Moving out prior to completion of lease

[Callum K.]

Recently a friend of mine told me about how they handle tenants that vacate the property without telling the landlord. He said periodically he will have a tenant move out around when rent is due leaving damages in excess of the deposit and abandoning the contract. He stated that although there is little he can do, he does notify the individual that unless he meets his obligations or at the very least the repairs, he will submit a 1099 for the tenant to the IRS and let the tenant deal with the IRS.

Although I am not one to desire vengeance on someone who abandons leases, I certainly would not want to own many units in a complex and have a reputation as a pushover contractually.

My question is a) has anyone ever heard of this or used it and b) if so, can someone explain how that could be argued as income worthy for a 1099?