Your letter should have a professional and informative tone, covering exactly why you're denying their rental application. Download a customizable rental application rejection letter template for landlords or property managers to professionally notify applicants.Why Do Rental Applications Get Rejected? 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 is included in the Fair Credit Reporting Act. If an applicant is rejected based on information found on a credit report, the landlord must provide an Adverse Action Notice to the applicant. We outline the top 15 reasons to deny a person's rental application. Get expert insights on approving and rejecting renters. Inform your applicants of your decision with this straightforward, federallycompliant application denial form. A tenant rejection letter is sent to an applying tenant to inform them that their rental application was denied.