Questions from a Newbie, taking over property with existing renters

[Taylor Lewick]

Hi all, first post.  I'm currently looking at acquiring a property that has a single family home, and a detached bungalow.  The units are occupied, and rent for $750 and $500 each.  (market level for my area)

My questions are:

1. 1.  Currently the landlord pays the utilities, which concerns me.  I feel the tenants have no motivation to use resources efficiently.  I'd look to add a meter to the bungalow unit and make tenants responsible for utilities, or pay the utilities and bill them back to the tenants based on a formula, i.e. 1/3 2/3.  However, my understanding is the current tenants have both lived at the units for at least a  few years, and have expressed desire to stay.  So how would you handle this?  Would you make the change, or would you adjust the rent down a little to soften the blow?
2. 2.  Have you bought property that is already occupied?  If so how is the security deposit typically handled, does the current owner/landlord transfer to new on closing?