Your letter should have a professional and informative tone, covering exactly why you're denying their rental application. Download our free rental application denial letter to use for your rental business.Find your next tenant with Avail tenant screening. Comprehensive guide on how to send a rental application denial letter. Learn how to handle rental application rejections legally and avoid potential disputes while maintaining compliance with fair housing laws. 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. You should always act fairly, professionally, and compliantly when rejecting rental applications. Check out our guide below for the best practices. In this post, we go through how to deny an applicant based on suspect information on their tenant screening report. 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.