You should always act fairly, professionally, and compliantly when rejecting rental applications. Check out our guide below for the best practices.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. Download a customizable rental application rejection letter template for landlords or property managers to professionally notify applicants. Actually yes, it's called an adverse action letter. Any service that allows you to pull someone's credit has a way of sending this letter. Your letter should have a professional and informative tone, covering exactly why you're denying their rental application. 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.