Newly aquired Duplex with renters

[Mike Putnam]

I recently bought a duplex at an auction with existing tenants. 

First Issue

One of the tenants has a pitbull for a pet. This is the first time I have encountered this problem.  My Insurance will not insure the property knowing that a pitbull is being kept there.  I can get insurance elsewhere, but it is more expensive, and they exclude the dog from coverage.  I haven't talked with the tenant yet.  I was looking for some advice first.

Second Issue

The Former owners allowed the tenants to not pay rent for the month of November, instead of paying the deposits to them, or me.  Maybe this will be an issue, maybe not.  Any advice on how to approach the tenants on this issue?

We have not closed on this deal yet.  It could very well be Jan Before this happens.

[Nathan Gesner]

If your insurance will not cover the animal, notify the tenant immediately. You can require them to purchase the necessary insurance or do what you can to get rid of them as soon as possible. 

You messed up on the deposit. A deposit should never be applied to anything until the tenant is out. This is your leverage to ensure compliance. The previous owner spent it, which benefits the tenant and the previous owner but now puts you in a deficit. I would contact the renter immediately and let them know the lease agreement requires a deposit. Demand that it be paid in full within 30 days or they should move out.