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Squier VM Jazz Bass 5 String Dilemma

It would already accommodate one, as that is what they are designed for. You will just have to do a setup after you restring. This includes truss rod, action, and intonation. There are plenty of helpful guides to be found if you do a google or TB search. They will help you far better than I could explain it myself. Best of luck, and I hope you enjoy having the low B! (I know I can't live without mine :D ).

Btw, I would recommend a .135 gauge for that bass, as you may find a lighter one to be a bit 'floppy'.

Edit: Here is a detailed guide that should help. http://www.jerzydrozdbasses.com/akcndfr54jdhrei567/Ultimate_Guide_ver100.pdf
 
If the previous owner wanted it to be properly set up for being E-C it will need a new nut cut in order to accommodate the strings properly. If he just strung it E-C it should be fine, the nut will still accommodate bigger strings.

I would say you will find most B strings sloppy on that bass, a .135 might help a little but I wouldn't expect it to be tight.