If the water bill is $100 a month, increase the price by 20% (or whatever you decide is fair) to compensate you for the time required to split and bill and to cover additional use when tenants squander the utility.

(Call it 20% federal and 5% state ($15k in income tax, plus the $45k in additional taxes you created.).

In addition to what other said, because some landlords don't increase their rents every year.

Quote from @Kyle Schachsieck: Thank you all for the information and additional resources!

Join your local real estate investors association for additional education and networking. 

Be careful about feeding additional capital into syndicates with short-term loan maturities if the only plan is to negotiate lender maturity extensions for another year. 

These are professionals with additional training and a stricter code of ethics.

As JD said, the tenant must list the landlord as "additional interest" on the policy.

In addition, I would give the tenant information about the local place that handles rental assistance programs.

Creating a catalogue of info and answers for the general benefit of those in the future in addition to the poster.