Under federal law, a landlord who denies your tenant application because of information in a tenant screening report is required to inform you of that fact. Most of the valid reasons for a denial will arise when you check references, run a background check, and look into an applicant's credit report.You can ask, but they don't have to answer. They also don't have to be truthful, as admitting to discrimination of any kind is admission of an illegal action. An applicant will be denied with judgments filed and outstanding debts owed. If the applicant has a negative credit report, this is an idicator that the applicant may not pay rent on time. Late payments on credit cards, loans, or utilities. Why Do Rental Applications Get Rejected? Through a rental application, deposit agreement, or written summary. (4). If a prospective tenant doesn't have enough income to meet the rent, it's within your rights as a landlord to deny their application.