Inheriting Tenants with No Deposit

[Oscar Rodriguez]

I am currently in contract for two duplexes.  They both have paying tenants on month to month leases.  The issue is that none of them have deposits.  What are some suggestions for handling this situation?  If anything at all.  I'm ok with the current rents as is.  As each tenant moves out, I will rehab and get more rent at that point.  Thanks for any input.

[Nathan Gesner]

Once you close on the property, give all renters an introduction letter with you as the new owner. Include instructions for rent payments, reporting maintenance, etc. Also notify them that all renters have XX days to complete an application, pass your screening, and then sign a new lease with a rate of $XXX and a deposit of $XXX.

Essentially, you are forcing them to apply just like you would a new renter.