First property under contract- no security deposit

[Jennifer Greuel]

My husband and I just put our first property under contract! A 4 plex we think we got for a really good deal. The property comes with 2 month-to-month tenants who are employees of the old owner's restaurant. As part of the purchase agreement, the old owner is going to pay the difference between their rent and market rent so they can stay in the 4 plex for 6 months. However, because they are his employees, they don't have a security deposit. Any ideas? Do we just hope they don't damage anything?

[Cassi Justiz]

If they are month to month, you are welcome to change the terms of their lease and ask for a security deposit. Chances are, they probably did not do an official move-in inspection either. I would collect a small security deposit and ask both tenants to do some version of a move-in inspection. That way you can have an official condition report and a deposit.