“When you’ve identified the ideal tenant for your property after reviewing their Rental Application and conducting tenant screening, send them a rental application approval letter.”
Not only does this letter inform the renter of your decision, but it also provides essential details about the lease terms. It sets the tone for future interactions and shows the tenants they are in capable hands. Using this form makes the process easier.
What Is a Rental Application Approval Letter?
A rental application approval letter is a document a landlord provides to a prospective tenant to confirm the rental application is approved.
You may also hear this document called a landlord or application approval letter.
The letter will be addressed to the tenant, providing critical information regarding the lease.
For instance, it might include the following:
- Property address
- Lease start date
- Length of the lease term
- Monthly rent payment amount
- Rent due date
- Security deposit amount
- Move-in date
The approval letter should also outline the next steps and provide your contact information.
When Do You Need a Rental Application Approval Letter?
Sending a rental application approval letter is one of the last steps in securing a new tenant. After completing your screening process and selecting a tenant, you only need this document.
Below is a brief guide to how to lease a residential property.
Finding Prospective Tenants
The first step is advertising your property so potential tenants know about it. Depending on your budget, you can find renters using one or more of these advertising methods:
- Online listings
- Social media
- Word of mouth
- Print ads
- For-rent signs
- Flyers
You might consider hiring a property manager or rental agent if you have multiple properties.
An experienced professional will know the best way to find renters in your area, and they can advise you on other parts of the process.
Showing the Property
Next, you must show the property to interested people at an open house or by scheduling individual showings.
Have a rental application available for prospective tenants to fill out, and be ready to answer questions about the property, lease terms, and application process.
Some prospects may lose interest if you seem disorganized or unprepared.
Screening Applicants
There are several tools available to screen applicants and identify red flags.
For instance:
- Reference check. The applicant’s employer and past landlord are crucial references, as they can verify the prospective tenant’s employment/income and rental history.
- Background check. Criminal records and certain convictions may indicate a higher risk to your property and other tenants.
- Credit check. You can run a credit check on a tenant to get a fuller picture of their financial history and stability.
Under the Fair Housing Act, you cannot base your decision on the applicant’s race, skin color, religion, national origin, sex (including gender identity and sexual orientation), familial status, or disability.
Additionally, the U.S. Department of Housing and Urban Development has issued guidance on the Fair Housing Act, indicating landlords cannot deny an applicant based solely on a criminal record.
Some cities and states, such as New Jersey, have passed “Ban the Box” laws limiting when and how landlords can use criminal background checks in their screening process.
Before running a background check, research the laws in your area.
Notifying Applicants
Once you have chosen the best applicant, notify them via a mailed or emailed approval letter.
If you are unsure what to include, check out our sample rental application approval letter.
You should also send rejection letters to the applicants you have not selected.
If you based your rejection on information obtained from a consumer report, you must disclose that fact in an adverse action notice under the Fair Credit Reporting Act.
Signing a Lease Agreement
The final step is to prepare and sign a lease agreement.
Since local laws and requirements vary, using state-specific lease agreement templates created by attorneys is wise.
Why Use a Rental Application Approval Letter?
A well-written rental application approval letter can serve several important purposes:
- Providing a record of your decision
- Helping renters feel welcome
- Creating an excellent first impression
- Verifying the lease terms
- Outlining any next steps the tenant needs to take
- Ensuring all parties are on the same page
How to Write a Lease Application Approval Letter
Step 1 – Enter Sender’s Information
Provide the sender’s full name and current address, the landlord, or the rental property management company.
Step 2 – Fill Out the Date
Write the date of the application approval letter.
Step 3 – Enter the Recipient’s Information
Provide the recipient’s full name and current address, which is the applicant and prospective tenant.
Step 4 – Enter the Property Address
Provide the complete street address of the rental property.
Step 5 – Enter Lease Information
Write the lease term dates, amount of monthly rent, rent due date, amount of security deposit, and the proposed move-in date.
Step 6 – Enter Landlord’s Contact Information.
Provide the landlord’s phone number and email address.
Step 7 – Signature
The landlord will sign the approval letter.
Rental Application Approval Letter Sample
Below is an example of what a rental application approval letter looks like.
Frequently Asked Questions
What is an offer letter for leasing?
In leasing, an offer letter could refer to various documents: a lease offer letter or an Employment Offer Letter the applicant’s new employer provides to verify income. A lease offer letter could also be called an apartment rental offer letter if the property is an apartment. A lease offer letter is not the same as a lease agreement, a legally binding document outlining the lease terms between a landlord and tenant, nor is it the same as an application approval letter. Prospective tenants sometimes write offer letters and submit them to a landlord as a starting point for negotiations, while the landlord writes application approval letters.
How do I authorize a tenant?
Many landlord-tenant issues fall under non-negotiable, legally protected tenants’ rights. However, some matters are left to the landlord’s discretion. For instance, a tenant might want to change the property permanently or sublet a room. The landlord can set the terms or deny the request in these cases. If the tenant asks permission to do something prohibited or not covered by their lease, you should document your responses in writing in an Lease Amendment or supplement form to the lease agreement. Be as specific as possible to prevent misunderstandings and protect yourself in the event of a disagreement.
What is the difference between an offer to lease and a lease?
A lease is legally binding, but an offer to lease is not. The final lease agreement will typically be more detailed than the initial lease offer. You could think of a lease offer as a rough draft or proposal. Even if both parties agree to the initial request with no changes, a formal lease is needed to make the arrangement official. Lease offers are more common in commercial settings than for residential properties. Businesses use them to express interest in leasing a property and provide a starting point for negotiations.
