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Stephen White here and we're going to be talking about how to properly deny your tenant applicant. So if you have somebody that is clearly a thumbs down, we're going to show you the legal way to let them know that you're not going to be renting to them. So a lot of questions that we get are how to actually deny them properly, how to deny them legally. If you ran a background check on them, so that means if to're basing your decision on credit, criminal, evictions, even a previous landlord reference. I'll say that their previous landlord says they were terrible and can't pay their rent, and somehow you don't want to rent to them. The proper way to do this is to use an adverse action letter. And if that sounds familiar to you, it's because it's the same method that everybody in the credit industry uses. Most commonly you'll see it being used in department stores like Macy's or JC Penney's. Of course their sales associates aren't equipped to counsel people on credit. So if somebody at the counter fills out a credit application, and it gets denied, they'll often tell you that a letter will be sent in the mail explaining why. Much the same for landlords, if you deny a tenant, you can obviously tell them they're going to be receiving a letter in the mail or some correspondence explaining why and that letter is what's called an adverse action letter. The letter can be found, we have three different templates for free on our website. And the different choices that you have, you've got a generic template, and you have some options to give them the reason why you denied them. My personal advice would be to go with the generic template. You don't want to open that can of worms with an applicant discussing the reasons why you're going to deny them. Legally you're only obligated to let them know that they were denied. Leave it up to the background check company to explain the details. So on the generic template it'll explain that they've been denied, and it was due to some information that was found to conducting investigation or a background check, and it will of course deflect any questions that they have to the background check company and leave you, the landlord, to be able to spend your valuable time and energy finding good tenants and not wasting it on the tenants that you know you're not going to rent to. To get access to the free forms, the adverse action forms and lots of other great stuff, check out our free resources on the site and of course subscribe to our channel, so you can stay up to date on all things land lording, tips and advice. We'll see you there.
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