New Landlord Question Regarding Security Deposit

[Melissa Rudolph]

My husband and I are in the process of closing on our first rental property! ( woohoo! :) ) It is a duplex, with one side currently rented. The renters have been living there the past 10 years, so there is quite a bit of wear and tear and repairs needed. There is a security deposit that will be transferred to us from the current landlord. I am a little confused regarding why we are being given a security deposit when I would think over the past 10 years, that deposit would have been used up for repairs. Are you only able to deduct from the deposit when the tenant moves out, and therefore the current owner has no choice but to transfer it to us? Can anyone give clarification on this? Also when we receive ownership, we are planning on doing a walk through with the current tenant and making note of the current condition. How should we handle any damage that was 'pre-existing'? i.e. damage that the previous owner chose not to fix, such as missing bedroom doors, holes in the wall, broken fans etc.?