More Qualified Applicants Than Available Apartments -Help

[Jerald A Wilks]

I have a nice problem - more applicants than available apartments. I am looking for thoughts on some ways to handle the applicants that are qualified but not as qualified as the ones getting the two apartments. I have three that fall into this category. 

Should i just let them go? Hate to do that. Should I create a wait list? This sounds good but is it really effective. Or??

Your thoughts and experiences would be appreciated.