Buying a property with existing tenant on month-to-month

[Katrina Wallace]

We are in the midst of purchasing a property with an existing tenant that has a lease that has become month-to-month.  The rent on the property is under market value and we plan on raising it.  When should this conversation be had with the existing tenant? Does it have to wait until after closing?  The existing lease says that in order to give notice to terminate if they are to move out then it would the last day of the calendar month following the month notice is given. We close on the house the 9th of the month.

Any tips on the best way to have the rent increase conversation? The rent is currently $850 but with some updates to the property it will go for $1,300. We are thinking about raising the rent to an amount in the middle if they decided to stay on since we would not be able to make the big updates until the property is empty.

The current lease does not allow for smoking in the property or animals.  The current tenant vapes (although I don't know if they do it inside) and has a dog. Is this something we should discuss with the current owners? How does it effect the security deposit they paid the original owners? Since we do not know the state of the unit prior to purchase is it even possible to use any of the security deposit funds when they move out?