Absolutely, it is their property and they can rent to whoever they want. If they don't want to rent to someone who smokes, has kids, has pets, or because they think you look unsavory and don't trust you for some reason. I wouldn't rent to you if you had five people for only two bedrooms and the fact that you ask this makes me think you that you think you are entitled which makes me REALLY not trust you. Landlords have to be careful because once they let you in their property it can very difficult to get a lousy tenant out. I am not saying You are lousy I am just saying they can have their opinion and put whoever they think is best in their house.