Research Blog 05: what the RICS standard and unit pricing research say before switching to weight based recharging. The total stays. The shares move.
Contents
Abstract#
Moving the waste line of a service charge from floor area to verified weight changes who pays and what the building can prove. This blog tests one question: what should a property manager establish before the switch and what does the evidence say will change. It reviews the RICS professional standard on service charges in commercial property and the EPRA Sustainability Best Practices Recommendations. It sets them beside three peer reviewed studies and one management study located through Google Scholar and platform data from Wastify AI. The finding is that the standard already supports a change of basis but asks for four things: a written rationale and periodic re examination and clear communication and a consistent method across the schedule. The cost to the building does not change. The shares do: in one building the largest of 31 occupiers produced 26.02% of all waste against an even share of 3.23%. In the published illustration £575 moves from one tenant to the other: 17.9% of the bill. Research on unit pricing shows that charging by quantity reduces solid and compostable waste and raises recycling. Research on fairness shows that price changes tied to cost are judged acceptable. The switch succeeds when it is presented as exactly that.
Key Findings#
- The RICS standard asks that the rationale for apportionment be set down in writing and re examined periodically. Any amended apportionment should be rational and reasonable and clearly communicated to tenants. For soft services a direct floor area comparison may not be appropriate and the way tenants operate and use the estate should be considered [2].
- The building recovers the same total under either basis. In the illustration published by Wastify AI two tenants of 400 square metres each pay £1610 by floor area and £1035 and £2185 by verified weight: £3220 in both cases with £575 or 17.9% of the bill moving between them. In one real building the largest of 31 occupiers produced 26.02% of all waste against an even share of 3.23% [1].
- A panel study of Dutch municipalities comparing weight based and bag based and frequency based and volume based charging found that unit based pricing reduces solid and compostable waste and increases recyclable waste with no effect on waste collected in neighbouring municipalities [5].
- The EPRA guidelines ask listed property companies to report the total tonnes of waste disposed of and diverted by route. They state that estimation should be carried out as little as possible and that the proportion of estimated data should be disclosed [4].
- Telephone surveys of community standards found that raising prices to protect profits threatened by higher costs is judged acceptable while raising prices to exploit a shift in demand is judged unfair [6]. A study of the Irish move to pay by use charges drew on 13 local authorities covering more than 50% of waste arising and treated public acceptability as the central risk of the transition [8]. Wastify AI goes live within seven days of contract and porters and cleaning teams use it from day one [1].
1. Introduction#
1.1 The Question#
Floor area is the default basis for dividing a waste bill because it needs no data. The RICS standard records that apportionment based on floor area is the most common and often the simplest method [2]. A property manager who wants to switch to verified weight is not asking whether the new basis is fairer. The earlier blogs in this series have shown that it is. The manager is asking what has to be in place first and what will happen to each occupier on the day the first statement arrives.
This blog asks one question. What should a property manager establish before switching to weight based recharging and what does the evidence say will change. The question can be tested against the rules and the research. If the standard prohibited a change of basis or if charging by weight changed nothing for occupiers the preparation would not matter. Section 3 shows that neither is the case.
1.2 Why This Matters Now#
Two developments make the preparation more important than it was a year ago.
First the RICS professional standard Service charges in commercial property took effect in its 2nd edition on 31 December 2025. Section 4.2 asks that the rationale for apportionment be set down in writing and re examined periodically to assess whether there is a need for a new apportionment matrix or method [2]. Every multi tenant building is therefore due to ask the question this blog addresses.
Second reporting frameworks are tightening on estimated data. The fourth edition of the EPRA sBPR guidelines published in April 2024 asks for the total tonnes of waste disposed of and diverted by route. Its overarching recommendations state that estimation should be carried out as little as possible and that the proportion of data estimated should be disclosed [4]. A switch to weight changes the reporting position of the building as well as its recharge.
1.3 Building on Research Blogs 01 to 04#
This is the fifth blog in the series. Each of the earlier research blogs tested one part of the case that a property manager will need to make [3].
