Correct verbiage for turning down applicants

[Justin C.]

Hello BP, I've had a busy week showing our SFH and accepting rental applications. I have 3 applications... 1 solid one that I would love to have and who would be perfect. The other two I honestly dont feel would be the best for the house. One guy has 2 German Shepherds; its a relatively small place with a small yard, he travels and would have a roomate stay with him, in a band and has a lot of musical equipment, etc... and the other couple asked me about house parties, smoking, and how many people I would allow to say in the house at any given time. Needless to say, I'm not thrilled with either of the last two. I am only going to run the 1st applicant as shes my primary candidate. Assuming she passes, do I need to run the other two in order to not discriminate or can I simply say I've found a tenant and the home is no longer available. Then return their money. Or do I even need to return their money? I'm probably over thinking this but if you could provide some guidance I would be very much appreciative.

Thanks in advance