Tenants Did not pay Deposit

[Xela Batchelder]

I'm taking over a building and leaving the tenants in the space.  They are all long term tenants (newest is 2 years).  The leases are now month to month.  They said they have not given any security deposits or similar.  If you were taking over a place, would you now charge your tenants' security deposits?  And if so, how would you do this?  Slowly over a few months?  I'm already planning on raising rents closer to Market rates over the next 2 years, so they will already be getting some increases.  

[Mike Cumbie]

As far as the deposit goes, I most likely would not try and add one at this stage. There is nothing you can say about the condition when they moved in. Hole in the back of a door? "Yeah that was there", Missing drain pipe "It was like that" and you will have nothing to go back to. If you go to an established tenant (5 years) and say "Hey I need an extra months rent to hang on to" They will start off defensive already. 

Just my 2 cents and good luck!