@Marc Weisi - Thanks for the thoughts. I can only say I am lucky that I have a No Subletting clause in my lease and I just expanded upon it. Ultimately, unless you are in the apartment all the time; which you wouldn't be, how are you going to know someone on the couch has an evil agenda - to not pay rent and stay as long as you can.
I have already taken steps that will be the new protocol going forward.
1) Tighten up the lease and add additional emphasis on the NO SUBLETTING clause. Also make it clear to prospective tenants.
SUB-LET: Resident may not sub-let the Premises or assign this Lease without the prior written consent of Management. Resident(s) shall not assign this Agreement, or sublet or grant any license to use the Premises or any part thereof without the prior written consent of Landlord. Consent by Landlord to one such assignment, subletting or license shall not be deemed to be a consent to any subsequent assignment, subletting or license. An assignment, subletting or license without the prior written consent of Landlord or an assignment or subletting by operation of law shall be absolutely null and void and shall, at Landlord’s option, terminate this Agreement and start the eviction process of all Resident(s) and occupants.
If subletting is approved by the Landlord, a one-time fee of THREE HUNDRED DOLLARS ($300.00) PER SUBLET, is assigned to the lease. All subletting individuals are required to submit an application to the Landlord for evaluation and screening. Landlord reserves the right to reject any sublessee that does qualify. If any sublets are initiated by Resident(s) without the prior written consent of the Landlord, for each individual sublet, Resident(s) will be assigned and responsible for the subletting fee, for each sublet, spanning the entire term of this Agreement.
2) I use tenant cloud which is free and awesome in ensuring all documentation is in one place and easily available in the event an eviction is required. They even allow you to send via email all late notices, etc. Really happy about that software right now.
3) I tried cash for keys, but I only offered 1,000...in hindsight, I would've offered 3,000 to start now as she may have taken that and between time and cost, 3000 is better then 3 months of no income, lawyer fees, my time, etc. Lets be realistic. An eviction can cause - at least in my case almost 10,000 - 13,000 in lost rent, legal, damage to apartment, etc. I am still in court because this scumbag keeps adjourning, holiday breaks in the court, etc.
4) Spend more time in court - I think a big part of the problem is that I did not know what to expect, and was nervous about the situation. Sitting there for one day opened my eyes as I did not see the evil landlords, but good guy landlords that gave a deadbeat a break and then they took advantage of that persons generosity. I also saw those that think they can do this on their own make stupid mistakes and suffer for it in the court. There are a lot of evil people out there and you are just a means to their end of free rent.
5) Accept that you have NO power. yeah you can send notices, drive prices, but at the end of the day, you own a liability that will not always be a resource. That being said, its all part of the game and even if you do everything right, you cannot always determine peoples actions and how they will impact you.
6) I increased my insurance rather then paying for the cheap coverage. again people are capable of doing anything. When you have a liability - treat it as such and cover yourself as best you can for the unexpected.
Beyond that...I wish prices were cheaper so I could get another good cash positive property :)
Hope that helps! Good luck everyone! Ill come back when I get back from court next week....