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Yeah fairly sure there aren't such provisions in Vic (but one of the local agent forumites might be able to confirm or correct me). So now your friend is in a bit of a pickle. This is why my original advice at the beginning would have been to ignore the "48 hour notice" - since your friend...

Only some states have a provision along those lines - and it only works in certain types of notices I think. Is this property in Vic?

Yes I can understand all that (trust me - I dealt with PMs like that literally for a living), but like you said, the most important thing is to protect against the PM trying to claim the extra 2 weeks. And the best way to do that is to: 1. Remind the PM of that agreement to mutually...

Sigh, its not a great reply. There really wasn't any need to make that sort of threat. You should have just written to confirm and refer to the mutual agreement to terminate - which I understand has already been made orally. Your email makes it sound like there hasn't been an agreement and...

So how many days has it been since the "48 hour notice"?

Well yeah if your friend hands in the keys now, she risks the PM turning around and alleging a break lease situation. The PM is probably having to back peddle because there is no notice to vacate...

No. No, renting out a place short stay doesn't change the class of a property. There's no such thing as immediate eviction or evacuation. You always need a court or tribunal order, and generally the applicable notice period before the application.

Well the rent and bond can't be retained by the LL without a proper legal basis. Even on a termination for breach, there has to be damages arising from the breach.

Sounds like the PM is completely full of it - 48 hours lol. Believe or not, just because there is a breach of the sub-letting clause, doesn't necessarily mean termination will follow.