We discuss everything you need to know about turning down applicants and provide a template for your convenience. In your letter, you should politely decline the applicant.This article looks at Texas State laws and provides you an overview of how you can reject an application for a residential lease. A tenant rejection letter is sent to an applying tenant to inform them that their rental application was denied. 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. Inform your applicants of your decision with this straightforward, federallycompliant application denial form. You can use this form letter to demand that the landlord return your application deposit. Did an applicant fail to meet your rental qualification standards?