An application denial letter is one of the most important landlord forms. As a responsible landlord, it is not only important to tell potential tenants that they have been accepted, it is also important to let rejected candidates know that they have not been accepted. When writing a rental application rejection letter, it is important to carefully word the letter to avoid potential liability. LandLordStation.com recommends that you do your research and make sure that your rental application denial is not based on rejection of protected classes.
First off, if you show your property to several prospective tenants, be sure to keep a list that includes the name of the potential tenant as well as the date and time the property was shown. That way you have a record in writing that can be shown to an enforcement agency, if necessary, when you have sent an application denial letter. If you require a check to cover your expense of tenant screening by LandLordStation.com, you can include a copy of the receipt for that screening with your application denial letter. If you have taken a check to hold the property, you must return the uncashed check with the rental application letter. You can store your showing list in your LandLordStation.com property vault at no charge.
Any rental application denial cannot be for any reason stated in the Federal Fair Housing Law. It is recommended that you obtain a copy of that law so that you are familiar with the protected classes named in that law. To see this law from the Department of Justice click here. These classes include race, sex, handicaps and more as protected classes from rental application denial.
When you issue an application denial letter, what should you tell the rejected parties? You can advise potential tenants, at the time of showing, that there are other applicants ahead of them and that you are going to lease to the first qualifying applicant. Then when you write your rental application rejection letter, you can advise the potential tenant that they were rejected because a qualified tenant was in line before them. This does not always protect from all potential liability but is the choice of many property managers. You must familiarize yourself with your rights as a property owner in this situation. If they are a qualified candidate and you have other properties in the area, you can use a rejection letter to offer other properties that the prospective tenant might be interested in viewing.
What items can be mentioned in an application denial letter? In most jurisdictions, you can mention an incomplete application, an instance of inaccurate or false information or inability to verify information provided by the rental applicant. A rental application rejection letter can also be sent because of insufficient income or debt to income ratio to meet your qualifying standard, insufficient employment history and poor or absent credit history. There are other reasons you can do a rental application denial but all of the reasons can expose you to liability so you must do your due diligence with respect to wording of an application denial letter.
You can get a variety of information regarding the credit check of eligibility of a potential tenant from LandLordStation.com. The information we obtain for you in our tenant screenings is reliable and legal to obtain.
If you have any questions at all regarding your application denial letter, be sure to check with an attorney. Visit the LandLordStation.com website and click on the “Community” button at the top of the page and you will find on-going discussions with leaders in the real estate management community regarding this issue. If you don’t see information that answers your question, you can ask the Community your question at no charge. This is a unique and invaluable service that LandLordStation.com provides our customers. For the best information on landlord forms, visit LandLordStation.com.
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