I’ve stayed in a medium term rental before and the owners told me the rent will be higher on months 2 and 3 to offset the higher usage costs. 

Many of us early investors run on a roller coaster credit score.Scores go down as usage goes up,paying them off after the sale makes the score go back up.Definitely something I can live with but something to consider.If your not an LLC make sure your tax pro says your OK .Capital gains can bite you.If you can do it,go for it after the first it gets easier.Good Luck!

There is a chance for tenants to overuse the utilities but I'd rather take that chance then deal with the hassle of charging each person their share based on the total usage of the household.As part of description I include "2/3 month leases for fit with up to 1 year extension", and reiterate in my showing that I'm only interested if they are interested in extending if it's a good fit.

You'd need to look at the rate and usage.

Just make sure the tank gets pumped at regular intervals 2-5 years (depending on size and usage, could be more or less frequent).

To suggest that @David Shaw not correct that mistake and instead continue with the inappropriate tax reporting of the property and "attach a note" explaining why it was wrong is not appropriate and dangerous.

A few weeks ago, Newport Utility, my electric provider for 4 properties, demanded that I increase my deposits by $100 per property, due to "increased usage."

There will also be cost-cutting efforts through reduction of water usage and connecting to central fire alarms.

I did consider reaching out to potential family members but decided against that as it seemed inappropriate and stalker-ish.

The fair way of billing is the combination of Occupancy data and deduction for common area usages.