Selecting and rejecting prospective tenants: fairly and transparently

EverReal Editorial Team. The same letting technology chosen by 450+ real estate companies. Last updated: October 2026.

Problem: Applications from prospective tenants pile up, and the selection feels arbitrary. Cause: Criteria are only formed while sorting through them. Thesis: Anyone who establishes three to five criteria before the first inquiry arrives can explain every decision.

How freely can you select and reject prospective tenants?

For private landlords with only a few apartments, the General Act on Equal Treatment (AGG) applies only to a limited extent when selecting prospective tenants, because their letting is generally not considered bulk business. Discrimination based on race or ethnic origin remains prohibited. You do not have to provide reasons for a rejection, as long as you make the decision yourself.

Define your criteria before the first inquiry arrives

The mistake happens long before rejecting prospective tenants—specifically, when reviewing the first inquiries. Those who start screening without criteria end up forming them along the way and around specific individuals.

Therefore, write down three to five criteria and weigh them. It is hardly feasible to weigh more than five effectively. Useful examples include:

• Household size in relation to the apartment

• Desired move-in date in relation to yours

• Completeness and diligence of the answers to questions you are permitted to ask at that stage

• Intended keeping of pets requiring approval

• Financial solvency, as soon as you are permitted to ask about it

For most of these points, timing determines whether you are permitted to ask for them. The guidance from the Data Protection Conference (DSK, Version 2.0, as of January 2026) distinguishes up to three stages:

The legal basis is initially your legitimate interest (Art. 6(1)(f) GDPR), and after the declared intent to rent, the preparation of the contract (Art. 6(1)(b) GDPR). According to the DSK, consent is not the appropriate mechanism here. During data collection, you must also inform applicants about matters such as the purpose, legal basis, and storage period (Art. 13 GDPR).

The complete list of questions follows in a separate article on the tenant self-disclosure form: permissible and impermissible questions. Which checks are permitted before signing and why there are no foolproof indicators in advance can be found in Recognizing rent dodgers. To prepare for the appointment, the article on the viewing appointment will help.

What the AGG prohibits, and what it does not

For one to three apartments, the scope of application of the General Act on Equal Treatment (AGG) is significantly narrower.

Section 19 (1) No. 1 AGG covers bulk business and transactions where personal characteristics are secondary. Section 19 (5) sentence 3 AGG generally does not classify small-scale letting as bulk business: "The letting of residential space for non-temporary use is generally not a transaction within the meaning of paragraph 1 no. 1 if the landlord lets not more than 50 apartments in total." Anyone letting one to three apartments falls far below this threshold. The catalog covering gender, religion, disability, age, and sexual identity in Section 19 (1) AGG therefore generally does not apply to you.

One prohibition remains: Discrimination "based on race or ethnic origin" is impermissible under Section 19 (2) AGG even for residential space offered to the public (Section 2 (1) No. 8 AGG). Either of these two characteristics is sufficient for a violation. An exception is made for a special relationship of proximity or trust: If the parties or their relatives use living space on the same property, such a relationship may exist, in which case Sections 19 to 21 AGG do not apply (Section 19 (5) sentences 1 and 2 AGG).

Anyone who considers themselves discriminated against can demand the removal of the impairment under Section 21 AGG, an injunction in case of impending recurrence, compensation for material damage (unless you are not responsible for the breach of duty), and appropriate monetary compensation for non-material damage. The claim must be asserted within two months. If, in the event of a dispute, the applicant proves prima facie evidence that gives rise to an assumption of discrimination, the landlord bears the burden of proof under Section 22 AGG to show that no violation occurred. Documented criteria will help you with this.

Nevertheless, it pays to decide based on fixed criteria: A common benchmark for everyone leads to better selection than the order of receipt.

With EverReal Go!: Compare applicant data in one place

The selection only gets difficult when applications arrive across multiple inboxes. Applicants that match your apartment are displayed first in EverReal Go!: that is "It's a Match." The decision is yours. All applicant data is stored digitally and comparably in one place. You send rejections directly from EverReal Go!—to both prospective tenants and formal applicants, even to several at once. If you select a reason for the rejection, prospective tenants and applicants won't see it; they only receive the rejection message. This is covered by the Light package: a one-off payment of 34 euros including VAT per letting process, valid for six months, no subscription. Flexible Advertising is required for publishing via EverReal Go! onto portals, starting from 59 euros per 30 days including VAT; the three tiers differ in the portals included, and all prices can be found in the pricing overview.

