Giving the Tenant Money?

[Peter Grosso]

Hello all, 

    Just bought a new property and I decided to move in a tenant from another property that I own because she is not comfortable with the neighbors.  The new place could probably rent for $1,000 a month but my reliable tenant can only pay $900.  I have to change the carpets and do some other nonstructural updates like painting and sanding.   

I am thinking about just offering my tenant $1,000 cash to do whatever updates they want and to leave me alone.   Anybody ever do this?  If I do it, how do I classify this expense when tax time comes?