Update: So we retained the full deposit on the following grounds -
The tenant gave us 10 days notice by text instead of the 35 days notice required in writing. We decided to allow for the 10 days by text and calculated that the remaining lack of notice equated to 72% of the deposit. We found after vacating that the tenant had damaged the bath and continued to use the shower over the bath which resulted in significant water damage to the floor underneath and potential damage to the ceiling below adjacent to the electrical fuse box. We replaced the bath and the floor beneath. The tenant also left a significant gash in the wooden flooring downstairs and lost some window keys. All in, the repairs and 72% above resulted in the costs exceeding the deposit by approx €750. We wrote to the tenant 5 days after vacating informing them of this complete with breakdown of deductions.
Roll on 6 weeks and we receive a call from RTB that tenant has made a complaint and looked for an adjudication hearing. We submitted 47 page document outlining our position, complete with receipts, history of the property, pictures, extracts from RTB and Threshold website and RTA and the letter sent to the tenants explaining reason for retaining deposit. The tenant submitted photocopies of screenshot text messages and a 2 page rant about how unfair we were being. On the day of the hearing the adjudicator listened to both sides and asked some questions. It seems that Threshold had advised the tenants that as they had recommended somebody else to take over the tenancy they could walk without giving notice, perhaps the tenant misunderstood what Threshold were saying, who knows. It's been over a week since the hearing and we still have not heard anything. Will update further when we get a response from RTB. My only concern at this stage is that the RTB will go against us as I have heard they can be pro-tenant but surely their decision has to be based on a point of law. Also wondered do RTB ever get pi**ed off when Threshold give inaccurate advice and encourage tenants to lodge a complaint when there are no grounds.