- Research Blog 01 Found that a tenant query on a floor area basis ends at a contractor invoice while a query on verified weight reaches a photograph in five steps.
- Research Blog 02 Found that in 2024/25 residual waste sent to energy from waste carried a median gate fee of £121 per tonne against £24 for food waste sent to anaerobic digestion.
- Research Blog 03 Found that the independent accountant review of service charge accounts excludes the allocation and apportionment of the service charge.
- Research Blog 04 Found that a building allocating by floor area can fully evidence only four of the ten disclosures a transparent recharging policy needs.
1.4 Scope and Structure#
This blog covers multi tenant commercial buildings in England that recover waste costs through the service charge. It proceeds in six sections.
- Section 2 Describes the method and the sources.
- Section 3 Sets out four findings.
- Section 4 Discusses what they mean for property managers and occupiers and asset managers.
- Section 5 States the limitations.
- Section 6 Answers the question.
It does not interpret any particular lease. Whether a schedule allows a change of basis depends on its wording and on legal advice.
Switch with the evidence in hand before the first statement goes out. Wastify AI delivers waste intelligence for commercial buildings where every share of the waste bill rests on a weighed and photographed record.
2. Method#
2.1 Research Design#
The blog combines three evidence streams. The first is a review of the provisions in the RICS standard that govern a change of apportionment and of the EPRA guidance on waste reporting. The second is published research on unit pricing and on how people judge price changes and on how a move to pay by use charges is received and on how organisations manage change. Four studies were located through Google Scholar and each abstract or summary was read at the publisher or at a recognised index. Three are peer reviewed journal articles and one is a Harvard Business Review article. The third is platform data and published material from Wastify AI together with the findings of Research Blogs 01 to 04.
2.2 Sources#
Every external source was opened directly on 9 October 2026 and each reference carries that access date.
Table 1: Sources consulted
Source | Data used | Vintage |
RICS Service charges in commercial property [2] | Sections 3.2 4.2 4.2.4 4.2.5 and 4.2.8.3 on apportionment and change | 2nd edition effective 31 December 2025 |
EPRA sBPR Guidelines [4] | Waste Abs measure and recommendations on estimation | Fourth edition April 2024 |
Dijkgraaf and Gradus [5] | Four unit pricing systems in Dutch municipalities | 2004 |
Kahneman and Knetsch and Thaler [6] | Community standards of fairness in pricing | 1986 |
Kotter [7] | Why transformation efforts fail | 1995 |
Dunne and Convery and Gallagher [8] | Transition to pay by use waste charges in Ireland | 2008 |
Wastify AI Research Blogs 01 to 04 [3] | Findings on queries and gate fees and the accountant review and policy disclosures | October 2026 |
Wastify AI [1] | Building month and fairness illustration and platform facts and totals | Read 16 August 2026 and 9 October 2026 |
Source: compiled for this blog from the references listed at the end.
2.3 Platform Data#
The building data describes one anonymised multi tenant office building in London with 31 occupiers in one month read from the live platform on 16 August 2026. The fairness illustration of two tenants of 400 square metres each is published on the Wastify AI tenant recharging page. Operational facts are taken from the published platform pages: live within seven days of contract and use by porters and cleaning teams from day one and four steps per stream and 29 streams and 11 bin types that come pre built.
Platform totals were read from the live counter on the Wastify AI homepage on 9 October 2026. The counter showed 5134000+ kg weighed at disposal and 955000+ verified weighings. It showed 2000+ tonnes of CO2e avoided and £660000+ recharged on verified data for 380+ companies. Public totals are rounded down. No building or tenant is identifiable.
2.4 Calculations#
An even share across 31 occupiers is 100% divided by 31 which gives 3.23%. The largest share divided by an even share is 26.02% divided by 3.23% which gives about 8.1. In the illustration the building total is £1610 multiplied by two which gives £3220 and equals £1035 plus £2185. The change for each tenant is £575 divided by £1610 which gives 35.7%. The same £575 divided by the building total of £3220 gives 17.9%. In the Irish study 13 responding authorities out of 34 gives 38%. Every derived figure was recomputed from the stated inputs before publication.
