Tenant's income is decreasing by $1k a month

[Ryan Ahlgrim]

I have a scenario going on right now and I'm curious how other landlords would respond. I have a pair of inherited tenants who's income will be decreasing by $1k a month. They're a nice older couple. They've never been a problem, always pay rent on time, and talk about one day wanting to buy the house since they'd like to stay put for a long time. They called me yesterday to explain their situation and asked if I could give them a break on their rent. After reviewing their current lease I figured I could drop the rent $75/mo if they'd be willing to renew their lease for an additional 36 months. The $75 would basically be coming out of what I hold back each month for vacancy. If someone leases for 12 months I hold back 8% of the rent, if they do 36 months I'm comfortable holding back 2%. How would you have handled the situation?