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Not selected Applicants

Should I email Applicants that were not selected as tenants and explain why?

Yes, as a courtesy, you should but there is no need to explain why. I usually just write - Thank you for your application to rent (address). Unfortunately your application has been unsuccessful. Sincerely..... If they ask why you can say you had a more qualified applicant. Never give a reason other than that to avoid  accusations of discrimination.
You do not have to, but it is nice to. Most of the time, a phone call is enough but I can understand wanting to do it through email instead. You do not owe them reasoning, remember that.
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