When a building is sold and the security deposits are passed onto the new owner, does whatever interest accrued when the security deposits were in the possession of the seller carry over to the buyer? 

The main purpose for this is, if for some reason, the debt is not paid over a long period of time (which, of course, shouldn't be the case because you should just evict) but if that debt did remain unpaid, then it would accrue interest just like any other debt like credit cards, etc.

just out of curiosity, will section 179 apply to rental units so that the entire purchase can be deducted right away? 

So, I suggest you send them a notice that you have been overly generous in accepting late rent in the past, but starting July 1st, you will no longer accept late rent, and that all past due rent must also be paid up by that date.If your contract gives them 5 days grace period, say something like, "If rent is not paid by the 5th of the month, late fees will begin accruing and the eviction process will begin."

At this point, I would be more concerned that all security deposits (plus interest if required to be accrued and paid in your jurisdiction) were transferred to you - this should be easier to obtain post-close as it does not belong to the Vendor, but the tenants, and the landlord is holding it in trust.You do have the right attitude, chalking it up to education - sometimes the pricey lessons are remembered best.

That way, once the max is met, the late fee will stop accruing. 

Love this site and great respect for all the Pros helping small timers learn and grow.Questions out of curiosity. - What do you think would be the impact of such kind of ordinance in high growth area like San Jose.

I have a clause in my lease where if a tenant doesn't vacate by end of month they accrue a 3 month holdover penalty.She was give 60 day notice that ended March 31, and she left April 1, 8pm (and left the place a mess).  

And I think they almost invite people's curiosity - hmmm, wonder what's in there, if they don't want me to come inside..... lol.Anyway, I'd just block the gates, and if anyone contacts you about it, then deal with it.  

If not paid  by the 3rd there is a late charge and then a daily late charge accrues after that up to 5% of the rent and that is also when we post the pay or quit.