Tenant fined by HOA for repeat parking violations

[Jack B.]

Summary: Tenant violates HOA rules repeatedly and get's fined. Now denies it. I've asked for payment but they want evidence of the violation (that they previously always admitted to). Stopped talking to them at that point and figure making about 60K off the house between appreciation and cash flow I don't want to push the tenant too much while living there and will just take out of their deposit when they move out. Not worth the thousands I'd lose having a vacancy if they left over the $200, though they have a dog and a bankruptcy thus a hard time finding a place to live, so unlikely.

Details:

Mind you, I lived in this house for 2 years myself and only ever got one notice a year to weed my flower beds, just like everyone else did.

For the past 8 months, I've received an HOA parking or other violation every other month on these people. They've had multiple parking violations for two vehicles, never denied it, accepted it actually until they got a fine for $200 from the HOA (I received the fine). Now they are asking if they got the license plate (they did - it's in the notice I sent the tenant...twice...first of which about the fine was ignored). Now that I've followed up they are asking for proof including pictures. I stopped responding to the texts at that point. I've driven by the place before and seen some of the violations the HOA writes about (other than parking) and didn't say anything until the HOA did. At this point, I believe the HOA and have already paid the fine. I don't want to push the issue too much, opting instead to just take it out of the deposit when they move out if they don't pay. Why?

Because the tenant seems to take care of the house, I did inspection a few months ago and house was just like we left it not counting all their crap. House is going up 50K a year in value and I make about 10K off the rents and principle pay down. Vacancy and turnover cost money of course and I already have one other vacancy. Don't want to have what seems to be an otherwise good tenant move over a $200 fine, win the battle but lose the war so to speak, so I won't press the issue and will instead just take it out of their deposit when they move out. They are on a MTM lease and have a recent bankruptcy (real estate developer who lost it all in the crash) and dogs so it's hard for them to find a place to live. They've been cooperative in the past with HOA notices. I do also get occasional bills from the utility that they are two months behind, etc. Not a stellar tenant but even in this ritzy high income neighborhood where 95% of people are homeowners, people like this is what you end up with: they can't buy due to their credit so they rent.

They've paid rent late once to date and I enforced the $25 late fee. Again, it's been 8 months. Think I should just take it out of their deposit or are there bigger issues at play here with this tenant? Seems like the good tenants are extremely rare, there is a reason most of these people rent...chaos is their life. So what do you think, keep the tenant for now or?