Security Deposit from Inherited Tenant

[Neil Whitney]

Okay so I have a little bit of a dilemma. I recently purchased a four plex and I inherited two tenants who are on month to month leases. One tenant has no security deposit monies on account as she is the previous owners sister., she was paying 685 per month. The other has her 750 deposit and paying 750 per month which I collected at closing. I sent out a offer for a lease renewal & increase giving four different options to the remaining two tenants beginning June 1 2017. a) Sign a one year lease at 775 per month b) Sign a six month lease at 800 per month c) Sign a month to month lease at 825 per month d) move out with 30 days notice ( it was in their lease to provide this) Now my dilemma, the sister chose the one year at 775 and sent it to me this month, I will send her back her RENT refund with her new lease, I think I should ask for security deposit but my wife thinks we should leave well enough alone and be happy we have an existing tenant. I believe that I should have a Walk through and do a move in condition report when we sign the new lease as well. Any suggestions would be greatly appreciated.

[Austin Fruechting]

I personally wouldn't request a security deposit when there is none with the current tenant that wants to stay at the increased rent.  That may push her out and then you'll have a vacancy and repairs to do.