My question is for anyone who is in similar situation in which the utilities is hooked in one meter for the house, how to split the water and electric bill?

On the lease the tenants are suppose to pay for the utilities.The Gas company sent him a termination notice stating that the Gas meter was tampered with, and he has to paid $300.

Once the renters left the property management changed the locks and put a lock box on the meter so I am thinking there might be pushback until they see the condition.

Are the utilities on separate meters? 

All metered seperate.

There is a good chance if you do not have (5) total meters I have seen garage conversions (with a pulled permit) not get classified as a 5 unit or commercial.

This discrepancy often results in usage higher than what is reported by the meter.

Check Craigslist, Zillow, Rent-o-Meter, etc.We’ve found the best way to raise rent is:Determine market rentShare the proof with the tenantTell the tenant, given your rent is $x and market rent is $y, what do you think if a fair increase?

Typically when there are not separate meters for a multi-unit property, that utility is "included" in the rent.

We are both in sales so hopefully we have a decent BS-meter when being sold to :D Speaking to other investors near us in a similar situation is a great recommendation.