Introduction: As a landlord, denying a rental application is an unfortunate but sometimes necessary part of the job. However, communicating that denial to the applicant can be a difficult and uncomfortable task. In this guide, we’ll walk you through how to deny rental application, from reviewing the application to communicating the denial to the applicant. We’ll provide you with easy scripts to use in each step, so you can communicate the denial in a professional, courteous, and legally compliant manner.
How to Deny a Rental Application
Review the Application
Before denying an application, it’s important to review the applicant’s information carefully to ensure that the denial is legal and justified. This includes checking the applicant’s credit score, rental history, and income. If you find any red flags or inconsistencies, you may want to ask the applicant for more information before making a decision.
It is crucial to ensure that you are compliant with non-discrimination laws when denying a rental application. Discrimination can occur based on a variety of factors, such as race, gender, religion, national origin, familial status, and disability status.
The Fair Housing Act (FHA) prohibits discrimination on the basis of these factors, and it is important to make sure that your denial of a rental application is not based on any of these protected characteristics. Keep in mind that even seemingly neutral criteria, such as credit score or income level, can have a disproportionate impact on certain protected groups. To stay compliant with the law, it is a good practice to establish objective, non-discriminatory criteria for rental approval and denial, and to apply those criteria consistently to all applicants.
Prepare for the Conversation
Once you’ve reviewed the application and made a decision, it’s time to prepare for the conversation with the applicant. Make sure you have all the necessary information and documentation ready, including the adverse action letter (if required by law). Be prepared to answer any questions the applicant may have, and to provide specific reasons for the denial.
Communicate the Denial
When communicating the denial, it’s important to do so in a professional and courteous manner. Here’s a sample script you can use:
“Dear [Applicant Name],
Thank you for your interest in our rental property. After careful consideration, we have decided not to move forward with your application. Unfortunately, we cannot approve your application at this time. We understand that this news may be disappointing, but we want to assure you that this decision was not made lightly.
The reasons for the denial are as follows [list specific reasons for the denial]. We understand that this may be frustrating, but we must make decisions based on our rental criteria and our obligations under the law.
If you have any questions or concerns, please feel free to contact us at [Landlord Contact Information]. We wish you the best of luck in your future housing search.
Sincerely, [Landlord Name]”
Provide an Adverse Action Letter
If required by law, you will need to provide the applicant with an adverse action letter, which outlines the specific reasons for the denial and the applicant’s rights under the law. Here’s a script you can use:
“Dear [Applicant Name],
As required by law, we are providing you with an adverse action letter explaining the reasons for the denial of your rental application. After careful consideration, we have decided not to move forward with your application. The reasons for the denial are as follows [list specific reasons for the denial].
Under federal law, you have the right to obtain a free copy of your credit report from the credit reporting agency that we used to evaluate your application within 60 days. You also have the right to dispute any inaccurate information on your credit report. If you have any questions or concerns about the information contained in this letter, please feel free to contact us at [Landlord Contact Information].
Sincerely, [Landlord Name]”
ScreenRenters Makes it easy!
ScreenRenter’s tenant screening service offers landlords an efficient and convenient way to handle rental applications. With the landlord dashboard, landlords can easily manage and track applications, as well as accept or deny applicants with just a few clicks. If an applicant is denied, ScreenRenter’s service automatically generates and sends an adverse action letter to the tenant, ensuring compliance with legal requirements. By using ScreenRenter’s tenant screening service, landlords can save time and feel confident that they are following the proper procedures when denying an application.
How to Deny a Rental Application
Denying a rental application is never easy, but it’s important to do so in a professional and legally compliant manner. By following the steps outlined in this guide and using the sample scripts provided, you can communicate the denial in a way that is respectful, informative, and legally compliant.
