I bought a house with tenants in it.

[Anthony Gale]

How do I handle security deposit from them or does it transfer from seller to me? or do I ask them to leave,

what's the right way to handle this?

[Charlie MacPherson]

@Anthony Gale  You need to get an estoppel certificate completed ASAP.  It should detail what the status of deposits is, what the rents are, whether a lease is in place and under what terms.

Essentially, this protects you from the tenant coming back at a later date and claiming that you're holding deposits that you aren't - or claiming different terms on the lease than those they agreed to.