How to turn down a rental applicant

This guide is for landlords and property managers in Canada and the US. The right way to turn down a rental applicant is a short written message, sent promptly, that thanks them, gives the decision plainly, offers a brief reason tied to the criteria you use for everyone, and names the credit agency if a report played a part. Done well, it takes two minutes to write, protects you if the decision is ever questioned, and leaves the applicant feeling they were treated fairly, even though the answer was no.

Most of the work is in the wording, so here is one message built a sentence at a time, with what each part is for. The example applicant applied for a one bedroom apartment and was turned down partly because of their credit report.

Start with the decision

Thank you for applying for the one bedroom at 24 Elm Street, and for coming to see it on Saturday. We’ve decided not to go ahead with your application.

The decision goes in the first two sentences, not the last paragraph. Applicants are usually still looking at other homes, and the sooner they know, the sooner they can put their energy elsewhere. A thank you is worth keeping, because applying takes time and often money. What’s not worth keeping is a long run-up that makes them read three sentences before they find out.

Send it as soon as you’ve decided, and in writing, by email or through your leasing software, so you both have a record.

Give a short reason, tied to your criteria

We assess every application against the same criteria for income, rental history and credit, and yours didn’t meet our credit requirement this time.

You don’t always have to give a reason, but a short, honest one is usually better than none. It answers the question they’d otherwise ask, and it shows the decision came from a standard, not from them personally.

Tie the reason to criteria you apply to everyone, and keep it general. “Didn’t meet our credit requirement” is enough. A detailed list of what was wrong invites an argument about each point. And never give a reason that points to a protected ground, such as having children, age, disability, religion, nationality or, in many places, receiving public assistance, even indirectly. If the honest reason is simply that another applicant was a better fit, it’s fine to say so: “We’ve offered the home to another applicant.”

If a report played a part, say so

Our decision was based partly on information in a credit report from [agency name, address and phone number]. The agency didn’t make this decision and can’t explain it, but you can ask them for a free copy of your report and to correct anything that’s wrong.

This is the part that’s easiest to leave out, and the one the law is most likely to require.

In the US, the Fair Credit Reporting Act requires an adverse action notice whenever a consumer report contributed to the decision. It must give the name, address and phone number of the agency that supplied it, say that the agency didn’t make the decision and can’t explain the reasons, and tell the applicant they can dispute anything inaccurate and get a free copy of their report within 60 days.

In Canada, provincial consumer reporting laws generally require you to tell the applicant that a credit report played a part and to give them the agency’s name and address if they ask. Including it in the message saves them asking, and gives them a way to fix their report. Reports do contain mistakes, and an applicant can only correct one they know about. How to screen tenants in Canada covers the consent and privacy side of the reports themselves.

Leave the door open only if it’s true

If you’d like us to let you know when we have another one bedroom coming up, just reply and we’ll keep your details on file.

This line is optional. Include it when you mean it, such as when an applicant was a good fit for a different home or narrowly missed out to someone else. Leave it out when you wouldn’t rent to them, because a door that looks open and isn’t is worse than a clear no.

If you keep their details, keep only what you need, and only with their agreement.

What to leave out

Some things don’t belong in the message, however tempting.

• Comparisons with the person you chose, such as “the other applicant earned more”
• Opinions about them, such as “you seemed unsure” or “we didn’t get a good feeling”
• Advice they didn’t ask for about their finances
• Anything you’d be uncomfortable reading out at a tribunal or in court

And don’t argue. If they reply asking you to reconsider, it’s fine to look again if they bring new information, like a guarantor or a correction to their report. Otherwise, a short, polite reply that the decision stands is enough.

The whole message

Put together, the message reads like this.

Hi Sam,

Thank you for applying for the one bedroom at 24 Elm Street, and for coming to see it on Saturday. We’ve decided not to go ahead with your application.

We assess every application against the same criteria for income, rental history and credit, and yours didn’t meet our credit requirement this time.

Our decision was based partly on information in a credit report from [agency name, address and phone number]. The agency didn’t make this decision and can’t explain it, but you can ask them for a free copy of your report and to correct anything that’s wrong.

Thank you again, and good luck with your search.

It’s under 120 words, and every sentence does a job.

After you send it

Keep a record of the application, any report, the reason and the date you replied, for as long as your privacy policy says and no longer, then delete it securely. If the decision is ever questioned, a record showing the same criteria applied to everyone is your best answer.

And use the same message for everyone you turn down for the same reason. Consistency keeps the decision fair, and it makes the next one quick to send.