Best way to split utilities when converting to a duplex

[Paul Tischleder]

The property has a perfect setup to create a second rental unit, with a separate driveway and entry.  It's currently all under 1 set of utilities, (gas boiler heat, electric, water, sewer, window AC units).  The city has approved its use as a duplex, so I'm good there. The property needs a medium rehab, so I'm planning redoing the kitchens and bathrooms, flooring, etc.  Does it make sense to go through the effort and cost to separate the utilities?  The boiler is old, but still works.  I realize it comes down to spending the extra money now, to make the property a better renal down the road.   Any advice on things to consider would be helpful.  The smaller unit would be a 1 bedroom 1 bath (450 sqft) and the larger unit will be a 3 bedroom 2 bath (1700 sqft).  Also do I need to create separate address, or just go with the Unit 1, Unit 2 approach?

Thanks

Paul