Prroperty management company put previous tenant in collections

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I recently had my property management company take over management of one of my properties I was self-managing from out-of-state. The tenant was becoming difficult and late on rent and I just did not have the time or patience anymore. The tenant continuously paid rent late or not at all. She recently broke the lease and left the property. Once the PM went over to check on the property, she had "sub-let" the place to random people and we were forced to kick them out. Her security deposit was used as rent one of the previous months she did not pay and now I  have over $2,000 in expenses to get the place back in rentable shape. The property management company put a collection notice on her credit and she called and texted me freaking out about this telling me she was going to sue and making up all types of issues. The collection notice was only on the few months rent she was missing from when the management company and not all of the thousands of dollars she still owes over the last two years.

This situation is making me feel bad for her and I do not know what to do. I will have no issue going to small claims if it comes to that, but I really don't want to go down that road.

How should I handle this or what can I do? I am not asking for the full sum of money back just a reasonable amount of the total that is owed.

This is my first situation like this and it makes me realize I cannot be a landlord.