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Bounced Security Depsoit Check with signed Lease

I got the lease signed and collected the security deposit. Just found out that the check bounced. Would that be considered misrepresentation and release me from renting to him? We are in Virginia and I do not want to violate any laws. I made a point of pointing out the late fees and return check requirements. What are my options?

I am assuming they have not moved in yet?? Have you let this tenant know about the check? Many states have stringent and in some cases criminal consequences for bounced payments.
The tenant has not moved in. I left a message for the tenant yesterday at noon and still have had no response. My husband says that we should give the tenant the opportunity to explain himself. I disagree and do not feel comfortable moving forward since this event. Are we required to accept the explaination and another source of payment or does Virginia law allow this to under misrepresentation?
I just spoke to the Virginia Division of Consumer Protection and they told me that I could handle it however I wanted. Since the lease is binding, he could take us to court for terminating the lease. The fact that his security deposit bouced does not look good for him. They basically told me that I could handle it however I wanted. I just want to besure that I am within my legal rights.
I spoke to the tenant and he has an answer for everything. His response was that he deposited a check that morning and the funds did not clear the bank before I got there that day. He told me that I should have deposited the check in my bank and by the time my bank sent it to his bank... his check would have posted. So basically it was my fault for rushing to the bank to make sure that the funds were good.
When collecting a move-in security deposit and 1st months rent, require payment to be made with cash, money order, or cashier check. After that, a personal check is acceptable.  This is a a good rule for property management that I use. It insures a person doesn't quickly move-in, bounce a check, and then leave you trying to evict them. Hope this helps.
I totally agree with Stan L. - If you have done all the background checks and this tenant looks good in those regards, maybe he was right?
I had a tenant who is a roommate, move in and then her security deposit bounced.  I am the owner of the unit, and only stay there a couple of times a month.  Can I cancel the lease since she technically hasn't paid for anything yet?  Can I hold her for the full amount of the lease?
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