Raise rents vs utilities fee

[Sam R.]

I have a small building (7 units) which is a behind on rent increases. Even if I raise the rents to market rent for 1 bedrooms in the area, it would still be behind because I pay for the heat. The management company suggested the possibility of utility charge. I am interested in doing that so that the rents for the current and future tenants are more easily compared to other rentals in the area.

What are the downsides of a utility fee? Is there any requirements that it go towards utilities only?