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Matt Leighton discusses rental application mistakes in his tutorial, highlighting seven key errors to avoid when applying for rental properties. The first mistake is negotiating rental terms before submitting an application. He emphasizes that potential renters often inquire about the property's availability and rental flexibility without having seen the place or expressed their intent to apply. Leighton points out that negotiations should occur after the application is submitted, noting that it's essential for landlords to first assess applicants' qualifications, such as their credit scores. This approach can lead to more productive discussions on rental terms.