I compost it. The smell goes away within a day or two. The compost isn't all that far from the house, and other houses are close by too. Never had a problem here. Even if I let the cages go a little longer between cleanings the smell isn't too bad unless you are right near the compost pile.
I either put mine in the city trash bags, or take them to the dump myself. Taking it to the dump is a really pain in the rear. I tried just composting it for awhile, but I would have to turn my backyard into a compost pile with the amount of rats I have now. I wish I knew a gardener with a huge garden near me that I could give it to. It's amazing for your plants. You should have seen my rhubarb and pumpkins this year!!!
I'm thinking about putting up a post on CL for compost, but I'm not sure if anyone will go for it. I knew a lot of people that wanted our horse poop for compost, but I don't live on the farm unfortunately and it's a decent drive Otherwise that's where my rat poop would go!