Ex Tenant Volunteers to pay damages - accept or sue?

[Stephen E.]

My now ex tenant, the one detailed in earlier posts concerning his drug dealing, has been in touch. I had written a demand letter for over $5k of damages to the unit, backing this up with invoices for painting and flooring. He has offered to pay the full amount in $500 monthly payments over the course of the next year. This is beneficial because as a drug dealer he has no conventional employment or pay cheque that could be garnished, nor does his income run through a bank account that could be garnished. 

He is likely to go to prison for a year or so and this would interrupt payments. I have looked up the Limitations Act in Ontario and it appears that I have two years from the date of finding the damages to file suit in small claims court. The tenant is worried that having a judgment recorded against him from a property management business will show up on his credit report and deter landlords from renting to him. Hence his motivation to pay.

In the circumstances I have drafted an agreement for him to sign in which he agrees that he is liable for the full amount of damages and will make monthly payments as outlined. If these payments cease we will sue.

Can anyone see a downside to this arrangement? The way I see it at present I could get a judgment and it would be unenforceable due to lack of employment income or bank account with funds in to be garnished. If he keeps to the payment plan this is found money to offset damages. I can always sue later if he reneges on the agreement. Does anyone see a flaw in this arrangement or have advice?

Incidentally I read an article describing landlords' problems with tenants and it said most landlords will never encounter drug dealing or similar, but will encounter non payment of rent. I have never had arrears of rent with any of our tenants, but I have had a drug dealer. Perhaps we are due for a quieter time now.