You should always act fairly, professionally, and compliantly when rejecting rental applications. Check out our guide below for the best practices."Sorry, but we will only consider complete applications which must include all occupants and payment of the non-refundable application fee.". Your letter should have a professional and informative tone, covering exactly why you're denying their rental application. Declining to rent to someone for "no reason" is almost always legal. Download a customizable rental application rejection letter template for landlords or property managers to professionally notify applicants. 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. 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.