In your letter, you should politely decline the applicant. Download a customizable rental application rejection letter template for landlords or property managers to professionally notify applicants.You actually don't have to give him a reason. But a better qualified applicant is always a sufficient reason. 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. If an applicant is rejected based on information found on a credit report, the landlord must provide an Adverse Action Notice to the applicant.