Many of us have had difficulty in rejecting interested rental
applicants for our properties. Without a system to save you from legal
entanglements, wasted time and aggravation, hurt feelings and
embarrassment, you are going to be one unhappy and unsuccessful
Having a legal and effective approval and denial system for your
rental application process is essential if you are going to last in the
Because every situation and applicant is different, it is best to
have more than one method of rejecting an unwanted applicant. Unwanted
applicants can vary in levels of unacceptability.
- Unacceptable (credit or other reasons)
- Unqualified, but can become qualified (co-signer or large deposit needed)
- Qualified, but you have someone else more qualified
The LPA Denial LetterEver have a hard time turning down
applicants because they think it's their right to have your property
because they need or want it? As long as your reasons are legal for
not approving their application, (By not breaking any laws regarding
discrimination, etc.) you should not feel obligated to accept a tenant
you determine is not qualified. For example, your decision to reject an
applicant may be based on income, credit, stable employment, etc., while
it may not be based on a person's race, sex, religion, etc. You can
protect yourself with a denial letter to inform the applicant that
their application was not approved. Check off the appropriate reason(s).
The LPA Denial Letter provides a checklist of 12 reasons to select for the rejection of the applicant. Some of these include:
No applicant is happy to be rejected, but the
when needed, helps you manage your time more efficiently, rather than
being bothered by complaining rejected applicants. It also gives the
applicant a courteous, detailed explanation of why he was declined.
Adverse Action Letter
If you reject an applicant because of negative information on his credit
report, an Adverse Action Letter is needed to comply with FCRA (Fair
Credit Reporting Act) regulations.
The Adverse Action Letter includes the contact information for the
consumer credit reporting agencies that played a role in the decision of
rejecting the applicant based on the contents of his or her credit
This contact information allows the rejected party to obtain a free copy
of his or her credit report from the credit bureau(s) used to make the
negative decision. This form is included in the download of the LPA
The Non-Rejection Rejection One of the methods of not accepting a tenant I also consider is simply rejecting them. From the outset, I feel it is important to make the applicant understand that there are applicants also being considered and that we (management) will make our decision based on the best qualified application.
Isn�t it much easier for a person to accept that they are "still being
considered", even if it is not for this particular rental for which
we�ve already found someone else �more qualified�?
As a Real Estate broker / investor in New York, John Nuzzolese has been
involved with rentals and investment property since 1979. Besides owning
and operating two real estate businesses, he is president and founder
of The Landlord Protection Agency, Inc. , an organization specializing
in helping landlords and property managers avoid the hurdles and
pitfalls and expensive blunders common when dealing with tenants.
More information on The Landlord Protection Agency is available at
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