Still Living in Fire Damaged House!

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So the dumb renter whose dumb kids set fire to my rent house appear to be still living in the fire damaged house!  I have already informed them that we are going to cancel the lease and that I will refund them their money (she paid in advance) when they turn over the keys (and clear their stuff out of the house), but it looks like they are back.  They were in a hotel during their search for a home, or at least I thought.  

They are paying rent (at a reduced rate), but my insurance-funded contractor cannot begin work because of their dog and crap in the house.

What do you guys think of this situation?  I imagine I could evict them, as I told them before we are voiding the lease as the house isn't  habitable (so I thought).