How to politely reject a tenant application?

Question

Hello,

How to politely reject  a tenant application?

Thanks

Nathan Gesner · Answer

If you are failing them based on their credit, you are required by law to provide them with an "Adverse Action" letter. Your screening system should provide that for you.

For all other rejections, a simple letter that is generic and professional will work fine. I don't even list the specific reason for their rejection.

"Dear Applicant, I'm sorry to inform you that your application did not meet our criteria at this time. We wish you the best in your endeavors."

Scott M. · Answer

The polite way to do it is to be factual.  You do not meet our posted criteria (hopefully you supplied them with this info prior) in the following way(s).  Then list the ways.  You can let them know over the phone but you should follow up with an email.  Whatever software you used to run the checks should have an adverse action letter you can send.

Eugene Khoruzhenko · Answer

What if I have several applicants for the same property? They submit their background/credit check applications at different times and I receive the results out of order. Can I select the applicant with best credit/income scores, willing to lease for longer period, etc. business factors? Or it must be in an order the applications are received? Or I have to pre-select only one applicant to go through application process? If their check scores are low, I would not want to lose the other applicants - not sure what the right process is. Thanks

Dave Spooner · Answer

@Peter Morgan I agree with others on this thread, but just to directly address something that everyone is referencing, it’s critical that you reject the tenant in a manner that does not violate Fair Housing Laws. You need to be consistent in the things that cause you to reject an applicant, be factual, and ensure all of those items are legal within your municipality.

Lynnette E. · Answer

If they apply and no acceptable applicant applies in the same week or so I tell them that they did not meet the qualifications, and if pushed exactly what qualifications.

If someone who is qualified applies at the same timeframe I just tell them, sorry there were other qualified applicants and I chose another one.

Adam Martin · Answer

Keep it short, sweet, and avoid specifics.  I usually rent pretty quickly and am able to send a simple text stating that I have gone for another applicant and have taken a deposit, this usually ends it really quickly.  This is a case of whatever you say can and will be used against you.  That's usually where I end it and most of the time I get a simple thanks anyway or just no response.  Occasionally you will have a fighter but I just don't respond.  I avoid doing it over the phone since this is a statement not a conversation.  Usually people that get rejected know why without you telling them but the last thing I want is them trying to twist my words on me later or trying to change my mind, it is made up.

Ashley Herring · Answer

I agree with both @Peter Morgan and @Scott M. You cannot be afraid to tell them as there will be many more in your adventure as a landlord. If you don't like this part of investing, I recommend hiring a PM company to find a tenant and you pay them a commission so they can handle this part for you.

Jeffrey Donis · Answer

@Peter Morgan I agree with @Scott M.. Just let them know the reasons they do not qualify. They shouldn't be offended, especially if you explained the requirements beforehand.

How to politely reject a tenant application?

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