HELP! Its complicated- Suing renter issue (details in the post)

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We had a renter who had to end her lease 1 month early. We thought that since she had always paid rent on time, that we trusted her and allowed her use her security deposit as last month's rent. 

I know- STUPID move on our part. 

However, when she moved out, she signed our agreement stating that she agreed to be financially responsible for any damages beyond normal wear-n-tear.

We inspected the unit and noticed damages of over $1,000.00. She also acknowledged that she didnt clean the apartment as required.

She moved out in Nov 2016 and we sent the bill in Mar 2017 (due to having to deal with personal health issues and etc). She is now refusing to pay.

Do we have a right to sue her in small claims court since she did sign that agreement?? Would our argument be valid even if we sent the bill in March?

Btw, we live in MN and have read the renters rights there but they still don't answer this.

I just emailed a lawyer too, so hope to hear from that person soon.

Thanks, everyone!

[Bob Gardner]

My 2 cents.   Forget the lawsuit.  Instead work on your process.  Lawsuit pays once.  Process pays forever.

 What you just bought with the $1000 is a lesson:  Never let them use the damage deposit for the last months rent.  

Tenants often ask to skip last month- then at move out time, they are very busy, frazzled and they have zero reason to clean or even remove their old furniture.  So they don't 

Here is what I do.  It's pretty good I think.  (But any advice to make better would be appreciated.)

NEVER let them use the deposit as last months rent.  - 50% pay if you just demand it

Charge them a late fee on the 5th - 20% will see your serious and pay now 

Send eviction letter on 10th.  - 20% will call and pay now

File on them on the 15th. - Last 10%  or less are just difficult.  

This is the standard process for us in MN.

Then you have a case backed with letters and legal servings to go after them for the eviction costs and late fee and you have the threat of a UD backing you.  

Spend your time honing your business process going forward so this does not happen again.