Some don't allow rainwater collection. and grey water usage. 

This can be used for real estate directed by you or other things, gold and silver, but I assume you want real estate usage.

In the lease, I cap the usage rate at 10 cubic feet per household or 20 cubic feet for the building.  

Considering the entire house is electric any reduction of electric usage will increase my bottom line. 

Sacramento city isn't on water meters yet, so cutting back on water usage won't affect the amount being paid.

For my rentals the utilities are in my name and I pay them directly but bill the tenants and let them know the usage every month ....

Also when you remodel keep water usage in mind.By any chance is the property in Santa Clara.

My spreadsheet for each property more or less looks like this: date of item in Column A, expense in appropriate column B-D.

YMMV with higher short-term rates but fewer short-term visitors during these months.Also, Airbnb has started collecting hotel/occupancy taxes for Chicago now and I believe such "transient" usage is defined as any stays less than a month.

(I wouldn't get as nice of a property, I'm sure, but the upside would be greater)I've decided I need to walk away from this one, and think a bit more about aiming for middle of the road in appropriate neighborhoods.