We keep our system outside. The tap on the one bucket has a slight leak, but other than that, the system works fantastically. There is no bad smell around the bucket. The only time you smell anything is when you open the bucket to add more waste into it. We're quite excited by the prospect of collecting compost tea and being able to do composting with our own kitchen waste without the stench. So far, I have been pleasantly surprised with the system. Simple and easy.