Inheriting Month-to-Month Tenants, Transfer of Security Deposits

[Miles Curtis]

I was discussing these questions with a friend of mine who is about to close on his first property and I thought I'd pass the questions along to the forums:

1. If you purchase a property and inherit the tenants, tenants who most likely paid security deposits at one point, how is the legal transfer of the security deposit money handled? How do you ensure that the money doesn't disappear during the transfer? Are landlords required to keep the security deposit in a non-personal account?

2. How have you handled the inheritance of tenants who are month-to-month? Do you usually continue month-to-month or do you require a resigning of a lease? What is good etiquette in this case?

Appreciate any feedback!