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The easiest way is to call or email the applicant and simply inform them that you are not able to approve their application and leave it at that. You are not obligated to give them a reason and often once that conversation about why you do not want to rent to them starts it turns into a an argument that is hard won.
(Landlord's last name), Thank you for taking the time to review my rental application at (property address with unit number) and now, my appeal letter. I understand that my application was not approved due to (reason for denial), but I wanted to share additional information for your consideration.
To deny a tenant application, you need to let the prospective tenant know that you will not be selecting their application by sending them an adverse action letter. This letter informs the tenant why they are being denied, and if there is any way that their application can be reconsidered.
We recommend declining applicants in writing (email is best). If you've rented the unit to another applicant, you can say: We're sorry, but we've rented the unit to another applicant. Thank you for your interest.
Dear Name of Applicant, Thank you for applying to rent the property at Rental Property Address. We regret to inform you that your rental application has been denied due to the following reason(s): e.g. insufficient income, low credit score, owner chose another applicant, negative rental history, etc..