Is it best to simply increase rent by a fixed amount (e.g., $700) to cover this, or are there other strategies for handling utilities in this situation?

Usually when a landlord cannot find qualified tenants but are getting a fair amount of inquiries there's an underlying real estate problem and the qualified tenants simply do not want to live in that location.

A buddy of mine talked to his tax guy who told him these “Distributions” aren’t currently taxable right now and simply adjust the basis downwards (almost like a return of principal), but when the principal actually DOES get returned (generally about 5 years out in this case), that the difference between the amount returned and this downward adjusted basis is taxable at capital gains rates - if held longer than 1 year, generally 15% tax.  

This simply means you have language in your lease that states the landlord is responsible for paying utilities up to a certain $ amount (let's say $100 for the sake of argument).

Scenario 1 they don’t or refuse to move- eviction costs and/or lost rent Scenario 2 they move out and Cap ex and turnover costs, lost rent, advertising for new tenants in a somewhat of a qualified tenant shortage, headaches can be avoided by simply having a conversation with the tenant to see where their head is at, and that they understand what your expectations are.

As a powerful organization, I would like to see Bigger Pockets become a leader in not simply educating real estate investors but leading the way in warning investors about the real estate guru pitfalls.  

There simply isn't enough margin in this business to layer on a national company, without charging you an arm and a leg and/or doing a substandard job.

The indoor malls that simply offered shopping and a food court are the ones dying off.I've seen some malls be demolished and replaced with high-density single family developments. 

Managing properties locally is simply more efficient as I get started.I’d definitely be up for discussing this further and exploring potential synergies.

The economics simply do not favor the investor.