Lots of terminology to deal with while renting or managing rented property? At SafeDeposits Scotland we work hard to make deposit protection the easiest part of the process. In this A-Z series we aim to put some of the key terminology, and other considerations, front and centre to help you along the way.

A is for ADR

At the end of the tenancy, if the landlord feels that the tenant may have been in breach of their tenancy agreement, they may wish to make a claim for part or all of the deposit as compensation. When repayment is requested either by the landlord or tenant, this is where the landlord would have the option to make their claim. The tenant can then choose to either agree or disagree with this. If they do not agree with the claim, they have the choice of either taking the case to court, or instead turning to ADR – or Alternative Dispute Resolution.

ADR is a free service offered by tenancy deposit schemes in Scotland that attempts to resolve end of tenancy issues between tenants and landlords and help them come to an agreement without taking the more traditional route of going to court. Typically, most issues can be resolved between both parties simply by discussing the matter with one another with no need for the situation to escalate. If the parties involved cannot come to a mutual understanding, the case will be progressed to an adjudicator who will make a decision based on provided evidence. The adjudicator will not meet with the other party nor visit the property, and their final decision will be based entirely on the evidence at hand.

The first step in the ADR process is self-resolution. Here, both parties should communicate with each other and attempt to come to a mutual understanding and agreement. This is necessary under the Tenancy Deposit Schemes (Scotland) Regulations 2011, and we cannot progress any case to formal adjudication until parties have exhausted all attempts to resolve the issue themselves. If an agreement cannot be reached, the case can be moved to the next stage in the process. Parties will have 10 working days to provide evidence of attempts to resolve, and if no evidence of this has been provided then the 10 working days will continue to reset until then.

The next stage involves the landlord providing evidence that the tenant has breached their tenancy agreement. The onus is on the landlord to give evidence as they are the one making the claim. The landlord will have 10 working days to submit evidence to back up their claims. It is advised that they use written evidence, with pictures used only as supplementary evidence when required. Following this, the tenant will then have 10 working days to view the landlord’s evidence and submit any counter-evidence. The adjudicator assigned to the case will then review and consider all evidence that has been submitted, and publish a report outlining their decision within 25 working days.

SafeDeposits Scotland is a government approved tenancy deposit scheme for Scotland, and is the only scheme based in Scotland. We hold the deposit during the tenancy and return to the tenant at the end of the tenancy when the landlord or letting agent has agreed to repayment. We also provide an impartial adjudication service for tenants and landlords if they can’t come to an agreement.