As Auckland Council moves away from the ‘Pay as you throw’ bin tag system to a rates-funded collection service, landlords need to understand their rights and obligations under the Residential Tenancies Act (RTA). While every tenancy situation is unique and specific circumstances matter, here is some general guidance to help you manage waste collection costs with your tenants.
The Key Changes
Auckland Council is implementing a standardised waste collection service across the region, with different areas transitioning between December 2024 and September 2025. The new annual charges will be:
- Standard bin (120L): $174.77 (this cost has already been priced into this year’s rates)
- Smaller bin (80L): $145.24
- Larger bin (240L): $290.09
Can You Pass Bin Upgrade Costs to Tenants?
The short answer is generally no. Here’s why:
Section 39 RTA Analysis
Section 39 provides for landlords to be responsible for all general rates-related costs. Since the new bin collection charge will be incorporated into the general rates, the cost (including any upgrade charges) falls squarely on the landlord’s shoulders. This applies even when a tenant requests a larger bin size, which results in an additional cost of $115.32.
As APIA General Manager Sarina Gibbon explains: “Even if the top-up invoice is not specifically narrated as part of the rate bill, it is still unlikely for landlords to cleave the charge out from section 39(2)(a) because the Council has been very explicit that bin collection is under a rates-funded model.”
Section 28 RTA Consideration
While Section 28 of the RTA allows for rent increases when facilities or services are improved, attempting to use this provision for bin upgrades would likely be problematic:
- The cost differential ($115.32) is relatively minor
- Tribunal application costs and time investment would likely outweigh any potential benefits
- It could unnecessarily strain the landlord-tenant relationship
- Success at the Tribunal would be uncertain and highly fact-dependent
Sarina notes, “Landlords are far better off exploring cost-saving strategies by working with their tax and finance advisers. When you finance correctly and are on the right tax strategy, the savings you are looking at will be far more than $115.32 a year.”
Important Notes for Landlords
Bin Size Changes and Council Process
Auckland Council has confirmed they have a verification process requiring ratepayer (landlord) consent before implementing bin size changes. However, we recommend:
- Regularly checking your rates account for unauthorised changes
- Keeping documentation of any bin size change requests
- Being aware that you should receive either a top-up invoice or credit note for mid-year bin size changes
- Understanding that if tenants request a smaller bin, the resulting $29.53 savings belongs to the landlord with no obligation to pass it on to tenants
Best Practice Recommendations
1. Communication is key
- Share the council’s announcement about bin tag phase-out with your tenants
- Establish clear procedures for bin-related requests
- Keep written records of all bin-related communications
2. Manage Bin Size Changes Proactively
- Request that tenants direct all bin change requests through you first
- Document all bin size change requests and approvals
- Regularly verify that your billed bin size matches what’s actually at the property
3. For Property Managers
- Develop clear internal policies regarding bin-related charges
- Be prepared to advise landlords about Sections 39 and 28 of the RTA
- Consider including bin size change procedures in your property management agreements
- Remember that as agents, you can (and should) decline instructions that contravene the RTA
Risk Management Tips
- Maintain clear documentation of all bin-related communications and decisions
- If something seems amiss with council charges or bin sizes, investigate promptly
- Consider adding bin size change procedures to your tenancy agreements
- Stay informed about council updates regarding the new collection system
Need Help?
If you notice any unauthorised bin size changes or issues with council processes, document the problem and reach out to your property manager or local property investors’ association. They can help lobby council for process improvements when needed.
Remember: While these bin-related changes might seem minor, maintaining clear communication with your tenants and following proper processes will help avoid unnecessary disputes and ensure smooth property management operations.
Disclaimer: This article provides general guidance only and should not be relied upon as legal advice. Specific situations may vary, and you should seek professional legal advice for your particular circumstances.
Add Comment