Inherited tenant security deposit

[Nevin Rasor]

I recently purchased my first duplex and inherited one of the tenants until October(when her lease ends). She is well below market rent and attempts to amend her lease up to appropriate rent have been unsuccessful.
The dilemma I have now is the security deposit. I have not received a walk-in inspection from the seller for this tenants unit, so I am assuming it was not done. I know there are some significant repairs that will need to be done after the tenant moves out, but I noticed them when I looked at the house to purchase it. 
My original thoughts were to delegate the security deposits towards any issues that are not normal wear and tear. However, the tenant wants to do a walk-in inspection because of the change in ownership. I don't agree with this, as it doesn't accurately represent the previous 11 years she has been a tenant there. 
I want to handle this correctly from a legal standpoint but also not be taken advantage of. Thanks in advance for your thoughts and advice.

[Nathan Gesner]

Quote from @Nevin Rasor:

I recently purchased my first duplex and inherited one of the tenants until October(when her lease ends). She is well below market rent and attempts to amend her lease up to appropriate rent have been unsuccessful.
The dilemma I have now is the security deposit. I have not received a walk-in inspection from the seller for this tenants unit, so I am assuming it was not done. I know there are some significant repairs that will need to be done after the tenant moves out, but I noticed them when I looked at the house to purchase it. 
My original thoughts were to delegate the security deposits towards any issues that are not normal wear and tear. However, the tenant wants to do a walk-in inspection because of the change in ownership. I don't agree with this, as it doesn't accurately represent the previous 11 years she has been a tenant there. 
I want to handle this correctly from a legal standpoint but also not be taken advantage of. Thanks in advance for your thoughts and advice.

In a situation like this, I will conduct an inspection and document it with pictures so I can at least establish a starting point. If something breaks between now and departure, I'll have the evidence. As for anything that happened prior to your ownership, you'll just have to let it go. If she's been there for 11 years, I probably wouldn't even charge her for vacuuming the carpet! Give her the full deposit, get her out, and turn this into a money maker!