Although the ultimate goal of any landlord is to put a renter into a property, there are some times when it’s just not the right fit. Not every applicant who wants to live in your rental is going to work – whether it’s because you have too many applicants or a renter has a less-than-stellar record. When this happens, you’ll find yourself having to prepare a rental application denial letter.
It may feel daunting to have to write this type of letter, but it doesn’t have to be. In this Redfin article, we’ll guide you through the process. Whether you’re a landlord renting a home in Miami or a property manager renting apartments in Los Angeles , find out how to write a rental application denial letter that conveys the right message.
Writing a denial letter can feel stressful, because you’re having to let someone down. Your letter should have a professional and informative tone, covering exactly why you’re denying their rental application. Include as many specifics as possible, such as:
Don’t forget to thank them for applying and let them know you feel bad about having to say “no.” You can include phrases like, “We regret to inform you,” to help soften the rejection.
Some rental application denial letters will feel like you’re filling out a form. They’ll list all the possible, legal, reasons to deny a renter, and let you check the boxes. This does save time, but it’s often impersonal and can turn prospective renters away from re-applying in the future.
If you can, take the time to make it a little more personal, and a little less formulaic. Try out this template instead.
(Applicant’s full name)
(Address of rental property)
RE: Rental application review
Dear (Applicant’s name),
Thank you so much for submitting your rental application for (Property Address.) I’ve had time to review it and sincerely regret to inform you that it was not accepted at this time.
The decision was made based on (fill in as many specifics regarding the reason why you denied the application such as low credit score, income concerns, the property is no longer available, issues with rental history, etc.)
I understand this is not the news you were hoping to hear. Should you have any questions regarding your rental application status, please don’t hesitate to reach out to me directly at (your phone or email.)
You may also want to consider (insert any advice, if applicable to help them out the next time such as offering up a co-signer, seeking rentals more in their price range, etc.)
As a landlord, you most likely want to rent to a tenant who will respect your property and take good care of it. However, you can’t reject a potential tenant based on their personality alone. The Fair Housing Act restricts the reasons landlords can reject someone’s rental application . You must adhere to these regulations to prevent any legal recourse.
Under the Fair Housing Act , a rental application denial letter can’t be served on the basis of race, color, national origin, religion, sex, familial status, or disability. This prevents housing discrimination and reverses housing segregation.
You’re also not allowed to deny a renter’s application based on their criminal record, unless there are dangerous criminal convictions that could put people, and your property, at risk. In other words, a DUI is not grounds to deny a potential renter, but getting convicted of arson most likely is. If you’re unsure about what is considered a “dangerous criminal conviction,” you can always speak to a lawyer.
In addition to a dangerous criminal conviction, there are several other legal reasons why you can reject a potential tenant’s application.
It’s common practice for a landlord to run a credit check on every applicant. If the potential tenant’s score is too low, then you can reject their application. Since a credit score is often indicative of an applicant’s financial history, a low number could mean they don’t pay their bills, including rent. It’s up to you whether you allow them to bring in a guarantor or co-signer to help get their rental application approved. You may also consider asking for a credit reference , which may give you additional information about the applicant’s creditworthiness.
A prospective tenant’s finances are also a major concern for landlords. Not only does an applicant need to have enough funds to cover all the upfront costs – first and last month’s rent, security deposit, etc. – but they need enough income to pay the rent each month along with their other bills. Many landlords ask that their renters make a specific amount annually. The standard ask is three times as much income as rent costs to ensure rent is paid. In some areas, the ask may be even higher.
Looking at a potential tenant’s rental history report may also raise some red flags that could lead to a rental application denial letter. Situations like prior evictions , records of unpaid rent or fees, bad feedback from previous landlords, and proof of previous property damage can be reasons to reject a rental application. You need to protect your property, so it’s best to be hesitant when issues like these arise.
When reaching out to references such as former landlords, employers, or others, you may receive a wide variety of responses. If the applicant’s references provide negative feedback, this can be a reason to reject their application.
If a potential tenant lies on their application or omits information, you also have grounds to deny them tenancy. Either they’ve falsified the information you need to approve their application, or they simply didn’t give you enough. As a result, those are two major reasons to write a rental application denial letter.
When demand is high for a specific property, you may get more rental applications than you actually need. Evaluating them on a first-come, first-served basis, you may fill the vacancy quickly. It’s polite to send a letter out to the other applicants letting them know the property is no longer available. It’s another example of when it’s legal to tell an applicant “no” in regards to renting your property.
If you are represented by an agent, this is not a solicitation of your business. This article is for informational purposes only, and is not a substitute for professional advice from a medical provider, licensed attorney, financial advisor, or tax professional. Consumers should independently verify any agency or service mentioned will meet their needs. Learn more about our Editorial Guidelines here.
Alison is part of the Content Marketing team as a Content Marketing Specialist. In her 4 years at Redfin, Alison has written a variety of articles ranging from home design tips to housing affordability. A California-native, Alison currently resides in Seattle where you can find her catching a concert or exploring farmers’ markets. Her dream home is a cottage-style house with a chef’s kitchen and a cozy room to store and play vinyl records.
