what's in the lease is not relevant if it contrevenes exisiting law. AFAIK, your visitation clause is unenforceable, but the landlords here can comment further.
Do they pay their own utilities? i.e. is there a real cost to you for the extra people there (outside of 'wear and tear' type of costs)? If there is, it's a bigger problem...but if not, I'm of the opinion that it's best to keep on good terms, if at all possible, because a tenant who knows they can work the system can make your life very, very difficult.
I'd talk to them, find out how 'temporary' the situation is...then go from there.
suffice to say, there are creative (unethical, perhaps illegal) ways to get a tenant out of an owner-occupied residence within 24 hours...but that's a last resort (but one I would use if someone was playing the system or damaging my property).
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