I always recommend working with a Broker, as they will be able to determine what should be said/ provided and what would hurt/kill your deal, and have probably already experienced whatever hurdles you're coming across, so they will be best suited to help you navigate through them.

Send them a demand letter, threaten legal action, file suit, if at the end of the day you want your unit to be rented they can settle with you while leaving the amendment.

I've never been sued or even threatened with a suit.- Tom

Currently own a rental property in Virginia Beach and renting the MIL suite at the home I live in.My friend is going through a bitter divorce, they are desperate to sell their home ASAP and selling it for cheap.

Have you looked into perhaps getting an older bungalow and doing a second (or third suite)?

And follow us on Instagram when you get up and running.  

I get this letter saying really a bunch of nothing, asserting that I willfully with held the security so now I owe them double security and if I don't pay them by X date they are authorized to file suit in Vermont SUPERIOR court.So, can they actually take this to the superior court as even if they were to tack on lawyers fees I can't imagine it would make it past 5k?

Sharp doesn't mean an Armani suit. 

If the attorney says this is more suited to a limited power of attorney, then go for it. 

We ended up buying a house in Southside district (great for gameday), and may end up fixing up the master suite with separate entrance for AirBnB on special weekends.