Applicant denial question

[Daniel Lehman]

Do I need to tell every applicant why they're denied? Thus far I just tell applicants that don't get chosen something along the lines of "Thank you for applying, however, we have decided to move forward with a different applicant at this time."

I rarely ever get asked why; in fact, I usually don't even get a response from them when I tell them that.

Am I obligated to tell everyone that applies why they didn't get chosen even if they don't ask or even reply to not being chosen? I live in the state of NY.

[Joe Splitrock]

Quote from @Daniel Lehman:

Do I need to tell every applicant why they're denied? Thus far I just tell applicants that don't get chosen something along the lines of "Thank you for applying, however, we have decided to move forward with a different applicant at this time."

I rarely ever get asked why; in fact, I usually don't even get a response from them when I tell them that.

Am I obligated to tell everyone that applies why they didn't get chosen even if they don't ask or even reply to not being chosen? I live in the state of NY.

 In the absence of providing a reason, the applicant may believe they were wrongly denied or discriminated against. For that reason, I am transparent with the tenant about why they were denied. My personal opinion is that if someone pays money to apply to rent my property, offering the courtesy of telling them why they were denied is reasonable. 

Even if you don't provide a reason, you should always document a reason. You also need to ensure you are fairly applying your approval criteria. For example, if you deny one applicant for 625 credit score, then approve another with 600 credit score, that can appear discriminatory. Telling people you "decided to move forward with a different application at this time" assumes you had a different applicant that was more qualified. I would only state this as the reason if it was true. For denials where you have not accepted another applicant, tell them they didn't meet approval criteria. I would also document how the chosen applicant was better qualified than other occupants. 

The reason you want to document these things is to dispute discrimination charges. You want to be able to cite specific reasons where someone didn't meet your criteria. 

There are some situations where you may be legally required to provide a reason. Some states may require you provide a reason if asked. Federal credit protection laws require a denial letter stating it is based on credit if you pull the credit report (versus tenant pull and share). Check state laws.