So, it seems that regulations governing the relationship between the landlord and tenants is the real problem here. If it was easier to recover money from the tenants, and kick them off the property, this would not be a problem.
Unfortunately, tenants do take advantage of landlord-tenant laws sometimes, and that is terrible. Savvy swindlers can use the system to their advantage.
Being hard to recover money from individuals has absolutely nothing to do with landlord-tenant law and everything to do with the fact most individual people don't have tens of thousands of dollars sitting around to pay legal judgements. You'd have these sorts of issues anytime you sue someone else for anything. Best case scenario is that the person who you are suing has the proper liability insurance that will pay the judgement for them. (Liability is included with homeowners insurance and renters insurance but doesn't usually cover intentional actions)
As far as making it easier to recover money. Since it is just another civil case, it would take a complete overhaul of civil court.