3. Findings#
3.1 The Standard Already Allows a Change of Basis#
A property manager considering the switch does not need a new rule. The RICS standard already contains the test and the procedure. Table 2 sets out the provisions that govern a change.
Table 2: RICS provisions that govern a change of apportionment basis
Section | Provision | What it means for a switch to weight |
3.2 | Apportionment demonstrably fair and reasonable and reflecting the availability and benefit and use of services | Use is the test that weight meets and floor area does not |
4.2 | Rationale for apportionment set down in writing and re examined periodically | The switch begins with a written rationale |
4.2 | Amended apportionment rational and reasonable and clearly communicated to tenants | Occupiers hear the reason before the first statement |
4.2 | Changes should reflect longer term changes in benefit and use | The baseline must show a lasting pattern rather than one month |
4.2.4 | Full matrix showing the basis and method of calculation including any weighting | The weight basis appears in the matrix |
4.2.5 | Method and basis of measurement consistent with different methods not used in the same schedule | Move the whole waste schedule to one basis |
4.2.8.3 | For estate charges a direct floor area comparison may not be appropriate for soft services and the way tenants operate and use the estate should be considered | The standard already anticipates a basis other than area |
Source: RICS Service charges in commercial property 2nd edition [2].
The test is in section 3.2: apportionment should be demonstrably fair and reasonable and should reflect the availability and benefit and use of services [2]. Floor area measures availability. Weight measures use. Section 4.2.8.3 on estate charges goes further for soft services and states that a direct floor area comparison may not be appropriate and that the way tenants operate and use the estate should be considered [2].
The procedure is in section 4.2. The rationale should be written down and re examined periodically. Any change should be rational and reasonable and clearly communicated to tenants and should reflect longer term changes in benefit and use [2]. A switch made on one month of data and announced with the first statement fails two of those conditions at once. It rests on no lasting pattern and occupiers learn of it only when the charge arrives.
3.1.1 One Schedule One Method#
Section 4.2.5 asks that the method and basis of measurement be consistent and that different measuring methods should not be used in the same schedule [2]. The provision is written about floor measurement. Its logic carries to waste. A schedule that divides collection by weight and sacks by area and rental by headcount is hard to explain and harder to defend. Section 4.2.4 asks for a full matrix that shows the basis and method of calculation including any weighting [2]. The cleanest switch moves the whole waste schedule to one stated basis.
3.2 The Total Stays the Same and the Shares Move#
The question occupiers ask first is whether the building will recover more. It will not. Table 3 sets out what changes at the switch and what stays the same.
Table 3: What changes at the switch and what stays the same
Item | Under floor area | Under verified weight | Evidence |
Total recovered by the building | Actual cost | Actual cost unchanged | £3220 under both methods in the published illustration [1] |
Share of the heaviest producer | Set by its lease area | Set by its own weight | 26.02% of all waste in the sample building against an even share of 3.23% [1] |
Share of a diligent recycler | Same rate as a contaminator | Falls | 35.7% lower in the published illustration [1] |
Waste data for reporting | Contractor estimate | Measured tonnes by stream and route | EPRA asks for estimation as little as possible [4] |
Answer to an occupier query | Matrix and invoice | Walk down to a photograph | Research Blog 01 [3] |
Source: Wastify AI published illustration and platform data [1] and EPRA [4] and Research Blog 01 [3].
In the published illustration the building recovers £3220 under both methods. The diligent recycler pays 35.7% less and the heavy contaminator pays 35.7% more. The switch moves £575 from one tenant to the other: 17.9% of the bill [1]. In the real building in the sample the largest of 31 occupiers produced 26.02% of all waste: about eight times an even share [1]. That occupier is the one whose share will rise furthest. It should hear about the switch first.
