Download our free rental application denial letter to use for your rental business. Find your next tenant with Avail tenant screening.In your letter, you should politely decline the applicant. 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. Learn how to properly approve and reject tenants the right way to avoid hiccups in the tenant screening process. Here's a breakdown of when a landlord can rightfully reject an applicant, as well as some red flags that might indicate bad faith on a landlord's part. In this article, we'll talk you through what's included in a rental application denial letter and even give you a free template to use.