Just bought my 1st rent house. Great tenant, raise the rent?

[Matt C.]

I just closed on my first rent house. The tenants that are in place have been there 2 years. They appear to be great tenants. They have kept the house in spotless condition for the last 2 years and always pay on time. At the moment, they are month to month on the lease with the previous owner. So, I want to get them on a lease with me. Also, they have a small dog. From what I have seen here on BP, I would say no pets, ever. But, they have been there 2 years and nothing is damaged, so I don't have a problem with it. The current market rent is $1250-1300. They are paying $1100. They have stated that they would like to stay maybe 2 more years then buy something but not this house. I want to raise the rent but I want the tenants to stay more. I am managing the property myself. They seem like good "starter" tenants for a brand new landlord. My questions are:

1. How would approach increasing the rent? Would you wait to sign a new lease for a few months to build some rapport with the tenants and feel them out for yourself? Would you try to raise the rent at all?

2. The previous owner did not collected a pet deposit. Would you collect one now?

Thanks,

Matt