How does this work? I dont understand, why the owner had to pay to get them out? Is this something common to do?

This is sad and annoying. You have a property you paid for and someone feels so entitled to it they smear your name. To pay them? Awful.

Wish I had read this earlier. My family had almost the same thing happen. My great-grandfather had a small home (2 bed 1 bath 900sf) that was passed to my grandmother. Our family lived in it until I was about 6 and the 5 of us left. A single man moved in and lived in that home until my brother graduated college. He was understandably upset when he was asked to move out 17 years later. We did not bribe him to leave though, but definitely thought he would mess up the place. Ended up perfectly fine and I actually started my family there and once I moved out my sister and her kids are now in it.

I'd never pay someone to not behave badly For gods sake that's exactly why people are so entitled now. If they wreck your place. Prosecute them!!

I agree that it was kind, but it was NOT necessary... the renting family knew since the beginning this day will come, they repeated the message in 2018 and OP do mentions the husband was in the home earlier and he mentioned again... so this two months notice doesn't come as a surprise by any means... they had a 20 years notice...