We discuss everything you need to know about turning down applicants and provide a template for your convenience. When to Reject Applicants.Comprehensive guide on how to send a rental application denial letter. In this article, we'll talk you through what's included in a rental application denial letter and even give you a free template to use. A rental application denial letter, also known as an adverse action letter, is a formal document that a landlord or property manager sends to applicants. You could always tell the truth: "We're sorry, but we have chosen another applicant who we deem to have qualifications superior to yours." In this post, we go through how to deny an applicant based on suspect information on their tenant screening report. There are a few legal reasons why you can reject a rental application. You should always act fairly, professionally, and compliantly when rejecting rental applications. Check out our guide below for the best practices.