An approval letter moves a rental from screening to signing. It congratulates the applicant, restates the essential terms (rent, deposit, term, move-in date), and, most importantly, sets a deadline: sign the lease and pay the deposit by a fixed date or the unit goes to the next applicant.
The letter protects the landlord as much as it informs the tenant. Until a lease is signed, an approval is an offer, and the letter should say so explicitly, because an approval letter is not a lease and should never read like one.
What the approval letter should state
- The unit and the application date being approved
- Monthly rent, security deposit, lease term, and move-in date
- Any conditions: proof of insurance, co-signer, first month's rent at signing
- A firm deadline to sign the lease and pay the deposit
- A statement that no tenancy exists until the lease is signed
Do not hand over keys before the lease is signed
An approved applicant who moves in without a signed lease becomes a tenant with rights and no written obligations. Keep the sequence strict: approval letter, signed lease, deposit and first rent collected, then keys.
Holding the unit between approval and signing
Some landlords collect a holding deposit to take the unit off the market while the lease is prepared. If you do, document it separately and carefully: state whether it is credited toward the security deposit at signing and what happens if either side walks away. Several states regulate holding deposits, including what may be retained if the applicant withdraws. The simpler path for most small landlords is a short signing deadline, which is what this letter provides.
Approve on consistent, documented criteria
Approval letters are the happy path of a screening process that must be consistent to be safe. Apply the same income, credit, and reference standards to every applicant for the unit, keep the applications and your notes, and send approvals and denials on the same timeline. Consistency is the practical defense to fair housing complaints, and it starts with using the same written forms for every applicant.
Frequently asked questions
Is an approval letter legally binding?
No. It is an offer to lease on stated terms, and this template says explicitly that no tenancy exists until the lease is signed and the deposit paid. Either side can still walk away before signing, subject to any holding deposit arrangement.
How long should I give the applicant to sign?
A few days to a week is typical: long enough to arrange the deposit and review the lease, short enough that the unit is not held off the market for an applicant who has gone quiet.
Can I approve with conditions?
Yes, and conditions are common: a co-signer, a larger deposit where state law allows, proof of renter's insurance, or verification documents. State each condition in the letter so the approval and its requirements are documented together.
What if the applicant does not sign by the deadline?
The letter reserves your right to offer the unit to the next applicant after the deadline. Send a short written note that the approval has lapsed, then move on. Keeping the paper trail closes the loop cleanly.
Should I notify the other applicants?
Yes, once the lease is signed. Applicants denied in favor of another tenant should receive a denial letter, and if a consumer report influenced any denial, the FCRA adverse action notice requirements apply to it.