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What Disqualify Tenants

When you get a tenant apply that you dont like or want what do you say to them? How do you disqualify them. What is your process of screening and qulifications? How do you say no to someone? I had someone that wanted my place. A nice person that i felt could not afford it. Thier credit was terrable. There amout of bills and debt were through the roof. What do you say to a person like that?
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I use a letter, that states their application was denied and if it was for credit, or income to debt ratio I would state that.
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