Tenants want a rent reduction

[Sinead MacFhionnlaoich]

My tenants have rented the property for 2.5 years and have always been good tenants. I rent the property about at market rent, i don’t include certain utilities in the rent cost (water, electric, gas), i have laundry units and have no pet restrictions. My tenants recently messaged me and asked for a $250 reduction in rent per month and to not be charged for utilities (about $200 a month). I live in an area where rents have been steadily increasing and I know with inflation everyone is struggling these days. 

I don’t want to lose my tenants but a $450 a month reduction is going to really impact my ability to upkeep the property. I’m considering offering a $200 a month reduction but obviously I’d rather keep it as it is. 

I would really appreciate any advice; I’ve never been in a situation like this before.