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.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. We outline the top 15 reasons to deny a person's rental application. Get expert insights on approving and rejecting renters. You can ask, but they don't have to answer. They also don't have to be truthful, as admitting to discrimination of any kind is admission of an illegal action. Misrepresentations on the rental application are always legitimate grounds for rejection. The first step in applicant screening is to have the person fill out an application form. When filling out a rental application, be sure to provide accurate information and fill out the form to the best of your ability.