After careful consideration of your rental application, I regret to inform you that we have decided not to proceed with your application at this time. First, clearly state the reason for the appeal of the property's decision and restate their reason for denying your rental application.Inform your applicants of your decision with this straightforward, federallycompliant application denial form. A denial letter is a formal way of informing a potential tenant that their application or tenancy has been denied. What are some common legal reasons to deny a rental application? A rental application denial letter, also known as an adverse action letter, is a formal document that a landlord or property manager sends to applicants.