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How to resolve issues with tenant?

hello everyone. I need your opinion and help with a problem I am having. First off, I am new to this whole renting business and already my tenants are a problem.   The girl upstairs who had been there before We bought the house got her air conditer stolen in the basement which both tenants have access to and called me saying she should be the only one who have access to the basement or garage!! or that we need to do something about the tenant downstairs because they are "hillbillies" who makes all types of noise and hangs their underwear outside.   I already asked that they not hang anything outside the property, but their verbal arguments are getting worse and she even treathened that if "nothing is done, doors will be broken and things will get ulgy". what can I do??? she is on a month to month lease now because her lease agreement expired.
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Do everything in writing , first could you give one tenant storage in the basement and the other one in the garage? Second send them both letters about noise and disturbing each tenants right and it will not continue, each tenant should have peace and quiet. Tell them if this persists both tennancys will be terminated. See what happends it might get better or if it gets worse react.
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