Sometimes municipalities provide sewer, water, garbage, or even electricity and if unpaid bills stack up their become liens as well.Might be easier to spend $200-300 and have a title search done to see what you are facing. 

Right now the current owners pay the tenants water and I would be billing that back to the tenant in their rent.

(normally recommended, especially if you are a landlord)- Water Backup: For water damage due to the backup of Sewers or Drains.- Personal Articles: Coverage for belongings that have a special or collectors valuesuch as Jewelery, Furs, Fine Arts, Collectibles, etc...Your age should not be a factor on the pricing but, depending on the company these other factors may get you credits:- Insurance Score (company pulls certain info out of your credit report)It is not your credit score but generally better credit will result in a better score- Time at your job- Education level- time at current residence" Good Luck

Electric, gas, water, sewer, garbage, internet, cable/satellite TV are all on the list.

Their old apartment had reoccurring water leaker coming from the roof.

If the tenant is paying for water/sewer and electric/gas, why would you want a coin-op? 

I figure 15% combined.What are the water/sewer and electric expenses for? 

The city quarterly bill has broken down the expenses into separate water and sewer costs, and the sewer is hovering around 400% more than the water.

Don't forget you'll need electric, water, and sewer hookups in your backyard , which may require permits.  

I've got a unit (townhouse) that has sustained some water damage as a result of contractor error when replacing the roof.