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An application can be denied for a multitude of reasons, some listed below. There are edits that need to be made to an application once it's denied. An Adverse Action Letter explaining the reason for denial sent through AppFolio. If the application is denied prior to running the screening report, the application fee can be refunded. This will all be exampled on this page. To find all of your received Rental Applications go to the Leasing tab, then Rental Applications.
Denied Application after Running the Screening Report
Denied Application after Running the Screening Report
On the righthand side of the application screen under Tasks, there is a Generate Denial/Adverse Action Letter task. This can send the applicant the reasoning for denial. Before you send the letter, you need to make sure the application is in Denied status in 2 places. One is under the Applicant Summary and the other Preliminary Screening Result page. The Screen Now button under the Screening Reports heading is how we tell AppFolio to run the credit and background check for an applicant.
To get to the Preliminary Screening Result page, click on the View Preliminary Results button under Screening Reports. This will show after you've hit the Screen Now button.
1. Recording Denied Decision
2. Recording Decision Pop Up after clicking the task
3. Denied Status in Application Summary
Denied Application before Running the Screening Report
Denied Application before Running the Screening Report
After you've changed the status of the application under Application Summary, you can follow the below steps. If it's decided prior to running the screening report the applicant will be denied, you can refund the application fee in the received application.
The refund will be processed and returned to the account or card they paid the application fee on.
IF YOU NEED any help with this, or are unsure of these steps, reach out to anyone in management to walk the process through with you.
Sending the Adverse Action Letter
Sending the Adverse Action Letter
Once you have denied the application under the Application Summary and in the Preliminary Results, you can send the Adverse Action Letter. To send the letter, on the righthand side of the application under tasks, click Generate Denial/Adverse Action Letter.
A pop up will come up where you'll enter the reasoning for the denial and give you the option to download and publish the applicant's portal. The below shows all possible Other Reasons for Denial. This is not necessary, but an option if the reason is missing from the checkboxes above. You do need to pick at least one of the boxes from the Credit History, Rental History, or Criminal History options.
The Publish to Portal sends a copy of the Adverse Action Letter to the applicant chosen. The Download button downloads a copy of the letter to your computer to email or save for your files if you choose. It's better to keep a copy just in case the applicant requests a copy separate from when you send it to them through this function.
Example of an Adverse Action Letter
Advere Action Letter Example.pdfReasons an Application Could be Denied
Reasons an Application Could be Denied
Credit score lower than 620
Felonies or other unacceptable criminal history from a background check
Prior Evictions
Vulgar or rude behavior when talking with the property manger
No rental history
Unable to prove they make or does not make 3 times the monthly rent
Cannot provide proof of US Citizenship (International individuals are welcome with the consent of the owner. See your supervisor for how to process this.)
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