This article looks at Texas State laws and provides you an overview of how you can reject an application for a residential lease. Provide a Reason Letter: Select the reason(s) for the rental application denial or include any additional reasons not covered in standard options.Your letter should have a professional and informative tone, covering exactly why you're denying their rental application. 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. It would only become illegal if he refused to rent to you for a reason that was illegal (eg, discriminating against a protected group).