Conflicted on sending tenant to collections

[Matthew Murray]

Hi,

I am at a crossroads with this tenant. Background is she’s about 4 months behind in total rent, original lease ended in December, now going month to month because I didn’t want to put her out as she’s a single mother with 3 kids (also didn’t have the bandwidth to go through the eviction process because this property is in another city)

I hired a property manager to help and we’ve recouped a bit of money but she’s still about 6500 owed. It’s at the point now where she is leaving but I am conflicted as to whether I send her to collections for the 6500. I know I will only recoup about 60% per my property managers collection agency.

Here’s my problem: everyone keeps telling me it’s business and I need to send her to collections, but I struggle with the idea of pinging her credit and her not being able to find a place to go for her children. I know it would make life even harder for her and even though she’s not paid me, she’s not a bad person and I know she’s trying her best.

Do I just cut ties and get her out to start fresh with a new paying tenant? Or should I try to get back what she owes me?

Thanks