Purchasing a property with rented units

[Estevon Chavez]

Hello BP community,

my business partner and I are putting an offer on our first rental property! It is a single family home with an ADU in the back. The back property already has existing renters that are renting well below market value. However, We would like to keep them as tenants while we renovate the front house. They are on a month to month lease and they have been there for 15 years. We want to let them know that we are going to slowly increase rent and give them the option to stay.

Our question is..

since the house is under new management. Should we renew their lease and have them put down a new security deposit? We are unsure of the process considering this our first rental and we have never had previous tenants befor.

thanks again