My background check is $42.99 and often that is almost 3 hours of work for someone so I feel this is a nice goodwill gesture.

It avoids immediate vacancy, maintains goodwill, and gives you breathing room to plan for the September/October listing.Here's the straightforward way to handle it:Forget the "Notice to Quit": That's for ending tenancy/eviction, not for a temporary extension.Use a Written Agreement: Crucially, get it in writing.

It's a good opportunity to give tenants a "yes" at the start of the tenancy, which always helps to build some good will. 

Hit up the Goodwill, maybe a Restore.

She asked if I had any guidance on removing the negative reporting and admittedly informed her I am no familiar with this process other than it being my understanding goodwill requests are generally rejected and the credit repair companies are generally subscription based money grabs.

Possible loss of "goodwill' in the community4.

Starting to regret our good will to help them because it's a hassle to get it rerented and they are getting on our nervesWe did put it in writing in an email that they owe us for the entire term but that we would work to get another tenant.  

Intangible assets like goodwill or tangible personal property (e.g., equipment) are excluded from 1031 treatment and are taxed separately—goodwill is typically taxed as a capital gain, while equipment may be subject to depreciation recapture taxed as ordinary income.To minimize taxes on the sale of the business, consider strategies such as Opportunity Zone investments, which defer gains until 2026 if proceeds are reinvested in a Qualified Opportunity Fund (QOF), or structuring the sale as an installment agreement to spread taxable income over multiple years.

Again, there is a non-disclosure agreement, an arbitration agreement, an agreement not to post on 3rd party sites like this, and for matters to be resolved privately in order to avoid harming anyone's image and goodwill.

If they cannot provide adequate proof, offering a reasonable goodwill gesture might be a practical solution to maintain a positive landlord-tenant relationship.