I wonder if people can win a judgment that includes an interest charge on the original balance due (ie. pegged to rate of inflation, etc.) so that the value of the payoff is not diminished over time. 

Diminishing returns.

Your return on equity (Net income divided by total equity) is diminishing each month with the increase in property value.

A historical downward vacancy rate suggest diminishing demand in rental in your location provided similar rental properties have somewhat downward trend.

To diminish that by inferring person C has good credit but is assumed to be fiscally irresponsible is silly. 

In fact, it diminishes all risk for collections, quite the opposite.

Unless my rental income is high enough for me to quit my full-time job, adding just another rental to increase my income by 10% (and lose 35% of that increase to taxes), is not worth the additional effort (law of diminishing returns for me).

I am a Guesty user and looking to switch away because their value prop is diminishing by the day.

Lol.Additionally, as a landlord, since you incurred a fee, technically you can send them to colelctions for the 35 dollar bounced check fee, which will do damage to their credit, and stay on their report for 7 years.Add an additional collectiosn on their for the collections agency in addition to your own, who is legally allowed to do so (most states allow for original debtor + 1 collection agency to report on a single debt), this makes it substantially more damaging to their credit, as each collections deals at least 20-80 points a piece (diminishing returns).Add a judgement for rent on top of that, as well as a collection set for the rents itself, and a separate set for the eviction costs (because those are separate from the actual rents), and you have pretty much a death kneel to their credit for upwards of 7 years, 10 if they end of fighting or disputing anything after the fact. 

However, it has diminished the look of the property, and should I decide to sell it as is, the value.