HELP!!! What Are My Rights As An Owner With A Bad Property Manager in WA

Hi,
I have a rental property that was all good untill we decieded to sell!…As the story goes my hubby and I bought a property which was a rental for along time and was in state of repair, So I moved into the property with my 2 young children while my hubby did fly in-fly out. In the time of 9 months we had done alot of work to the property includ retic,paint thru out, new carpets, gardens and all the aother little bits and pieces that are costly but dont stand out to the known tenant. 9 months later I have decieded to move back to the local area of where my hubby works and we had decieded to rent the property out. Going thru awhole lot of agents to get the property inspected and valued for rent and also their fees we thought that we had found the perfect agent who saw the house as a great sized house for the area and very neat and clean in our eyes this was the woman that we were looking for someone who could appericate the work and time that had been put in. We sign this lady up ASAP thinking that rentals at this time were in great demand and she said all the right things at the time.
So it comes to 2 months down the track and a tenant has fianlly been allocated, The agent gave this young family with 4 children a big talk up about how great they were and how they were willing to pay an extra $10 aweek rent and so forth.
Anyway it gets to around 4 months of the 12 month lease agreement (DEC-JAN) and we have done the trip to perth with our family to see the extended family and we were expecting our rent money to come in so not feeling to gulity we waited on it and to our suprise we recieved not even 1 weeks rent! When talking to the PM she turned around and said it was christmas and her partner has left. After the PM giving me a huge talk about how good this Tenant was I decieded to drop the rent by $30 a week even then it took her 3 months to catch up…We just took it as it came after all she did look after gardens and so on.

Recentley we have received a water bill for $590 for the tenant which normal gets posted to the PM but came to our address instead due to the bill not being payed. We had been calling the PM on a regular basis to see how it was going as she was still catching up on her rent let alone a water bill that big, Every time all we were told is that its getting paid dont worry trusting the PM we didnt untill we got the bill.
We have found out the that the tenants are planning on disputing the bill due to a leak..Which we had not heard a word of only a leaking toilet. So now theres big dispute that the tenants are out in 4weeks with this water bill still out standing we have written a letter to the PM saying that we want an eviction notice sent out or the rent money put on the bill because its in our name and the PM has said that we cant do that…
Long Long story short we have caught the PM out lying time after time it seems that she is siding with the tenants. We have only just in the last 2 days receieved the property condition report that says that there was chips in walls and scratches! Like I said before we had freshly painted the whole house the rooms were done once we had left by a family memeber so we think that she has just typed up a dodgy property condition report  because we had put it to her in writting after she had said she had already sent it.
This PM is the owner of the company and she contradicts herself alot and twist what is said to her by us.
We are trying to sell the property with anthor agent which is proving to be a mission due to the tenants new boy friend calling the selling agent and abusing her for no reason that I can see unless the PM has said something bad to the tenant about the other agent due to her being very annoyed that we chose to sell thru someone else as she sells property as well.

Im just looking for advise inregards on what to do if the tenants dont move out it has to procede to court and the PM doesnt want to take them to court and says that they are great tenants? We have thought about changing agents but then were advised against it due to being able to take the PM to court for not for filling her duties to satisfactorty manner < can this happen?
Also with the property condition report its all wrong so have we got a leg to stand on with that also?, Im guessing that she went thru the house recently and noted the new chips as old ones. 

Its so annoying because we trusted this women and luckily we have been on her back and figured out that she has been lying and not doing what we pay her for, But what do we do now???