The research on fairness in pricing explains why the framing matters. Kahneman and colleagues used telephone surveys to measure community standards of fairness. Raising a price to protect profits threatened by higher costs was judged acceptable. Exploiting a shift in demand to raise a price was judged unfair [6]. A share that rises because an occupier produced more waste is a cost based change. A share that rises without explanation looks like the other kind.
The Irish experience shows the same risk at scale. A study of waste charges and public acceptability surveyed all 34 Irish local authorities as they moved from fixed charge or free collection to charging by weight or volume. Thirteen responded: 38% of authorities covering more than 50% of waste arising. The study compares the successes and problems met in that transition and treats public acceptability as the central risk [8]. A change of charging basis is judged on how it is introduced as well as on what it charges.
3.3 What Charging by Weight Does to Waste#
The second question is whether the switch changes behaviour as well as cost. The panel study of unit based pricing in the Netherlands compared four charging systems: by weight and by bag and by frequency of collection and by volume. Unit based pricing reduced solid and compostable waste and increased recyclable waste. It had no effect on waste collected in neighbouring municipalities. The authors note that unit pricing may lead to illegal dumping and that weight or bag based systems are preferable where the social cost of dumping is in line with the cost of collecting and treating waste [5].
In a multi tenant building the equivalent of dumping is waste that moves between occupiers without a record. Attribution at the kiosk closes that gap. Every disposal is weighed and attributed by PIN and photographed at the moment it is thrown away through the four step capture on the kiosk [1]. Once a load has gone through bulking with waste from other collections usually at a transfer station it can no longer be traced to an occupier at all.
Table 4: Published research used in this blog
Study | Setting | Finding |
Dijkgraaf and Gradus 2004 [5] | Panel data for Dutch municipalities with four charging systems | Unit pricing reduces solid and compostable waste and increases recyclable waste. No effect on neighbouring municipalities. Weight or bag systems preferable where dumping costs are comparable |
Kahneman and Knetsch and Thaler 1986 [6] | Telephone surveys of community fairness standards | Price rises that protect profits threatened by cost are acceptable. Rises that exploit demand are unfair |
Dunne and Convery and Gallagher 2008 [8] | Survey of all 34 Irish local authorities with 13 responses covering more than 50% of waste arising | Compares successes and problems in the move from fixed charge or free collection to pay by use. Public acceptability is the central risk |
Kotter 1995 [7] | More than 100 companies attempting major change | Change runs in phases that take a long time and a critical mistake in any phase can undo earlier gains |
Source: published abstracts and summaries of the four studies [5 6 7 8]. Kotter is a Harvard Business Review article and the other three are peer reviewed.
3.4 What the Building Gains Beyond the Recharge#
The switch produces data that reporting frameworks ask for. The EPRA guidelines ask for the total tonnes of waste disposed of and diverted by route and the proportion by route [4]. They treat disposal and diversion to recovery as separate lines. A building on floor area holds a contractor estimate of both. A building on verified weight holds a measured figure for each stream and each disposal outcome and can state that its proportion of estimated waste data is small.
The same records support measured waste data for ESG reporting and give each occupier figures for its own disclosures under GRI 306. Each measured tonne can be multiplied by a published conversion factor to give emissions in tCO2e which is the figure an occupier needs for Scope 3 category 5. Measured records also reduce the risk of greenwashing that comes from publishing a recycling claim nobody measured. Across the platform 955000+ weighings covering 5134000+ kg have been recorded and £660000+ has been recharged on verified data [1]. The published case study of a multi tenant Central London estate reports verified recycling rising from 39% to 68% in six months after kiosks and weight based recharging and alerts on contamination were introduced [1].
