the operation of all amenities in the Property, such as internet access, satellite or cable TV access or fireplaces as applicable.Rental Agent shall not be held responsible for such items failure to work, but will make every effort to correct any issues as reported as quickly as possible.Guest acknowledges that use of amenities such as fireplaces, lake, dock, decks, and the like may be potentially dangerous and involve potential risks if improperly used, particularly with regard to children and such use is at the Guest’s own risk.Guest shall use the Property for residential purposes only and in a careful manner to prevent any damage or loss to the Property and keep the Property in clean and sanitary condition at all times.Guest and any additional permitted guests shall refrain from loud noise (especially after 10PM) and shall not disturb, annoy, endanger, or inconvenience neighbors, nor shall Guest use the Property for any immoral, offensive or unlawful purposes, nor violate any law, association rules or ordinance, nor commit waste or nuisance on or about the Property.DEFAULTIf Guest should fail to comply with the conditions and obligations of this Agreement, Guest shall surrender the Property, remove all Guest’s property and belongings and leave the Property in good order and free of damage.No refund of any portion of the Total Rental Fee shall be made and if any legal action is necessary, the prevailing party shall be entitled to reimbursement from the other party for all costs incurred.ASSIGNMENT OR SUBLEASEGuest shall not assign or sublease the Property or permit the use of any portion of the Property by other persons who are not family members or guests of the Guest and included within the number of and as permitted occupants under this Agreement.

our occupancy rate is 70%.

You should probably find out the rental rates for similar properties, occupancy\vacancy rates to determine if its going to have a positive cash flow.  

Then you come in with a script something like this while you are still on the phone with them (or maybe during a second phone call).Script:  Ah, Judy, it sounds like you have a wonderful house, and from what you've told me, it probably would be worth $xxx,xxx to an owner-occupant or a nice family (usually this will be the amount that they have told you that they want for it, and you will already be getting this info anyway).  

Do you intentionally limit your occupancy rate to stay under the radar?

We were able to maintain over 80% occupancy and a very competitive rate throughout the Summer.

Hi Alessandro,In Los Angeles, Airbnb automatically collects the Transient Occupancy tax and remits it to the correct authorities for you.