The Dunedin City Council is set to implement the changes next July.
The plan, which is based on community feedback, will introduce a four-bin system and phase out the current plastic waste bags.
Otago Property Investors Association president Kathryn Seque said the proposals would increase issues with rubbish in the student areas.
Her main concern was the proposed fortnightly collection of a new red bin for general waste, which could be between 90 litres and 140 litres.
"It really needs to be picked up more than fortnightly, especially if it’s only going to be a small bin," Ms Seque said.
Landlords and students would feel the cost of the change, and would end up paying for both private and council collections to account for the rubbish, she said.
At present, those who do not use council waste bags can opt in to a private bin collection run by Waste Management NZ, bins ranging in size from 80 litres to 240 litres and priced between $233.90 and $456.60 annually.
The issues could be alleviated with larger bins and more frequent collections in problematic areas, Ms Seque said.
"If you go to any student area on collection day now the bins are full, and once you reduce the sizing the rubbish will just pile up."
Dunedin property manager and ratepayer Christine, who declined to give her last name, said the proposed changes would lead to "rubbish everywhere" in the student quarter.
"I’m absolutely hopping mad about the situation. Cost is a big issue and the amount of waste you can get taken away," she said.
She managed student properties and the new system costs would be felt by ratepayers and residents, and would further add to rates increases, she said.
"My rates have gone up $500 this year alone."
The council needed to further outline costs, increase options for waste bin sizes and have a more frequent collection schedule for the system to be viable.
A Dunedin City Council spokesman said the new service aimed to increase recycling and reduce waste to landfill.
The change in process was part of the net zero carbon goal set by council, he said.
The existing system cost $106.10 per household, which was associated with collection of mixed recycling and glass but not rubbish.
The new system could cost between $270 and $310 a year, not including an optional garden waste bin.
At present, the collection of general waste was covered by the purchase price of DCC-branded black rubbish bags.
The council was yet to appoint a contractor for the new system.
