Has anyone faced a similar problem, or successfully reduced utility usage? 

Billing the tenant based on his usage: in here, everything is under the owner name, and the owner emails a broken down utility copy from the electricity/gas companies to each tenant, and presents how much their meter displays and subsequently how much they own. 

This is a general response, naming attributes, based on your post and what I would want personally:-Monitored, police response -motion sensors in appropriate areas-cameras both indoor (public areas)  & outdoors - motion activated, records to cloud, holds for minimum 48 hours, w/ audio capability-remote light switch control-remote alarm mode settings : on, off, at home-remote lock / unlock entrance-remote doorbell camera (service, delivery interaction)-temperature & flood sensors around appropiate areas-alert capability (various) set for your concerns-ample exterior motion dection led lighting, some solar powered lights that illuminate all night-phone app that you are comfortable usingThere are more attributes I would want but I'll stop here. 

Charge extra for internet and cable and water usage while you're at it.

That is the maximum usage of cash to get the most loan, in my eyes.

It connects to your wifi and allows you to fully manage remotely and monitor usage. 

With tourism being the single highest contributing factor to the GDP for the state, I don't see it being in their best interest to completely shut out Airbnb or go around shutting everyone down...not to mention it would be a huge usage of resources to do so. 

Are you just putting meters to read the usage then billing back the tenant? 

I feel like its only a matter of if, not when, that he breaks down the machines and expects me to replace both of them.The lease stipulates "reasonable" usage of utilities.

In its current usage, it means any rental of fewer than 30 days.