Inspection Period - Leases Not Up To Par

[Ken Martin]

Hi BP community, I'm currently in the inspection period on a small multifamily property, and i'm finding that many of the leases are on a month to month basis, some don't have security deposits, and one tenant is actually a month or two behind on payments (the owner is very old and is basically mismanaging the building). This is a building that I will be re-positioning, so it's not a terrible thing that some of the tenants are on a month to month basis, most of them is a little concerning. Also, how should I treat the past due tenant, and the lack of security deposit on some units? Once renovated, there could be some real upside to this property, so it isn't something I want to walk away from completely.