Tenant leaves in the middle of the night, people still on premise

[Alex Duarte]

Hey BP, 

I'm in the process of closing on a Duplex in Los Angeles, CA and I was made aware days before closing that one of the tenants left in the middle of the night without giving notice. The lease agreement was month-to-month and was never renewed the caveat is that he had roommates move in some time between his tenancy there, which were never added on the lease agreement. My big questions are the following: 

1. What do I do with his security deposit? Should I give him the notice to make sure I'm protected on my end? 

2. The roommates keep asking if they can apply and renew a lease, What would you do in this scenario? 

A part of me is saying to vacate the premises so I can renovate and then get max rents in this market but another part of me is saying explore these prospects and still be able to increase rents a bit without carrying any reno cost. 

Thanks for any input and advice in advance. 

- Alex Duarte