If you are selling a tenanted property which the buyer will move into the contract requires the seller, on possession date, to hand over the home in essentially the same condition as when the home buyer viewed it. If the tenant damages the property you the seller will be on the hook for the costs of the damages. The seller will have to reimburse the buyer, those costs which could exceed the damage deposit. It will then be the seller's responsibility to recover those costs from the tenant. The best thing to do is be a great landlord. Treat it as a mutual relationship with the tenant and you should have few problems when they depart. If you are buying a tenanted property where the tenants will be moving to allow you to reside in the property consider a Holdback. This is where an amount of money is held in trust by your legal professional until the property has been deemed to be as it was when you viewed it.