Gator lending is simply "transaction funding" and doing "2nd mortgages".

Will they be doing other types of work like getting through the financing, becoming the guarantor, finding the deals, crunching the numbers, doing the accounting, or are they just simply doing less work?

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?

For consulting with a CPA.As mentioned above you can simply take monthly distributions, but what is most important is how you are set up. 

Without rent control i either raise their rent far above market rents so they give me notice (my preferred method) or i simply do not renew their lease.

It simply depends on your time frame, when you want to actually begin renting the property out short term, and what the loan terms are.

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.

Time allows for adjustments, scaling, and reinvestment in ways that short-term projects simply can’t achieve. 

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. 

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.