I've figured out a lot in the past couple of days. I suspect that both the tenant and the PM were shady. I don't trust either of them. I don't know how much the PM tried to communicate with the tenant, and I don't know what the tenant is telling the truth about and what she isn't. I don't think I will ever know.
I DO know that the PM used the deposit to cover the late fees - she sent me a copy of her ledger that says that straight up. There is NO question that she did that 2 weeks ago - on July 24, she moved the entire security deposit to her own account, and said it's to cover the late fees.
I'm still very confused about a whole bunch of stuff here. The pet rent, for example. I talked with my old PM, and she said that the tenant did not pay pet rent - she had paid a deposit. The new PM added the pet rent into the lease, but the tenant never paid it - not once. I have the ledger starting in May 2017 when this PM took over. The tenant never, ever paid the pet rent. Why did the PM allow her to go a full year of not paying? The first I heard about all these late fees building up was May 2018.
It is entirely possible that my PM was not malicious - just lazy and unethical. I am trying to sort this out and figure things out. I have three rental units and there were issues with all three. It's very clear that the PM did nothing - no walk throughs, no drive bys, no phone calls (literally - she refuses to speak with tenants.) She made zero attempts to actually look at the houses at all. I know this for a fact.
So maybe she was just lazy and just wanted to sit in her office and collect rent checks? It's certainly possible. But that's not what I hired her to do. I hired her to keep tabs on the houses and to be on top of things. And she did not do that. At all.