Under federal law, a landlord does not have to explain a denial, but must send an adverse action notice when a screening report played any part. Several states go further and require the reasons in writing: Oregon within 14 days, Colorado in good faith within 20 days, and Washington in a set format. This is information, not legal advice.
What does federal law require when you deny an applicant?
Federal law requires a notice, not a reason. The FTC's guidance for landlords, July 2023, says that if you reject an applicant, raise the rent or deposit, or require a co-signer based partly or completely on a consumer report, you must tell the applicant. The notice names the screening company, says that company did not make the decision, and explains the right to dispute the report and get a free copy within 60 days.
The FTC adds that the notice is required even if the report played only a small part. If a credit score was used, the notice also carries the score, its range and its key factors. Our guide to the adverse action notice walks through each part.
What the federal rule does not require is your reason. A notice can be fully compliant and still leave the applicant guessing why.
Which states require a landlord to give the reasons?
Oregon, Washington and Colorado are three clear examples, each with its own clock or format.
Oregon is the most detailed. Under ORS 90.304, a landlord who denies an application after applying screening criteria must give a written statement of one or more reasons within 14 days. A form with boxes checked is allowed. The statement must name any screening company whose report was used, any supplemental evidence the applicant gave and why it was not enough, and any right to appeal. Missing the rule costs $100 per applicant.
Washington sets the format. RCW 59.18.257 requires a written adverse action notice that states the reasons, in a statutory form that marks the application rejected or approved with conditions, and checks the source: a consumer report, rental history, a criminal record, a civil record or employment verification. Breaking the screening notice rules can cost up to $100 plus court costs and attorney fees.
Colorado adds a copy. Under C.R.S. 38-12-904, a denial needs a written notice stating the reasons, plus a copy of any consumer report and the right to dispute it, sent in good faith within 20 calendar days. Email is fine unless the applicant asks for paper.
What should a rental denial letter say?
One letter can satisfy the federal rule and the strictest of these states at once if it carries five things:
- The decision: denied, or approved with conditions such as a co-signer or a larger deposit.
- The reason, matched to a written criterion: income, rental history, credit, or the unit already rented.
- The screening company's name, address and phone number, and that it did not make the decision.
- The right to dispute the report and to a free copy within 60 days.
- Any supplemental evidence the applicant sent, and why it did not change the outcome.
Keep a copy with the file. Our post on how long to keep rental applicant records covers how long.
Where does this go wrong in practice?
In the silence. An applicant who hears nothing for two weeks writes back, then calls, and someone answers off the cuff with a reason that is not on the written criteria. That one improvised sentence is the record a fair housing complaint is built on. The fix is a denial letter sent the same day as the decision, with the reason drawn from the criteria you published.
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Rental denials: FAQ
Can a landlord deny an application without a reason?
Under federal law, yes, as long as the adverse action notice goes out when a report was used. In Oregon, Washington and Colorado, no: the reasons must be in writing.
Is "the unit was already rented" a valid denial reason?
Yes. Oregon's statute lists it among the reasons a landlord may check. Make sure your process for choosing between qualified applicants is written down and applied the same way each time.
How long does a landlord have to send a denial notice?
Federal law sets no fixed deadline; send it with the decision. Oregon allows 14 days and Colorado asks for a good faith effort within 20 calendar days.
Can a denial notice be sent by email or text?
Federal law allows written, electronic or oral notice, though the FTC calls written the best practice. Colorado allows electronic unless the applicant asks for paper.
