If the utilities are in their name they might remember to shut off the water while they chat and if they don't no skin off your nose.Another thing to keep in mind is that sewer charges are often related to water consumption so excess water use bites twice.Sure once in a while you may get a tenant that stiffs you and if they have other damages you might end up eating the cost of a few months of utilities once every 10 years but that pales compared to the lost funds when you pay them yourselves every month on every property for those 10 years.

Some areas in CA require you to register them with the county upon foreclosure or face stiff fines.

They could turn around and move in and stiff you for the next month's rent, forcing you to evict.

Or you can install a longer piece of decking, (4-6ft) so it is rigid enough to stay stiff and not sag. 

Competition for properties is vulgarly stiff; plan on making a full list offer and having 10 competitive ones at list or higher within minutes. 

Absolutely not, never take a bribe from a applicant that is likely going to stiff you on your rent.

Much of California is going to have many of the same qualities as SF: high property prices, and stiff competition. 

So I pay the fees and go have a stiff drink. 

For working stiffs, having a mortgage can lower your tax rate from let's say 25% or more down to 15%, which is a significant drop.

It doesn't sound like they are trying to stiff you.I also would make sure there is a plan in place for checking in on the unit.