Should you bill tenants for trash and dumpster fees or include them in rent?
Most small-building owners include trash in rent, because it is a modest cost and billing it back adds paperwork. If you want to bill it, check your state first: Arizona lists solid waste removal among charges that may be allocated, Virginia treats local trash and recycling fees as allocable if the lease says so, and Oregon allows only the cost as billed to the landlord.
What are the choices?
| Choice | How it works | Trade-off |
|---|---|---|
| Include in rent | You pay the hauler or the city and set rent with the cost in mind | Simplest; no incentive to cut waste; cost rises with fees |
| Bill back by formula | Divide the hauler's bill across units by occupants or unit | Requires disclosure and records; disputes if a unit is vacant |
| Tenant contracts directly | Each unit has its own bin and account with the hauler or city | Cleanest billing; needs space for bins and a provider that serves it |
| Flat fee in the lease | A fixed monthly trash charge | Easy, but several states limit a pass-through to actual cost |
What do state statutes say about trash charges?
- Arizona: a landlord may charge separately for gas, water, wastewater, solid waste removal or electricity through submetering or a ratio utility billing system, with the lease disclosing the services charged and any administrative fee (A.R.S. 33-1314.01).
- Virginia: local government fees include charges for stormwater, recycling and trash collection. An owner may allocate the actual or anticipated fees billed to the building across tenants by a formula if clearly stated in the lease, in lieu of increasing rent (Va. Code 55.1-1212).
- Oregon: garbage collection and disposal is a utility or service under the statute, and a charge may include only the cost billed to the landlord by the provider, with a written agreement and a bill that explains the allocation (ORS 90.315).
A flat fee larger than the actual cost can break the cost-only limit in states like Oregon. A flat fee equal to the actual share, recomputed when the hauler's price changes, stays within it.
How do you split a dumpster bill?
Example a made-up six-unit building pays a hauler $180 a month for a shared dumpster. Split equally by unit, each unit's share is $30. Six shares of $30 add to $180. If one unit is vacant and the owner absorbs its share, five tenants pay $30 each, $150 in all, and the owner pays $30.
Equal shares by unit are common for trash, because use does not track occupants closely. If you use a formula that depends on occupants, say so in the lease. Whatever you choose, state it in the lease and apply it the same way every month.
How is it recorded?
IRS Publication 527 lists utilities as a rental expense and says expenses a tenant pays on your behalf are rental income. If you bill tenants a trash share, record the hauler's bill as the expense and the reimbursements as income, and let your preparer decide how it fits your return.
How do you decide?
- Find the monthly cost per unit. If it is small, include it in rent.
- Check your statute. If it requires a method, notice or cap, decide whether the paperwork is worth the saving.
- If you bill back, write the method, the amount and the dates into the lease before the tenancy starts.
- Review once a year when the hauler or the city changes its price.
Rules about where bins live, pickup days and bulky items belong in a separate house rule. See trash and recycling rules to put in a lease.
Where DoorKeeping fits
DoorKeeping reads the hauler's invoice with AI and codes it to the property's books, and a bulky-item pickup can be a work order sent to a helper by link. DoorKeeping does not bill tenants for trash. This is general information, not legal or tax advice. Check the current statute and ask a local attorney or your tax preparer.
Sources
- A.R.S. 33-1314.01, Utility charges; submetering; ratio utility billing; allocation (Arizona Legislature), read Oct 31, 2026
- Va. Code 55.1-1212, Energy submetering, sewer and water submetering equipment, and ratio utility billing systems (Virginia Law), read Oct 31, 2026
- ORS 90.315, Utility or service payments; additional charges (Oregon Legislature, Chapter 90), read Oct 31, 2026
- IRS Publication 527, Residential Rental Property, read Oct 31, 2026
Questions
- Can a landlord charge tenants for trash pickup?
- In many states yes if the lease says so, but some limit the charge to actual cost. Arizona, Virginia and Oregon each have specific rules.
- Should trash be included in rent?
- For a small building it often is, because the cost is modest and billing back adds paperwork. It is a business choice.
- Is a flat monthly trash fee allowed?
- Only where the statute allows it. Oregon limits a utility charge to cost as billed, so a flat fee above cost would not fit.