Your problem is that your lease is not properly written. The tenants are meeting your lease requirements for utilities. It is just that your requirements are not adequate. You are also moving much too slow with the occupancy violations. Lastly, you can not jack up the rent because of the occupancy increase. You need to get started on moving the whole bunch out. Paying the rent late every month and moving in unauthorized tenants is a huge problem. If these tenants continue to take advantage of you it will be your fault for taking it.