This article looks at Texas State laws and provides you an overview of how you can reject an application for a residential lease. You must specify what on the report you rejected them for whether it's one thing or multiple.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. In your letter, you should politely decline the applicant. If an applicant is rejected based on information found on a credit report, the landlord must provide an Adverse Action Notice to the applicant.