I would also charge a lot more than I would for a residential rental.Honestly, I wouldn't recommend it unless you've really studied it and understand how to protect yourself and earn fair compensation.

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.

Whats the loophole to offer compensation legally? 

Again, other might feel differently here.b) Skin in the game: as a conservative investor, I understand that the dirty secret of industries that the waterfall compensation is in the line with me and incentivizes sponsors to take more risk.

The seller is basically relieved of their debt associated with the property and may receive moving compensation and can move on with their lives without the hassle of other hidden lien/financial debt that could possibly come back to the seller if it wasn’t negotiated upfront.  

And if your LT tenant needs to assist with things now and then, be sure to show appreciation and compensation of some sort (I've offered free wifi, though my tenant prefers their own internet/cable).3) I haven't had any issues, but maybe avoiding carpet and low rates with single night rentals that ends up attracting homeless guests.

They should be compensated for the cost of a place to live.

They even pitched that I run marketplace adds for my property and refer homeroom (and if a lead goes to another property in the end, I do not get any sort of compensation).

How is each member compensated for their effort?

We are working out how to fairly distribute the cash flow so everyone is compensated.