I have settled litigation myself, and my clients (when I was a litigator in Texas) have settled lawsuits by writing checks for things when they weren't liable, but it was cheaper than paying the lawyers to fight about it.

You would end up in TN to enforce the judgment and end up filing in TN anyway.On the flip side to that, if you get a GA judgment and then go to TN to enforce it, TN generally won't over rule the GA judgment and should tell the tenant that if he has an issue with the judgment (such as he doesn't owe it or was not responsible for that much damage) TN should tell him he has to go back to GA and litigate the issue there.You could just file in GA, get the judg,ment and then sit on it, hope it shows up on his credit and some day he wants to do something about it.Either way could be more expensive and trouble then it is worth in this particular case.

Even if you have an LLC, if something were to happen and you went into litigation, your personal assets could be at risk of having the plaintiff "pierce the corporate veil". 

Will the IRS waive penalties to avoid litigation of something this grey?

See how nice being civil feels?

So this could be litigation exposure. 

@Bob Johnson I work here locally doing land use/planning and site civil.

Have a good calm discussion with the tenants, bring in an unrelated 3rd party if you need to to keep things civil.

They'll tell you it's a "civil matter" so don't even bother. 

The ADA, a part of the Civil Rights Division, while not an authority or enforcer of this subject with regards to housing, is used as a primary source and baseline for all of these laws and acts relating to disabilities.Also, the ADA states that "Dogs whose sole function is to provide comfort or emotional support do not qualify as service animals under the ADA."