In today’s challenging economic environment, multi-property organizations are facing a persistent and growing expense: waste management costs. For companies managing multiple locations, whether in multifamily housing, senior living, retail chains, or medical facilities, these expenses are rising at an alarming rate, often flying under the radar while quietly eroding profitability.
Industry data tells a sobering story. The North American industrial waste management market is expected to grow from $32.26 billion in 2025 to $43.88 billion by 2030 – a 6.35% compound annual growth rate. For individual property managers, this trend translates to waste service costs potentially doubling over a five-year period.
But there’s good news. Top-performing organizations have found ways to significantly reduce these expenses without disrupting operations or changing vendors. Using the strategies we’ll outline in this article, our clients have achieved an average of 30% savings, with some cutting costs by as much as 56.9% across their portfolios.
The Rising Cost of Waste Services
Several factors are driving the relentless increase in waste management costs:
Annual Price Increases (APIs): Many waste service contracts include APIs around 15% per year. While individual increases might seem manageable, the compounding effect means companies often see their waste costs double over five years without any change in service levels.
Labor Expenses: Labor constitutes 30-50% of total waste management costs. Ongoing labor shortages and increased competition for workers have only accelerated this trend.
Vendor Consolidation: The waste industry continues to consolidate, with major national providers acquiring local haulers. This consolidation often leads to reduced competition and higher prices in many markets.
Unmonitored Billing: Without proper oversight, invoice errors go uncorrected, and additional charges accumulate. Our analysis shows that 9.5% of waste services invoices contain billing errors, a significant source of unnecessary expense.
Common Challenges in Multi-Property Waste Management
For organizations managing multiple properties, four key challenges consistently prevent effective cost control:
1. Inconsistent Procurement Processes
Most multi-property organizations lack standardized procedures for waste service procurement. With no single expert managing the process, each property often negotiates independently, resulting in vastly different terms and rates across the portfolio.
2. Limited Visibility Across Properties
Without centralized tracking, organizations have no clear understanding of contract terms, service levels, or spending per property. This lack of visibility makes it impossible to leverage scale or identify outliers requiring attention.
3. Unmonitored Invoicing
When invoices aren’t systematically reviewed against contracts, vendors have opportunities to increase rates or add charges without justification. Over time, these undetected increases significantly impact total costs.
4. Poor Contract and Renewal Management
Missed renegotiation deadlines result in higher costs and lock organizations into unfavorable terms, uncapped increases, and automatic renewals – all of which contribute to accelerating cost creep.
One multi-family portfolio with 257 properties across the United States provides a telling example. Using seven different management companies, they had no consistency in waste procurement and zero visibility into spending across locations.
By addressing these challenges systematically, they achieved a 56.9% gross savings on 105 properties, with optimization work continuing across their remaining locations.
The 5 Billing Landmines Costing You Thousands
1. Overflow Charges ($125-$260 per occurrence)
Contrary to popular belief, these aren’t just charged when trash is piled around dumpsters. Many haulers assess overflow fees when any portion of waste prevents the lid from closing completely. These charges quickly add up across multiple properties.
2. Fuel/Environmental/Energy Fees (14%-45% of invoice total)
These supplemental charges often represent a substantial percentage of the total invoice. While some adjustment for fuel costs is reasonable, these fees are frequently inflated well beyond actual cost increases.
3. Contamination Fees ($12+ per yard)
Especially common with recycling services, contamination fees are assessed when non-recyclable materials are found in recycling containers. Without proper training and monitoring, these fees can make recycling programs more expensive than beneficial.
4. Minimum Tonnage Fees
Applied to rolloff containers for underweight hauls (typically with a 4-6 ton minimum), these charges mean you’re paying for waste you didn’t generate. Right-sizing containers or adjusting service frequency can eliminate these fees.
5. Unchecked Rate Increases (>15% annually)
Without contractual caps, annual rate increases can far exceed inflation or actual cost increases. Many clients are shocked to discover they’re paying rates 40-50% higher than market without realizing it.
Strategies for Taking Control of Waste Service Costs
1. Service Level Optimization
Right-sizing containers and adjusting service frequency to match actual needs can immediately reduce costs. This often involves replacing multiple dumpsters with a single compactor or reducing pickup frequency at locations with consistent underutilization.
2. Contract Consolidation and Negotiation
While consolidating all properties under a single hauler isn’t always advisable (due to regional service differences), standardizing contract terms across vendors provides significant leverage. Key negotiation points include:
- Capping annual price increases
- Eliminating or reducing environmental fees
- Removing first right of refusal clauses
- Establishing clear contamination standards
3. Market Data Utilization
Having access to current market rates for waste services is crucial for effective negotiation. This data allows organizations to challenge unreasonable pricing and secure rates aligned with market realities rather than accepting standard vendor increases.
4. Systematic Invoice Monitoring
Implementing a process to review every invoice against contract terms identifies discrepancies before they become established billing patterns. This ongoing vigilance is essential – our data shows that vendors revert to non-compliant billing patterns approximately four months after corrections without consistent monitoring.
Beyond Cost Savings: Sustainability and Compliance
While immediate cost savings drive most waste management initiatives, organizations increasingly face pressure to improve sustainability metrics and provide accurate ESG reporting. Effective waste management supports both goals.
Many companies now require detailed tracking of waste streams for environmental reporting. Without systematic data collection, assembling this information across multiple properties becomes extraordinarily time-consuming. The same systems that optimize costs can capture this data for sustainability reporting, creating a dual benefit.
Taking Action on Waste Cost Reduction
The strategies outlined here have delivered consistent savings for multi-property organizations across various industries. The key is systematic implementation and ongoing vigilance.
For most organizations, waste management isn’t a core competency. Yet without proper attention, these costs will continue to rise unchecked, potentially doubling every five years. The good news is that significant savings are achievable without changing vendors or disrupting operations.
SIB Fixed Cost Reduction’s waste management experts have delivered $250 million in savings across 54,000+ properties nationwide. Our team analyzes vendor contracts, monitors invoices for compliance, and leverages market data to deliver an average of 30% savings without changing vendors or disrupting operations. To learn how we can help your multi-property organization reduce waste service costs, contact us today.
Callout Box Content Ideas
Common Signs You’re Overpaying for Waste Services
- Your waste costs have increased more than 15% in the past year
- You regularly see overflow or contamination charges on invoices
- You're not sure what service levels you have at each property
- Your contracts auto-renew without review
- Different properties pay wildly different rates for similar services
Quick Win: Three Questions to Ask Your Current Waste Vendor
- "What is your policy on overflow charges, and how can we avoid them?"
- "How are your fuel/environmental surcharges calculated, and are there ways to reduce them?"
- "Can we cap our annual price increases at a fixed percentage?"
Cost Savings Calculator
Annual waste spending per property × Number of properties × 0.30 (average savings) = Potential annual savings
Expert Tip from Steve Sims, Sr. VP Waste & Recycling
“Always take ‘first right of refusal’ clauses out of waste contracts. These clauses give your current vendor the right to match any competing offer, effectively eliminating true competitive bidding when your contract comes up for renewal.”
