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.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. 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. A standard rental application is a vital tool for landlords and agents, serving as the first step in selecting the right tenant for a rental property. The applicant may be subject to a non-refundable fee to process the document regardless of whether they are approved or not. Applicant fills out a rental application. Hello, I got a denial on a recent apartment application. The reason is Housing verification does not meet property requirements.