We started this in a low risk area with a destination with families and not a lot of parties.

Perhaps a nice 1950's built bungalow.Always hire a 3rd party property inspector to give you an unbiased feel for the home.

You can always sign a new lease or change an existing lease as long as both parties agree to it. 

(The part I think is the hardest and I like the least.)

All you need is a qualified 3rd party intermediary and a new property. 

The idea being to promote studying instead partying (potentially decreasing the damage/complaints on the property), incentivizing the tenant to stay throughout their college career (decreasing turnover/vacancy), and developing some additional motivation for a tenant to choose my property over another similar property. 

Morale matters, and if we're going to argue that this is a business, all parties partaking in the business have to be happy in order to continue doing business...

Seems a good compromise for both parties.

I think the most frustrating part is that if its not broken out we have to leave utilities on when they aren't paying.

There are probably some uptight agents out there that would hold you to that agreement but if not's not working out it's usually beneficial for both parties to go separate ways at that point anyway.