You just calmly look at her and say, nope, we no longer have  lease, so you are a month to month tenant now.  

If the price is right, I would do it and I would build a very awesome pond, with high waterfall in the the backyard.

We've tried to remain calm and rational in the face of her attempts to intimidate us. 

Nothing beats the calm advice of a seasoned good 'ol county seat lawyer for providing you a practical plan of action based on avoiding, not creating, a lawsuit.While you could use the free services of the local county Bar Assoc Legal Referral Serviced (I was treasurer of the San Bernardino County Bar LRS some years ago) you are likely to get a better referral from an underwriter or in-house counsel at a title insurance company. 

The neighbors have actually calmed down a bit but I did take Jennifer L.

The mold inspector may just being a smart *** , and maybe this lady is better than that and the money is going to calm her down a bit.

It took me a few days to calm down.

The 1st notice was just to me, the second, the tenants got a copy and I had to spend time calming down the wife (my tenant) because the city cites the whole ordinance and she was going on and on about graffiti and vines, which I knew wasn't the problem.

If something does go to court everything that you communicate is professional and calm. 

But, since you're on a month to month contract, if you want to leave, you just have to give 30 days notice.Then, they (the complainers) will usually find a few maintenance things they want fixed, just to flex their muscles a bit, which we would take care of, and then everybody calms down again.I also never had anyone move over an increase.