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Updated over 4 years ago, 08/10/2020
Charging move-out damages to tenant's CC like a hotel - legal?
Hello,
I hope never to be in this situation, but we've all heard or experienced the story of tenants who are evicted (or just leave on bad terms) and trash their unit before they move out. That's what a security deposit is for, but the security deposit may not cover everything in such a situation. Hotels solved this problem long ago--require a credit card on file. If the guest damages the room, just charge their credit card since they already authorized it when they signed in.
I've never heard of a landlord doing this. Is it illegal? Can you require a credit card on file and include a clause in the lease agreement stipulating that damages beyond the security deposit may be charged to the credit card at the prerogative of the unit owner? Does the legality of this vary by state?