Dilemma - Pursue or Write Off - evicted tenants debt

[Saul L.]

Thought I would throw this one out to the wisdom of the masses of the good people here on BP, and see if it can help me come to a decision.

I won't bore you with all the details of a mismanaged property and non paying tenant that eventually had to be evicted, as I am sure most of you have heard it all before - especially with the properties in Detroit.

I now know that the tenant was living solely off social security with a total income of $2360 per month, and probably couldn't afford the property from day one anyway - (rental was 800 pm). The original PM (now fired) didn't take a security deposit from them and with all expenses, water and electrical bills etc. they have left me with an outstanding debt of around 2200$. I am at significant loss on this investment , and haven't been able to get it properly cash flowing since I bought it in Dec 2014.

I have approached them and attempted to negotiate a payment plan, but got the royal FU.

They are a family of 5, she claims to have major health problems, surgery etc, claims to be homeless as a result of the eviction etc.- difficult for me to assess the accuracy of these claims.

My dilemma is obvious and I am sure many of you have faced similar:

1. Do I pursue this debt to the fullest extent I can, possibly recouping some of my losses - Small Claims Court or Collection agencies.

OR

2. Do I write this off as the cost of doing business, and move on ?

The things I am considering:

In favor of Option 1:

The principle - I hate the mind set of people who don't take responsibility , believe they deserve to get everything for free, live in your property for months without paying rent or bills, and won't even discuss settling a debt. If you can't afford a commitment don't take it on - and if you did, bear the consequence.

In favor of Option 2:

I may not ever see 1 cent as I am not certain that they are collectible even if I do get a ruling in small claims - as a result if I sue I will just have incurred further costs with no result.

In the process I may be creating a lot of additional hardship for an already destitute family ( I don't want to say taking food from the children's mouth ). In another context if this family had approached me for charity, I would probably have considered helping them out.

What would you do -Option 1 or 2 (or something else) ?

All opinions or suggestions welcome.

[Steve Babiak]

Social Security cannot be garnished, so they are not only uncollectable, but you couldn't be taking any money from her and I doubt you would be paid by her willingly (so you're not taking food off their table).