Reject prospective tenants early and proactively

If you never get back in touch after the viewing, you are rejecting them without saying it. As soon as you have made your decision, send rejections to all those who are no longer being considered. Second- and third-choice candidates should be informed that they could move up as long as the contract with your first choice has not yet been signed; afterwards, they also receive a rejection, at the latest by the next day. An email is sufficient; the AGG does not specify any formal requirements for the rejection. A reason is not mandatory under either the AGG or the GDPR, as long as you make the decision yourself.

Template for a neutral rejection

For all those who are rejected and will not be waitlisted. > "Dear Ms. Muster, thank you very much for your interest in the apartment at Musterstraße 1 and for taking the time to view it. I have decided to go with another application. I will delete your details as soon as I no longer need them. I wish you every success in your ongoing search. Kind regards, Max Mustermann"

If you want to state a specific date—for example, because you are initially retaining data due to potential claims under Section 21 AGG—write instead: "I will delete your details no later than [date]." The upper limit is detailed below.

Template for a rejection with a waitlist note

For the second- and third-choice candidates, as long as the contract with your first choice has not yet been signed. Insert the day by which it should be signed as [date]. If it is signed earlier, the purpose ends with the signature: notify the second- and third-choice candidates with a final rejection and delete their details. If the signing is delayed beyond [date], inform the applicants of a new date before storing the data any longer. > "Dear Mr. Muster, thank you very much for your application for the apartment at Musterstraße 1. I have decided to proceed with another application; however, your application was shortlisted. As long as the tenancy agreement has not yet been signed, I may get back in touch with you. For this purpose, I will retain your details until the tenancy agreement is signed, but no later than [date], and delete them thereafter. If you do not wish for me to keep your details until then, a short message is sufficient and I will delete them immediately. Kind regards, Max Mustermann"

After the decision: Deleting applicant data

As soon as an applicant is no longer being considered, the purpose for which you collected their details ends—namely, assessing whether a contract will be concluded. The data must then be deleted (Art. 17(1)(a) GDPR, as also stated in Part D of the DSK guidance). With a view to possible claims under Section 21 AGG, according to the DSK, the data must generally be deleted after six months at the latest, provided no further assertion of claims is in question; this represents an upper limit. You may retain data longer only if a valid legal basis applies (such as Art. 6(1)(f) GDPR) and the obligation to erase does not apply, for example for the establishment, exercise, or defense of legal claims (Art. 17(3)(e) GDPR). You must be able to demonstrate necessity (Art. 5(1)(e) and (2) GDPR). How professional landlords solve this same issue can be found in the article on credit checks in tenant selection.

Conclusion: Reject prospective tenants transparently

A rejection becomes comprehensible and traceable through criteria set out in writing beforehand: Anyone who writes down three to five criteria before the first inquiry arrives can explain every decision. You can find the entire process put into context in Renting out an apartment: the complete process.

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Legal disclaimer. We do not provide legal advice. For specific legal questions, a specialist lawyer for tenancy and residential property law or your local landlords' association, such as Haus & Grund, will be able to help. Legal status: 08/10/2026.

Sources.

• General Act on Equal Treatment (AGG): Section 1 (Purpose of the Act, protected grounds), Section 2 (Scope of application, housing in paragraph 1 no. 8), Section 19 (Prohibition of discrimination under civil law), Section 21 (Claims, two-month time limit in paragraph 5), Section 22 (Burden of proof). Legal text at gesetze-im-internet.de, accessed on 08/10/2026.

• Regulation (EU) 2016/679 (GDPR): Art. 5(1)(e) and (2) (Storage limitation, accountability), Art. 6(1) (Lawfulness of processing), Art. 13 (Information to be provided where personal data are collected), Art. 17 (Right to erasure), Art. 22 (Automated individual decision-making). Official text on EUR-Lex, accessed on 08/10/2026.

• Data Protection Conference (DSK): Guidance on obtaining self-disclosure forms from prospective tenants, Version 2.0, as of January 2026, including Annex Sample Questionnaire. Authoritative for the timing of permissible questions (Parts A to C) and the erasure of applicant data (Part D).

• Prices and scope of services for EverReal Go!: de.everreal.co/go/preise, accessed on 14/10/2026.

• 450+ real estate companies: EverReal company data, as of September 2026.

