Northern Ireland Tenancy Deposit Dispute: The ADR Process

What Triggers a Deposit Dispute

A dispute arises when the landlord and tenant disagree about how much of the deposit should be returned at the end of a tenancy. The landlord wants to retain some or all of it for damage, cleaning, or rent arrears. The tenant disagrees with the deductions.

In Northern Ireland, the first step is always direct negotiation. If you and the tenant can agree on a split — you keep £200 for cleaning, the tenant gets £550 back — the scheme processes the agreed distribution. No dispute, no adjudication.

When agreement fails, any undisputed amount must be refunded to the tenant immediately. The disputed sum then goes to the scheme's alternative dispute resolution service.

Free ADR Through Both Schemes

Under Regulation 31 of the Tenancy Deposit Schemes Regulations (Northern Ireland) 2012, both TDS NI and mydeposits NI must provide free ADR to landlords and tenants. There is no cost to either party.

The process:

1. Dispute initiation: Either party can ask the scheme to refer a dispute through its portal. ADR is not compulsory for the tenant: if the tenant requests a referral, the landlord must use ADR; if the landlord requests it, the tenant must consent
2. Evidence submission (14 to 28 day window): The landlord submits check-in and check-out reports, inventories, photographs, receipts, and ledger records. The tenant submits counter-evidence and written responses
3. Independent adjudication: An adjudicator reviews the written submissions. There is no hearing — the decision is made entirely on documentary evidence
4. Written decision and payout: The adjudicator issues a written decision. Either party may request a review within 10 working days, but only on grounds that the adjudicator erred in fact or law. If no review is requested, the scheme repays the deposit within the following five working days

After the review process, the decision is final.

The Burden of Proof Is on You

This is the single most important thing to understand about deposit disputes in Northern Ireland. The adjudicator starts from the position that the tenant is entitled to the full return of their deposit. Every pound you want to retain, you must justify with evidence.

No evidence, no deduction. It does not matter that you saw the damage with your own eyes or that the neighbour heard the party that caused it. If you cannot produce documentary proof, you lose that claim.

What Counts as Evidence

Strong evidence includes:

• Dated check-in inventory — a detailed, itemised schedule signed by both landlord and tenant at the start of the tenancy
• Dated check-out report — completed on the final day of occupancy, cross-referenced against the check-in inventory
• Photographs — high-resolution, date-stamped images of specific defects and damage, taken at both check-in and check-out
• Itemised invoices — contractor invoices, professional cleaning receipts, or material purchase receipts for actual costs incurred

The check-in inventory is the foundation. Without it, you have no baseline to prove that damage occurred during the tenancy rather than before.

Fair Wear and Tear

You cannot deduct for normal ageing and reasonable everyday use. Scuffed skirting boards, minor carpet wear in traffic areas, faded curtains — all fair wear and tear. Deductions are limited to:

• Damage: tenant negligence, intentional harm, or improper use (burned carpets, broken appliances, holes in walls)
• Cleaning: restoring the property to the exact cleanliness standard documented at check-in — not to a higher standard
• Rent arrears: unpaid rental sums due under the tenancy agreement

You are barred from "betterment" or "new for old" claims. If a five-year-old carpet is damaged, you cannot claim the full cost of a new carpet. The adjudicator will apply a depreciation calculation.

When the Tenant Refuses ADR

If ADR is not used, either party can pursue a court claim. The Northern Ireland Small Claims Court is a separate court within the County Court for eligible civil claims up to £5,000. Claims are administered by the Northern Ireland Courts and Tribunals Service (NICTS).

During court proceedings, the scheme holds the disputed deposit in a designated account until the court issues a final order specifying how the money is distributed.

Building Your Evidence From Day One

Deposit disputes are won or lost before the tenancy even starts. The check-in inventory, the condition photographs, and the signed prescribed information — all created in the first few weeks — are the documents that determine the outcome years later. Our Northern Ireland Tenancy Deposits guide includes inventory templates and a deduction schedule designed to meet the evidence standards that TDS NI and mydeposits NI adjudicators require.

See more Northern Ireland guides →