renting and kicking someone out?
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Answer it!
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Do it right and the law will help you evict the tenants, do it wrong and it could cost you.
Yes, tenancy laws are so variable from place-to-place, you really need to talk to a local authority.
One really important thing, though: did you get them to sign any sort of agreement, especially a notice of the rules you say she broke?
Regarding the blackmail,make a note of exactly what she said and when. Sign and date it. Maybe consider removing that hold by telling whoever about whatever she is holding over you.
Never rent space without getting signatures on a lease. Even if you let the lease time out and go to "tenancy at will", that initial lease sets the expectations for what the tenant and landlord are responsible for and how much notice either must give before terminating the arrangement. The ONLY safe way to do business with friends is to treat it like doing business with strangers, as far as the formalities are concerned; anything less is both bad business practice and likely to destroy friendships.
If someone's threatening blackmail -- especially if you've got the threat in writing -- bite the bullet and take it to the police NOW. Otherwise the demands will only escalate. (I'm presuming you haven't done anything stupid enough that it would be more than embarassing. If you've put yourself in the position where you're vulnerable to _serious_ blackmail, you have worse problems than the one you've described.)
If he's really a friend, he should understand when you tell him "Look, this just isn't working for me and my family; please find somewhere else to live." If he doesn't respect that request, he isn't a friend and doesn't deserve to be treated as one -- in which case proceed with the eviction as you would if this was purely a business transaction.
Be prepared to looses your friend though.
If you told them they could stay there with out them paying rent etc then you can kick them out when ever you want them too.
Best advice is to consult the police on the matter.
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