The biggest takeaway that I found is that you need to start implementing policies and procedures into your business now to make these types of (unavoidable) situations easier to deal with in the future.

I know we hear all of these stories about how a tenant showed up in court and said the landlord has mold or they did not do proper repairs but there are laws and procedures the tenant has to follow as well before rent can be withheld and then for example, in my state it can only be one half of the rent held. 

Keep in mind that is with bank level verification procedures.

The procedure is they have the contractor fill out 2 forms, they send an inspector to make sure the work is done (to some standard, I would guess), approve it, send me the money, and I send it to my contractor.

I’d rather have a surgeon perform my procedure than someone who read a book and is doing it to save money.

I agree with you regarding fee posting for normal medical procedures.

Let them know you put in new policies and procedures and this new policy relates to all parties going forward.  

I never sue in small claims court, landlords don't respond well when they aren't forced to pay a lawyer (small claims relaxes the procedures and lawyers are not often necessary.) 

If they fail to contact them the tow company will start the procedure to take title on the car and then they will sell it or junk it for a fee.

In CA, this is at standard 3 days.What I would do in your situation is give them this pay or quit notice and word it so that the due date of payment before the beginning of eviction procedures falls on the date that your tenant has promised to pay you.