I work for a utility management company and there are various methods of way to "bill" residents for their usage.

Per day.Headlines indicate:Water stores in California will last only ONE YEAR.Many properties are having collapse of earth due to usage of groundwater.

@Rusty Scott I looked up the zoning usage and requirements for both lots to see if the current setup was allowed.  

There have been instances in Colorado of extended usage of adjacent land giving the user legal claim over the property, it would be interesting to investigate what the rules are on an "assumed" easement and if that gives the owners some claim to the lot.  

You need to first of all make sure when you do separately meter the water that indeed the tenant is only paying for their usage and not another tenant or not the laundry facilities etc.Also go through an attorney to make absolutely sure the verbiage on your current lease allows for immediate change in the utility billing. 

Brian,PROS: Guaranteed on time rent; andRoutine inspections by Sec8 inspectors which keep your tenants on their toes.CONS:Overly demanding at times;Sense of entitlement;Endless of sobbing stories;Mostly on disabilities (regardless of most of them able to work);Will never care for your proerties;Tenants not paying the water bills in full each and every month (If they're to pay for water usage);Constant calls from sec8 tenants asking from you to write letters for them to sec8 office stating that no additional residents are living with them (this is in response to complaints sec8 office received); New pit bulls in house regardless of what it says on the lease;If you're paying for water and sewer, your property will look like a car wash and laundromat since most of their family and friends will be using your property because of ammenities.Cigarette butts all over the yard;Rent is below market rent;Arrogant Sec8 inspectors; etc.

There are two of us, aged over 55, living at less than 40K per YEAR, AFTER our primary home's PITI is paid by our rentals' cash flow.

It does correlate to infrastructure for that township as well as property usage for the township. $100,000 value would have a 10% assessed value for owner occupied primary dwellings.

Are we required to provide usage split for 'non-refundable' pet cleaning fee as part of move out deduction.

When you get raises report it to discover card and they'll increase your line of credit without a credit check and lower your total credit usage (if they need to do a credit check they'll send you a request for authorization and you can just decline and withdraw your app for an increase).