I have a property under contract and have the sell-side under contract as well. The house is in excellent condition and I've since learned the tenant remodeled it without permission. They asked if they could change the cabinets a couple of years ago, and then also put in granite countertops, new appliances, laminate flooring, tiled bath, etc.

The rent on it currently is half the market rent due to the sharp market upturn, and the security deposit is only $250. My concern is that the soon-to-be-given-notice tenant (month to month lease) will damage the property  and/or remove appliances after the new owner lets them know their tenancy is ended, on their way out. Things such as taking the granite counters, cabinets etc. The house had a functioning kitchen, etc, before the tenant threw them out.

The seller and I have offered to increase the security deposit to $2,000 to ensure the new owner gets the property as it is, and have itemized the items that are to remain. The tenant refuses to sign the agreement and is evasive. I want my repeat buyer to get the property as it is, without drama, and damage at the time the tenant moves out. My idea was to set the security deposit higher so the tenant didn't receive anything until after having departed. Legally, they probably aren't entitled to anything, but the practical problem remains as there are possible outcomes I cant foresee.

Has anyone encountered this, or have suggestions on how to smooth this out? The tenant is a long-term tenant and the seller lives out of state, and so thought they could do anything with the property they desired.