If you are working with a reputable company, then you buy the property, hold the property and look up 7-10 years down the road and have a home that has increased in value and a debt that has been reduced by your renter.   

@Christopher MorrisTo assess a market, consider population growth, job market, economic growth, rent-to-price ratio, cost of living, school districts, and growth benchmarks.

There's a sucker born every minute.The best way to build wealth is to increase earnings, reduce expenses, save, and invest wisely.

I don't know how much the $ impact is of your rate increase, but how much are you increasing rents?

Increase earnings, reduce expenses, save, and invest.

Specifically, there's job growth (Intel, Honda, Amazon, Nationwide, etc) and the population is growing (unlike Cleveland or Cincy).

These allow you to:1.Force Appreciation: Actively increase the property’s value through strategic renovations.2.Leverage Equity: Either refinance or flip the property to build more liquidity for your next deal.If you’re interested in chatting more about strategy or need guidance, feel free to shoot me a DM.

Running detailed cash flow projections, factoring in their management fees and expected rent increases (you can use some of the great BiggerPockets Pro tools like the calculators to do this!)

I estimate high of what the bill would be and put it on their lease, I have not had any issues this way and if the water bill goes up, I will increase on the next lease. 

Still, it makes sense because oftentimes some of the rents have never been raised for years, and those NW side neighborhoods have increased rent dramatically!