A rental application denial letter, also known as an adverse action letter, is a formal document that a landlord or property manager sends to applicants. We discuss everything you need to know about turning down applicants and provide a template for your convenience.You don't have to be specific. I generally say something along the lines of applicants didn't meet rental guidelines. You should always act fairly, professionally, and compliantly when rejecting rental applications. Check out our guide below for the best practices. RAAC reserves the right to take back a property in the event that an applicant fails to complete the plans within the agreed upon period of time. Your letter should have a professional and informative tone, covering exactly why you're denying their rental application. In this post, we go through how to deny an applicant based on suspect information on their tenant screening report. I have a Contested Motion.