PM gave tenant 10 day notice then terminated management contract

[Tricia O'Brien]

Hello BP folks! I'd like advice as to what my top priority should be in the next 7 days with this problem. I'm an OOS investor with a rental SFR in Indiana.

1) The property manager did an inspection at my request April 24 (she hadn't been inside the property in about 6 months) 

2) The PM issued and delivered to front door a 10 day notice due to unauthorized pet (a dog) and $756 owed in April rent and late fees . She delivered that on April 26. 

3) She recommended I do not reimburse the tenants any money for a  floor replacement they did in the kitchen on  April 13  for $550 because it was not pre-authorized. They quality of the work is pretty good

4) Instead of paying April 1 rent, they instead spent $550 to replace the kitchen floor on April 13 through a vendor. They said was dangerous and caused them to trip several times with one of the tenants supposedly flaring up their back from tripping. They took "before " photos that show 8-10 floor tiles missing and some of them cracked at the edge. They felt the kitchen floor was an"emergency" and too dangerous to live with. They told the property manager about the floor in Dec or Jan. However, it appears to me that due to some miscommunications with the PM, and lack of persistence of both the PM and tenant, and PM not returning voice mails ,the PM never got in to inspect it before they tenants replaced the floor on their own.

5) There was also a problem with a railing at the exterior front staircase being "useless" because it only extends up 3 of the 6 steps to the front porch. This was installed by the same PM. 

6) The tenants are wanting a new railing installed at the back door, stating that one of them fell in the past 3 months at this staircase due to no railing and dislocated her shoulder. She told me she's not blaming me for her Mom dislocating the shoulder. She knows there was a lot of miscommunication about the work orders. She just wants it safer

7) Both tenants are are social security disability for at least since they moved in 18 months ago...both have had some hospital admission or emergency room visit in past 3 months.

8) The property manager sent me an email May 2 to terminate the management agreement.

Where do I start to attack the problem??

I told one of the tenants by phone  and email on April 30 I would reimburse her part of the floor replacement cost ($300) as a compromise if she pays all of the April rent by the 10 day notice deadline (May 6) and the May rent by May 30.  That was before the property manager resigned. 

I could ask the tenant to mail me the rent directly or deposit it in my online account until I get a new PM.

There is a No Eviction Order in Indiana so there's no ability to follow through on any eviction in the near future. Looks like they have most of the power to do what they want due to the non eviction order

Looks like I have these options:

1) Should I just ask them to "pay what you can for now" and let them deduct the cost for a railing at the back step from rent as long as they give me a written bid in advance that is reasonable?

2) Or should I take a hard line?

3) Maybe do nothing if they pay no rent and then hire an eviction service to evict them once the "no eviction " order is lifted if money is still owed?

4) Focus on persuade them to pay soon so I can give them $300 reimbursement for the floor I offered?

The entire time they've lived in my place they have often been late or made partial rent payments, but they would catch up in a couple of months.  They say the reason for the April non - payment was they were busy dealing with one of the tenants having surgery in Indianapolis (about 70 miles away). They really like the house. They just aren't paying yet this past due.

Sorry this was so lengthy and rambling! 

Any replies would be appreciated! :)