R.K.
M.,
Wow you really were slammed and are totally justified in feeling like the victim that you feel like you are.
Of course, hindsight is always more accurate than foresight, and based on the best available evidence at the time, you did what you thought was the "right" thing. In retrospect, if you knew what you know now, you would have made a different decision.
Your friends who stood by you before but who now are once again friendly with the family that still owes you money are NOT you, therefore their values and feelings are different than yours. Their experience of the folks who didn't pay you is different than yours, and therefore they behave differently. In short, they can still like your ex tenants.
AND still like you too!
So, you have learned a valuable lesson here. Although an expensive one. Business contracts are meant to be kept or are subject to legal action. These folks were your tenants and failed to keep their promise and as a result should have been evicted, or at the minimum required to pay late fees.
Next time, if there ever is one, you'll need to be up front about the contract and the consequences that each party will pay for failing to perform as promised...and make it clear of the legal remedies which will be applied...nothing personal about it. Just business.
AND that doesn't make you a bad guy. If neither party believes that they are capable of living up to their promises then they shouldn't make them. In your case, and don't interpret this as my blaming you, you didn't live up to your legal obligations to ensure your business by taking action to insure that payments would be recieved in a timely fashion.
Another way of looking at this is to think of yourself as an employee of the "M. and Her Husband and 5 year old Son Company" Your job, what you're getting paid for, is to insure that your tenants pay their rent timely and in full. For whatever combination of reasons, you failed to do this. So that does make you just a tad responsible. (Even if the tenants were absolute jerks).
Fortunately, aside from your disappointment and other uncomfortable feelings, that is all you suffered.
Keep your friends, even if they're imperfect, and remember that they are friends, not your parents who will accept you no matter what, well at least I hope your experience of your parents is or was that good.
Next time, think through your contracts carefully and treat them as the legal documents that they are, and that those contracts are totally blind to the emotional entanglements of friendship and love and caring etc.....unless they are specified in the contract!
Best Regards,
R. Katz, Psy.D.
www.richardkatz.org