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.) 

Granted, you may be farming out management when scaled up, but the insights you gain from managing a couple of units could help you oversee management and have some insights in the ownership process (such as CAP EX, Tenant Quality, Turn Around Procedures, Policies, etc). 

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. 

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.  

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

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

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.

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

do not think a GC license is the same in all states or that it will protect you - in CT all it takes to get a GC license is like $200 and a postage stamp - these guys can do roofs too - I think in NY you actually have to demonstrate you know about roofing to get a roofer license - check the procedure before you think a piece of paper means more than it does, and keep in mind the BBB and/or the state may not help you and that it will likely be your money that gets drained if you sue an LLC