Security desposit with ownership change

[David Crowley]

I've recently purchased a duplex and inherited a tenant who's been living there for 12 years and smoking heavily in the unit during that time. The seller provided me the security deposit, but I'm uncertain how to handle the deposit once the tenant's lease ends in a few months. The unit requires significant repair due to the smoke damage. This is my first property and I'm trying to be proactive and wondering what the best approach is with the situation. Any suggestions? Thanks