3.4.1 What the Switch Asks of Staff#
The operational step is smaller than the governance step. Wastify AI states that it goes live within seven days of contract and that porters and cleaning teams use it from day one [1]. The Wastify AI Touch kiosk takes four steps per stream and works with gloves and in several languages [1]. The platform comes with 29 streams each mapped to an EWC code and 11 bin types pre built so the recorded weight is net of the container from the first disposal [1]. Where a building is served by a front end loader bin the waste of every occupier is tipped into one container so the only point at which it can be weighed by occupier is before it goes in.
The rules allow the switch and the research supports it. Wastify AI gives property managers the record that makes the switch easy to explain.
4. Discussion: What This Means for the Reader#
4.1 For Property Managers#
The research on why transformation efforts fail drew on more than 100 companies. It found that change involves numerous phases that together usually take a long time and that a critical mistake in any phase can slow improvement and undo earlier gains [7]. A switch of recharging basis is a small change by comparison but the lesson holds. Table 5 sets out the phases the standard and the evidence point to.
Table 5: A phased switch to weight based recharging
Phase | What the property manager establishes | Evidence available | Basis |
1. Written rationale | Why use is the fairer test for waste in this building | Sections 3.2 and 4.2.8.3 of the standard | [2] |
2. Cost lines | Collection and sacks and rental and management and ad hoc recorded by building and month | Monthly cost entries | [1] |
3. Capture | Kiosk live and porters and cleaning teams using it | Live within seven days of contract and in use from day one | [1] |
4. Baseline | A lasting pattern of production by occupier and stream | Weighed and photographed records | [1 2] |
5. Communication | The rationale and the expected movement explained to every occupier | Section 4.2 and the fairness and acceptability research | [2 6 8] |
6. First statement and review | Statements by stream and outcome and a date for re examination | Occupier statements and section 4.2 | [1 2] |
Source: analysis for this blog drawing on [1] [2] [6] [7] and [8].
The phase most often skipped is the written rationale. It is also the one the standard names first [2]. A rationale that cites section 3.2 and section 4.2.8.3 and the baseline data is a document an occupier can read and an accountant can file. The cost entries by building and month give the cost side of the baseline and the weighings give the use side [1].
4.2 For Occupiers#
An occupier will see its share move. A light producer that separates well will see it fall. A heavy producer will see it rise and should be shown the weighings behind the change before the statement arrives. Each occupier then receives monthly occupier statements with its own breakdown by stream and by disposal outcome while other tenants are anonymised by default [1]. Any figure it questions can be followed down the record level walk down to the photograph taken at the scale [1].
4.3 For Asset Managers and Reporting#
For an asset manager the switch changes the waste line in a sustainability report from estimated to measured. EPRA asks for estimation as little as possible [4]. Investor benchmarks such as GRESB score the same waste data each year. A landlord seeking reasonable assurance over its waste figures in future will need records that an assurer can sample. Buildings working towards BREEAM In Use or running an environmental management system under ISO 14001 gain the same benefit: a measured baseline against which improvement can be shown.
5. Limitations#
This blog has five limitations that a careful reader should weigh.
- The RICS provisions apply to service charges generally. Section 4.2.5 on consistent measurement is written about floor measurement and section 4.2.8.3 is written about estate charges. Both are applied to the waste line of a single building by analogy.
- The published studies concern Dutch households and consumer surveys and Irish local authorities and corporate change programmes. Commercial occupiers may respond differently. The Kotter article is not peer reviewed.
- The fairness figures are a published illustration and the building data is one building in one month. Buildings on the platform chose to measure their waste which is a selection bias.
- This blog is not legal advice. Whether a particular service charge schedule allows a change of basis depends on its wording.
- Platform totals are rounded down and grow daily.
6. Conclusion#
The RICS standard already allows a move from floor area to verified weight. It asks for a written rationale and periodic re examination and clear communication and a consistent method across the schedule. The building recovers the same total. The shares move towards the occupiers that produce the waste: £575 or 17.9% of the bill in the published illustration. The research shows that charging by quantity reduces solid waste and raises recycling and that a change tied to cost is judged acceptable. The switch is a cost based change and should be presented as one.
