Buying a rental house with tenants

[Brandon Shreffler]

I am in the process of buying a house that are friends of the current owners.  They are on a month to month written lease with no deposit.

The current owners said they have been good tenants with on time payments.  They are currently getting a deal from the owners with a $774 month rental payment.  I am already planning to increase it to $850 after the first of the year.  What do I do about the deposit?