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?

Rents , cash flow and appreciation increase over time. 

Leverage is a big factor in real estate investing, as investors can control large assets with relatively small down payments, increasing their potential returns (and risks).6.

This will increase the return above what can be obtained on a passive investment.The flipside of having the power to control everything is that it can be alot of work (and a full-time job if a person is putting in sweat equity).

They may have been introduced to wholesaling as a low-barrier entry into real estate and never considered licensing as a viable option.Why Getting Licensed Could Be Beneficial:Access to MLS: Licensed agents can access MLS listings, making it easier to find deals and run comps.Credibility: Being licensed can increase trust and credibility with sellers and buyers.Expanded Opportunities: As you mentioned, having a license opens up the option to list properties traditionally when wholesaling isn’t the best fit.Legal Clarity: Licensing helps clarify what you can and can’t do, reducing the risk of running into legal issues that plague unlicensed wholesalers.It’s a balancing act, but for many serious operators, getting licensed seems like a logical step to expand opportunities and ensure compliance.

We might consider a slight increase in 2026.

When we create our business plan, we also include our exit plan.We'll only proceed if we can clean this up, acquire new tenants at higher rents so we can increase our NOI, which in turn should reflect our cap rate and profits.Since this asset class is new to us we will tread cautiously.Scheduled to preview tomorrow. 

Pros - guaranteed rent, tenants stay longer on averageCons - more mgmt needed (lease violations), they tend to not take great care of properties (increase maintenance expense or deferred maintenance)

We believe that we are lowering risk, increasing the average expected return, and leaving the upside unchanged.   

I would want to make improvements to all units and increase the rent to market value when the renovations are completed.