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Tenant wants to move to a different unit

Hello All, I have a good tenant in a studio unit that is interested in moving to another unit I have (in a 5 unit complex) that is a one bedroom.  He is on month-to-month in his current studio, but if he moves to the one bedroom, I want a 12 month lease.  Also, how should I handle the paperwork stuff and security deposit?  I don't need another rental application--do I do an addendum for the new place and charge him the difference in security deposit amount? (slightly higher for the one bedroom unit)  Appreciate the advice/ Barbara
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Just issue a new lease and add something to the effect that the prior lease (for the studio) is no longer active.
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