Your daughter has every right to contact the police for the invasion of her home. What that landlord, (your ex-friend), did was against the law; she can be arrested. I wouldn't hesitate to let her know that information, and that if it ever happens again, there will be prosecution.
They have a deal. Period.
But, it seems as if your daughter should do her level best to get out.
Or to behave like your ex-friend and refuse to pay her debts.

(Kiddin')
Shalom!