We want to reject potential tenants with very low credit score and not so solid credit history. 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. Good evening, BP. I'm writing my Tenant Rejection Letter and found some reasons online as to why a tenant is denied their application. "Unfortunately, I'm going to have to deny your request. 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 your California rental application is denied, the landlord must provide you with an "adverse action" notice. First, clearly state the reason for the appeal of the property's decision and restate their reason for denying your rental application. If a landlord denies your application, they're required to tell you why in writing. This is called a "notice of adverse action."