It's my first time dealing with an eviction, and I'm looking for some advice on a way forward. My tenants stopped paying rent last October. They strung the property manager along with a serious of empty promises and letters from 401Ks about hardship loans. They've been hit on their credit report for around $12K in back rent and repairs. I'm being told that I can have the property managers take them to small claims court, but it will cost me an additional $1K.
The property is mostly a break even situation; the rent gives me an extra $200/mo, but I figure that covers repairs, etc. If I sold the house, I would probably break even after fees and such.
Should I bother going after the tenants for money owed, or cut my losses? I figure they're probably getting ready for bankruptcy (just an assumption). Any thoughts or advice will be appreciated, especially from experienced landlords. Thanks in advance.