Your letter should have a professional and informative tone, covering exactly why you're denying their rental application. This guide will help landlords navigate the rental application denial process and provide a free rental application denial letter template.First, clearly state the reason for the appeal of the property's decision and restate their reason for denying your rental application. Below we outline some of the common reasons why a rental application may be denied, and how you can fix them. From the date of the judgment up to the date that your rent is next due. d. If you stay in the rental unit during the appeal process, you will be required to. If the application is approved, but they want to back out, then they lose the security deposit entirely. If it is declined, then it is refunded. Application Requirements Application must be filled out completely and accurately. An incomplete application may be rejected.