If landlord pays water/sewer, and with more occupants you know you will see higher water usage, think you could make a logical case for some additional rent or per person fee to cover that. 

Even with $700 cash flow, and significant equity, the 1031 gets me into a higher return property (if I can find the right buy) -- andn the one I'm seeking (multiunit, for MTR usage).Love this group!

@Sol BergrenIs this new flooring or flooring thats been through some usage?

I currently own a duplex and have a question regarding using RUBS for gas usage. 

This would allow me to raise the rent for the main house a bit over market but I'm concerned usage could get out of control and making my cashflow take an unpredictable hit.Does anyone see other options here that may work better than the two above?

Take the time to check usage/zoning maps. 

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I'd suggest posting your location as prices will vary depending where you are (as will usage of the HVAC).The price difference is quite a bit. 

Very dependent on each home's usage profile (as you mentioned) along with heating/cooling equipment type, utility rates and and solar net metering schemas.