Just purchased investment property with tenant. Tenant has a current oral/verbal month to month agreement. I intend to increase the rent after proper notice. Can I request a security and pet deposit at this time? One was never given or it was a very small amount.

I had the same problem when I bought a duplex in Florida years ago. At closing there was a deposit transferred to me for my tenant. They had a pet but I didn't charge then a separate deposit as the dog was well behaved and I could not see any damage. I actually gave their deposit back as they were such good tenants and left the place very clean.

Are you planning on having them actually sign a lease now or stick with the month to month? Both have their advantages and disadvantages. With a lease you have the advantage of literally taking an inventory of the property and it's condition (now) so you can document any damage when they move. If it is a month to month you can go in and document the condition but unless they agree to sign something that you prepared regarding the condition (now) of the premises you're kind of stuck. I used to use a form lease agreement where I could be able to document the property and have the tenant sign when they first moved in showing that the place was in well maintained condition with no holes in the walls, all the doors intact, etc.

If I were you, I'd ask them how long they intend to stay... i.e. months versus years. If it is years, I would suggest a written lease would be to your advantage. This enables you to "automatically" up the rental fee at the end of the lease period should you wish to do so and also give the tenant some kind of peace of mind knowing that they can live there for so many months at x dollars a month. Also how long have they been living there with the pet? Is it well mannered? If so, a small deposit would not be out of order but if it was say a big dog capable of taking off the doorknobs if it got angry or clawed the heck out of the doors... then up the pet deposit to a suitable amount.

If he was a tenant of the past owner, the deposit from the prevoius owner should have been a credit to you at closing.

To raise the rent, you have to give them a one month notice. But it sounds like you need a written lease as notice or at least a written rental agreement,