Make less income or have more expenses?

[Cassie Chun]

One of my tenants is going to do the yard work/maintenance regularly. Is it better to take $100/month off his rent (make less income) or pay him $100/month (have more expenses)? In Hawaii, we pay 4% general excise tax on rental income. From a tax perspective, I'm not sure if it's better to have less income or more deductible rental expenses, or would it not matter either way?

[Twana Rasoul]

@Cassie Chun I personally would keep the rent the same, not lower it and pay tenant the $100 each time. It’s easier to not give someone $100 if they are not doing the work and a lot harder to get the tenant to give you $100 more in rent if they don’t do the work. Once they are used to the $100 less rent and they don’t do the work you put yourself in a not so great situation. Hope that makes sense. Best of luck!