How do I settle a breach of contract if our tenant abandoned our property?

It sounds like you have really been had. No good turn goes unpunished, so it seems. Can you even find this guy?

You have a few options as to how to proceed. Depending on the amount owed, and how well documented it is, you can proceed either via small claims court, regular court, or simply by submitting/selling the debt to a collection agency. Which option is best, or most likely to recoup the funds as soon as possible, depends on a number of things, specifically how much the debt is, the tenants' ability to pay, your ability to locate the tenant, and of course what other defenses the tenant may have. You best bet is likely to speak with an attorney as to how best to proceed. If you can easily locate the debtor and the amount is relatively small, a collection demand letter that implicates attorneys fees could well solve the issue right away. Of course, then again, it also may not and a court proceeding may be necessary. The collection route, if available, could get you funds quicker, but ultimately to a lesser extent as you often sell these debts for pennies on the dollar. If the circumstance here is an atypically-structured landlord/tenant arrangement, which it appears to be, you may have some further legal analysis necessary and thus a collection agency may not be willing/able to take the debt in the first place.

You should consult with a landlord-tenant attorney in your area to determine the viability of your claim. If you have a signed contract, have performed your obligations under the contract (providing room and board), and your tenant has failed to perform (hasn't paid what he promised to pay in exchange for room and board), then you likely have a sold claim. You must first determine if the amount he owes is worth the legal fees to recover. You may be able to recover legal fees, depending upon the laws of your state and the legal theories upon which your attorney bases your claims. You must next find this person and serve him with a complaint. Finally, you need to determine if this person will still be able to pay your claim against him should you prevail in the suit. Obtaining a judgment is often easier than collecting on it.