. --- We were sued many years ago, along with the owner, because tenant claimed owner's contractor sexually assaulted them!

That way, there is some type of cushion to help against any high usage months, should they just happen to use more than your previous tenants did, or if you unfortunately get tenants who abuse the "utilities included" opportunity. 

Washer/dryers are often abused, so there's the initial cost of purchase and the risk of increased repairs.

I've lost friends and family to substance abuse so it seemed like an opportunity to do some good and make money in the process.I negotiated a sweet deal, and was prepared to buy it myself, but a few of my clients expressed interest and I ended up helping two of them form a partnership.

There are a lot of jurisdictions (most of the West Coast now) that include marital status, sexual orientation, and others under their fair housing regulations.

I wouldn't charge the tenant for that.The second leak was abuse/neglect, so I would definitely charge.

This area and this house will attract some of the worst STR abusers you can find.  

I would just cap it generously to only catch abusers and figure the normal running costs in your rent. 

Poor communicators, poor housekeeping skills, prescription med abuse, big dogs that they couldn't properly care for, damaging, etc.

This is the simplest method, but it also means your tenants are more likely to abuse the utilities by leaving windows open with the heat or A/C running, leaving lights on, ignoring the toilet that constantly flushes on its own, etc.3.