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Tenant threatened to sue (4 day's notice move out)

We own a home in Oregon and rent out one of the rooms. We have a toddler and want to keep this home as family friendly as possible. This is something that was talked about before renters agree to live with us. That we wanted to have an intentional community environment. We have been living with a couple since May 1st. They had a 6 month lease with us but from the first month living with them we noticed a lot of problems. They ignored us when we would say hi and they created a very hostile environment.  On one occasion they twisted the words I said to make me look like I was racist, and obviously I realized with time that they just take offense very easily. I felt like I had to walk on eggshells around them. So we decided to give them a 60 day notice to find a new place. We also wanted to get a property manager to take over since this seemed like too much of a headache for us. They got very angry and threatened to sue us because they said it was a breach of contract. Long story short when they first moved in they paid first and last months rent. They were paid up for the next month (August) and I was expecting them to move out September 1st. They ended up finding a place for August 1st and they are asking for the last month's rent back.  Am I obligated to return it considering they gave me a 4 day's notice?

You wanted them gone, they left as quickly as possible you should be thankful they left without a fight and you should give them August's rent back as soon as they are out.
I agree with Scott H on this one.  Better  to have them gone, gone, gone.
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