How much does valet trash service cost?
First of all, the answer to this question will be very different based on who you ask. The costs of valet trash services are not the same for residents and property managers. As a result, you might hear that it costs as little as $8 per month or as much as $35 per month.
While it is easy to give a quick range for the cost of valet trash service, prices vary greatly based multiple factors.
How much does valet trash service cost property managers?
Property managers contract valet trash services on a price per unit per month. Normally they run about $8 to $15 per unit. Consequently, a 100 unit property would pay between $800 and $1,500 per month. There are additional factors that impact the cost of valet trash services for property managers.
Frequency of valet trash pickup
The standard valet trash service collects trash between 8PM and 11PM 5 nights per week, normally Sunday to Thursday. While this is the industry standard, there are exceptions. For example, Royal Trash Valet offers estimates based on 3 or 5 collections per week, with the cost going from $8 per unit to $12 per unit.
Special collection times
In addition to the frequency of trash pickups, special weekend collections can impact price. While these are not incredibly common, they are offered, especially for student housing communities. For example, National Doorstep Pickup has special programs for student housing communities after football tailgates.
Many times, valet trash services are contracted on a minimum 1 year basis. However, some providers will offer 24 or 36 months to property managers. In certain situations, a discount will be applied if a longer contract is signed. This is done on provider by provider basis and each will offer different incentives for signing a longer contract.
How much does valet trash service cost residents?
While property managers contract the valet trash service, their residents foot the bill. Many times residents pay between $25 and $35 per month for valet trash service. In most cases the valet trash service cost is included in a residents’ lease. Furthermore, it is not an optional amenity, but a mandatory service. Residents are not given a choice of whether or not they want to use the service.
If the typical provider charges $8 to $15 per month, why do property managers charge $25 to $35 per month?
Valet trash as a profit center
In many cases, valet trash services act as a center for property managers. In addition to the other benefits it provides, such as a cleaner community, property managers are able to monetize their resident’s trash. The money is made by simply charging residents more than the contracted per unit price.
On many message boards and leases, residents note valet trash service costs around $30 per month. Furthermore they fine residents who do not use the service regularly enough. Fines are normally $25. Consider a 100 unit property contracted for $12 per unit per month.
- The property manager pays $1,200 per month for the service
- Residents are required by their lease to pay $25 per month for the service
- Property managers collect $2,500 per month from residents
- Property managers make $1,300 per month off their residents’ trash
A property manager with a 1,000 unit portfolio could earn $13,000 per month off their residents’ trash. This is over $150,000 annually. Since it came onto the scene in the last decade, valet trash has exploded in use as a result of the financial impact it can have for property managers.
Valet trash service providers
Looking to hire or change your valet trash service? Need a free valet trash quote? We have compiled a our valet trash service guide which highlights some of the industry’s top providers. Additionally, property managers can use BidSource to have the Property Manager Insider team locate a qualified vendor in their local market.