A property manager who wants to know what the baseline would show can start with the waste data readiness check in two minutes.
Plan the switch around evidence rather than assumption. Book a demo with Wastify AI for a one hour session tailored to your buildings.
Frequently Asked Questions#
Does switching to weight based recharging increase what the building recovers?#
No. The building recovers its actual costs under either basis. In the published illustration the total is £3220 both ways and only the split between occupiers changes [1].
Does the RICS standard allow a change of apportionment basis?#
Yes where the change is rational and reasonable and clearly communicated to tenants. The standard also asks that the rationale be written down and re examined periodically [2]. The lease wording still governs.
Why is floor area a weak basis for waste?#
Because it measures space rather than use. The standard asks that apportionment reflect use of services and notes that a direct floor area comparison may not be appropriate for soft services [2]. In one building the largest occupier produced 26.02% of all waste against an even share of 3.23% [1].
How long should a baseline run before the switch?#
Long enough to show a lasting pattern. The standard asks that changes reflect longer term changes in benefit and use [2]. A single month is a starting point rather than a rationale.
Will heavy producers object?#
Some will. The fairness research suggests that a rise tied to cost is judged acceptable while one that looks opportunistic is judged unfair [6]. Showing a heavy producer its own weighings before the first statement is the practical answer.
Does charging by weight change behaviour?#
The Dutch evidence says yes: unit based pricing reduced solid and compostable waste and increased recyclable waste [5]. In the published case study verified recycling rose from 39% to 68% in six months [1].
How much work does the switch create for cleaning teams?#
Four steps per stream at a kiosk that works with gloves. Wastify AI goes live within seven days of contract and porters and cleaning teams use it from day one [1].
Can occupiers ask questions about the new basis?#
Yes. Living AI answers plain English questions about the weighings with the sources attached so a question about a stream or a month is answered from the records.
References#
[1] Wastify AI platform data and published material. One anonymised London building with 31 occupiers read on 16 August 2026. Fairness illustration of two 400 square metre tenants as published on the tenant recharging page. Platform and product facts as published on the platform and products pages. Central London case study as published. Platform totals of 5134000+ kg and 955000+ verified weighings and 2000+ tonnes CO2e avoided and £660000+ recharged for 380+ companies read from the homepage counter on 9 October 2026. wastify.co.uk.
[2] RICS. Service charges in commercial property. Professional standard UK 2nd edition. Published June 2025 and effective 31 December 2025. Sections 3.2 4.2 4.2.4 4.2.5 and 4.2.8.3. rics.org. Accessed 9 October 2026.
[3] Wastify AI Research Blogs 01 to 04. How Tenants Can Query Their Own Waste Charges. Why Tenants Who Recycle More Pay Less on Wastify AI. Reconciling Service Charge Waste Costs With Verified Weight. Building a Transparent Waste Recharging Policy for Multi Tenant Buildings. October 2026. wastify.co.uk.
[4] EPRA. Sustainability Best Practices Recommendations Guidelines. Fourth edition April 2024. Waste Abs and the overarching recommendations on estimation. epra.com. Accessed 9 October 2026.
[5] Dijkgraaf E and Gradus RHJM. Cost savings in unit based pricing of household waste: the case of the Netherlands. Resource and Energy Economics 26(4) pages 353 to 371. 2004. ideas.repec.org. Accessed 9 October 2026.
[6] Kahneman D and Knetsch JL and Thaler RH. Fairness as a constraint on profit seeking: entitlements in the market. American Economic Review 76(4) pages 728 to 741. 1986. ideas.repec.org. Accessed 9 October 2026.
[7] Kotter JP. Leading change: why transformation efforts fail. Harvard Business Review March to April 1995. hbr.org. Accessed 9 October 2026.
[8] Dunne L and Convery FJ and Gallagher L. An investigation into waste charges in Ireland with emphasis on public acceptability. Waste Management 28(12) pages 2826 to 2834. 2008. iaorifors.com. Accessed 9 October 2026.
