What Utilities to include in the rent?

[Richard Phillip Lewis]

I'm in the process of gathering applications to rent my recently renovated duplex in Point Pleasant, NJ. My initial plan was to simply have tenants pay Rent + Utilities. I showed the property the other day and a tenant asked if I would be paying for the water bill? I said I wouldn't be since the duplex has all separate meters for each unit for all utilities. The tenant said "Oh, just so you know the water company will put a lein on your house if the water bill isn't paid" - This caught me off guard. I looked it up and the tenant was right. 

My Question: How do you handle utilities? Do you pay for the water bill and just have the tenant pay you back? Do you include a flat rate in their rate to cover the average water bill and eat the difference? 

Thoughts?