What are my best options to collect?

[Allen Salman]

Hello everyone! First time posting. A former tenant owes about $4700 in damages beyond her security deposit. After the third notice, the tenant contacted me suggesting monthly payments. But she is suggesting very low payments ($100/month max.) that will take about 4 years to repay assuming no skipping and she will follow through.

First question, can I charge her interest on the outstanding balance and fee for late/delinquent payment? If yes, how much?

The property is located in Cowlitz County WA and the tenant was on section 8. Currently, she moved to another state (NV).

What is the best & cost effective way to collect my money? I’m thinking of these options: 

1- Small claims court (knowing that the tenant moved to NV) 

2- Collection agency 

3- Go with low monthly payments and take the risk. Does it help if the tenant is on section 8?

Any ideas/advice?

Thanks!