In your letter, you should politely decline the applicant. Download a customizable rental application rejection letter template for landlords or property managers to professionally notify applicants.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. 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. I, personally, take applications until a lease is signed. Applications are processed one at a time, first come, first served. Make sure you can pinpoint the reason why you're denying an applicant. Misrepresentations on the rental application are always legitimate grounds for rejection. A rental application denial letter (also referred to as an adverse action letter) will need to be issued to the denied renter.