The LPA Denial Letter & Adverse Action Notice
The LPA Denial Letter makes rejecting an applicant easier...
while the Adverse Action Letter legally protects you if the applicant is rejected because of information from their credit report.
Ever rent to a tenant because he was pushy, and you couldn't say NO?
Ever have a hard time turning down applicants because they think it's their right to have your property because they need or want it?
Well, sometimes people take it personally and find it difficult to understand that they may not be qualified enough to rent your property. As long as your reasons are legal for not approving their application, (By not breaking any laws regarding discrimination, etc.) you should not feel obligated to accept a tenant you determine who is not qualified. For example, your decision to reject an applicant may be based on income, credit, stable employment, etc., while it may not be based on a person's race, sex, religion, etc.
So, protect yourself with a denial letter to inform the applicant that their application was not approved. Check off the appropriate reason(s).
In certain cases, a deposit may be forfeit. Often an applicant will hold a rental with a deposit for an extended period of time and then change his mind about it. He always expects his deposit back, even if you are losing rent as a result of his failure to rent as agreed in the application. A copy of the signed Application to Rent along with the Denial Letter tell it like it is.
No applicant is happy to be rejected, but the Denial Letter when needed, helps you manage your time more efficiently, rather than being bothered by complaining rejected applicants. It also gives the applicant a courteous, detailed explanation of why he was declined.
If you reject an applicant because of negative information on his credit report, an Adverse Action Letter is needed to comply with FCRA (Fair Credit Reporting Act) regulations. We decided to make sure you are prepared both scenarios.
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