Frequently Asked Questions

Do I have to give a reason for rejecting prospective tenants?

No. Neither the General Act on Equal Treatment (AGG, Sections 19 to 22) nor the GDPR (Articles 13 to 15) requires giving a reason for a rejection. The situation would only be different if an automated process makes the decision entirely on its own (Art. 22 GDPR); as long as you make the decision yourself and do not rely substantially on an automatically calculated score, this generally does not apply. What matters is the burden of proof: If an applicant proves prima facie evidence giving rise to an assumption of discrimination based on a ground listed in Section 1 AGG (for you as a private landlord with a few apartments, typically race or ethnic origin), you must prove under Section 22 AGG that no violation occurred. Anyone who adheres internally to three to five previously established criteria can explain any decision if ever required. In the rejection itself, a clear statement that you have chosen another application is sufficient; deliver it early.

Is there a template for rejecting prospective tenants?

Yes, this text can be used directly: "Dear Ms. Muster, thank you very much for your interest in the apartment at Musterstraße 1 and for taking the time to view it. I have decided to go with another application. I will delete your details as soon as I no longer need them. I wish you every success in your ongoing search. Kind regards, Max Mustermann." Four elements make a good rejection: appreciation, a clear statement, a note regarding data handling, and a polite sign-off. If you want to state a specific date—for example, because you are initially retaining the information due to potential claims—write instead: "I will delete your details no later than [date]." Giving reasons is not mandatory, and the rejection should go out to everyone you are turning down, including those who do not follow up.

Am I allowed to select prospective tenants based on profession and income?

Yes, but only from a certain point in time. According to the guidance of the Data Protection Conference (DSK, Version 2.0, as of January 2026), questions regarding profession, employer, and the amount of net income may only follow once someone has declared their intention to rent that specific apartment. For the viewing appointment, the guidance lists last name, first name, and contact details (i.e., address, phone number, or email); for social housing, additionally the information regarding the housing eligibility certificate. According to the DSK, this list is not intended to be exhaustive; however, asking about economic circumstances at that stage is generally not necessary. Therefore, you do not possess this information when screening initial inquiries. Impermissible questions include those regarding the duration of employment and the reasons for monthly liabilities, such as maintenance payments or loans. Asking about marital status solely for potential joint spousal liability is not covered by a legitimate interest according to the DSK. Solvency is therefore a legitimate selection criterion, but a late one.

How long am I allowed to keep application documents of prospective tenants?

According to the guidance of the Data Protection Conference (DSK, Version 2.0, as of January 2026), data from prospective tenants with whom no contract is concluded must be erased as soon as it is no longer required to assess whether a contract should be concluded (Art. 17(1)(a) GDPR). In light of potential claims under Section 21 AGG, according to the DSK, data must generally be erased after six months at the latest, provided no further assertion of claims is under consideration; these six months represent an upper limit, not a standard retention period. You may only retain data longer if a legal basis supports it (such as Art. 6(1)(f) GDPR) and the erasure obligation does not apply, for example for the establishment, exercise, or defense of legal claims (Art. 17(3)(e) GDPR), such as when an applicant has raised a claim. For another purpose, contact details may be retained if the applicant has consented to being informed about newly available apartments. Destroy paper records and delete digital records, including attachments in your email inbox.

Does the AGG also apply to me as a private landlord with one apartment?

Only to a limited extent. In the General Act on Equal Treatment (AGG), Section 19 (5) sentence 3 states: "The letting of residential space for non-temporary use is generally not a transaction within the meaning of paragraph 1 no. 1 if the landlord lets not more than 50 apartments in total." Anyone letting one to three apartments falls well below this, and bulk business under Section 19 (1) No. 1 AGG generally does not apply to them. The prohibition of discrimination "based on race or ethnic origin" under Section 19 (2) AGG remains in effect, except in cases of a special relationship of proximity or trust (Section 19 (5) sentence 1 AGG). Selecting based on defined criteria remains sensible regardless, because it yields better decisions independently of the AGG.

By when should I reject prospective tenants?

As soon as you have made your decision—and to everyone who is no longer being considered. Second- and third-choice candidates should be informed that they could move up as long as the contract with your first choice has not yet been signed; afterwards, they also receive a rejection, at the latest by the next day. An email is sufficient; the AGG does not specify any formal requirements for the rejection. Providing a reason is not mandatory under either the AGG or the GDPR, as long as you make the decision yourself.