Previous tenants are month to month with no lease

[Kyle Wenger]

I have a 2 unit under contract, the current owner told me tonight that the current tenants are month to month, but never signed a lease or gave security deposits. They haven't been late on any payments, but they are employees of his so if they don't pay he deducts it from their paycheck. He's also charging them a little under market rent. He says they wouldn't pass a credit check. When I take over the property on day 1. What must I do? Have them sign my own lease and collect deposit? Or do I give them notice letting them know I won't be renewing their previous deal with the previous owner. Should I worry about a problem of them not leaving since their isn't a previous lease agreement? Help me understand the process that needs to happen.

[Roy N.]

@Kyle Wenger

First become intimately familiar with your local tenancy law to know what you can and cannot do.   As an example, were the occupants are already in tenancy, you may be able to ask them to remit a security deposit, but you may not be able to compel them.   Likewise, your new lease may, or may not, be permitted to restrict rights currently afforded the tenants under the default ("at will") lease provided in the tenancy law.