Lodger in daughter's home

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I own a property which is my daughters home and she has 2 lodgers in in there with my agreement, both students at university. One is the absolute perfect lodger/housemate. The other is quickly becoming the lodger from hell.

Both were given excluded tenancy agreements (lodgers) and the dates for the agreement was from the day they moved in until 31 July 2013, with 2 month notice period but also with viewing of the room from March 2013, if we did not want them to stay or they did not want to stay, so there was someone going in on 1 August.

The lodger from 'hell' has caused a number of issues, the worst being extreme body odour, unwashed clothing, perspiration, and trying to push the other 2 out by 'taking over' available space in the house.

There have been 2 landlord inspections and on both she has been told to clean up her room, air her bedroom, clean the bathroom, not to hand we washing on the blinds etc etc . On the second inspection the smell in the bedroom was so bad we ended up being physically ill. In addition it is a new property and she refuses to open windows so black mildew is on the windows. My daughter has now been instructed to enter the room and do it herself, but as the rooms have locks on them (we have keys) she has taken to leaving the key in the lock when she is in the room - not that that stops us as we enter when she is out and she has been told we will enter.

The issues were raised with her at the time verbally and she was told that she would receive a formal letter regarding the poor standard of the property (from RLA) and problems that she has caused.

My question is, although we have given her a period of time to be in the property - and she has a two month notice period - as a lodger am I able to give notice to her to quit at any time within that period,and also to disregard the 2 month notice period?

At the moment I am writing to her and telling her we will not agree to her continuing the agreement (under a new one) in march, and putting her on a rolling 2 month notice from now that if the situation does not rectify itself she will be asked to leave immediately.

Can I do that legally?