Do You Provide a Rejection Letter for Declined Applicants?

Question

Any opinions...this would be in the instance there are multiple applicants for a single property and only one is chosen...

Steve Babiak · Answer

OK, this is a matter regarding the Fair Credit Reporting Act (FCRA). Because of that word "Credit" there, people think it only pertains to credit reports. But if you actually read the FCRA, it covers all third party sources of information, so if you get eviction or criminal reports from a third party rather than getting those from the courthouse yourself, then the FCRA applies and a letter complying with the provisions of the FCRA is in order.

Also, people think a letter is only required when they reject or decline somebody, but the FCRA requires that information be given to the applicant for any any adverse action. So those who need more info than they've asked of other applicants, those who require a co-signer / guarantor, those who require a bigger deposit - all fall into "adverse actions" ...

Jesse T. · Answer

If your process is to go in the order received and selecting the first acceptable candidate, then you can simply return the application fee and state that the property has been rented.

If you processed a candidate and they were rejected for non-credit reasons, I think you can go with a generic "your application was processed, but you were not selected". If it was due to credit, there are requirements for informing the applicant.

If you try to select the best from a group of candidates, then your notification will be a little more difficult.

Steve Rozenberg · Answer

YES YES YES.. Very important to keep you out of trouble with Fair housing and discrimination suits

Brandon Sturgill · Answer

@Steve Babiak thanks for the education. Much appreciated.

Stephen Collins · Answer

I provided a letter to each applicant that applied. I purchased a book at Barnes & Noble, I believe it was called "NOLO Forms a Legal Guide for Landlords". It broke down the laws of each state. I tailored their lease form for the tennant I accepted, and used their template for each tennant I rejected. I also saved all the rejection letters.

Michael Noto · Answer

As far as a formal letter goes, the only time we issue a formal letter of denial is if the denial was credit based.

Also something else to keep in mind is if you have an income requirement (hopefully everyone does!) check the applicants paystubs/income BEFORE you run the background check. This way you can just deny them on those grounds before you run their background and essentially waste their money.

Cal C. · Answer

I do not reject anybody. If they ask, I simply tell them I'll be glad to rent to them once they ...

Brandon Sturgill · Answer

@Stephen Collins @Steve Rozenberg @Jesse T. Thanks, gentlemen.

Do You Provide a Rejection Letter for Declined Applicants?

Do You Provide a Rejection Letter for Declined Applicants?

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