A rental application denial letter is a formal document sent by a landlord or property manager to inform an applicant that their lease application has been rejected.
This letter is typically issued after reviewing a negative consumer report, detailing the reason or reasons why they do not accept the applicant as a renter. The denied applicant can formally request a copy of the report by submitting a written request to Equifax, Experian, or TransUnion within 60 days.
Valid Reasons to Reject a Tenant
A denial letter explains why an applicant was not chosen as a tenant. Here are common reasons for rejection:
- Low Gross Income: Income should be at least three times the rent.
- Incomplete or Inaccurate Application: Missing or incorrect information can lead to rejection.
- Poor Credit: A low credit score or bad credit history is a frequent reason for denial. Under federal law, applicants have the right to receive copies of their credit reports and dispute any inaccuracies.
- Miscellaneous Reasons: Previous evictions or negative references from past landlords can result in rejection.
If you base your decision on the results of a consumer report, the Fair Credit Reporting Act (FCRA) legally requires you to notify the applicant.[/lt_tip]
Illegal Reasons to Deny a Tenant Application
Familiarize yourself with federal, state, and local regulations to avoid discrimination and ensure transparency. According to the Fair Housing Act, rejecting a tenant application based on the following factors is illegal:
- Race
- Color
- National origin
- Religion
- Sex, gender identity, or sexual orientation
- Familial status
- Disability
Arbitrary discrimination, such as refusing to rent to applicants based on how they dress or for having tattoos, is also illegal.
Necessary Elements to Include in a Denial Letter
A standard denial letter typically includes the most common reasons for denying a tenant application. Tailor the letter to your specific case, such as checking boxes for insufficient income and a negative credit report.
- Common Reasons: Clearly state the reasons for rejection. You can check multiple reasons, such as lack of sufficient income and poor credit history.
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Consumer Reporting Details: If a negative consumer report contributed to the rejection, include:
- CRA Information: Name, address, and contact number of the Consumer Reporting Agency (CRA) that provided the report.
- Decision Attribution: A statement clarifying that the CRA did not make the decision, only supplied the report.
- Dispute Rights: Inform the applicant of their right to dispute inaccuracies or incomplete information in the report and their right to request a free report from the CRA within 60 days.
- State Laws: Some states require landlords to provide rejected tenants with a copy of their credit report or score.
Do You Have to Tell Rental Applicants They Are Denied?
How to Write a Lease Application Rejection Letter
Follow the steps below to fill out your form easily:
Step 1 – Enter Sender’s Information
Provide the sender’s (e.g. landlord or rental property management company) full name and current address.
Step 2 – Fill Out the Date
Write the date of the application rejection letter.
Step 3 – Add the Recipient’s Information
Provide the full name and current address of the recipient, the applicant.
Step 4 – Enter the Property Address
Provide the complete street address of the rental property.
Step 5 – Provide a Reason
Select the reason(s) the landlord or manager denied the rental application or enter any other reasons not already provided.
Step 6 – Enter the Landlord’s Contact Information
Provide the landlord’s phone number and email address.
Step 7 – Sign the Letter
The landlord needs to sign the denial letter.
Rental Application Denial Letter Sample
You can download a rental application denial letter template below in PDF or Word.
