Inherited Tenant with no Lease, can I ask for a security deposit?

[Kelsey Rhea]

My husband and I are in the process of purchasing a duplex where one unit has a tenant who has been there for the entire 17 years the seller has owned the property. Her rent has never increased. She pays no utilities, and there is no lease. Obviously, there is a lot to rectify in the situation. When we take possession, we will be raising her rent and instituting a no smoking policy, which will affect her. We will also have her sign a lease. Can we ask for a deposit should she agree to sign the lease?

[Jordan Klumpp]

Yes, you will likely be able to include a security deposit as part of the terms of the new lease. 

Until there is a written lease, your tenant is operating under what’s known as a periodic tenancy (probably month-to-month). You may choose to terminate that periodic tenancy by giving proper notice to the tenant. Then, you may offer her a written lease—you’re free to structure the lease as you see fit, and the tenant is free to either accept the terms or choose to live somewhere else.

I recommend talking to a local attorney to make sure everything is handled according to the laws of your jurisdiction.