Proper way to pay renter that does some work?

[John Stevenson]

If a renter does some repairs or maintenance for you, can you deduct it from their rent on the books? Is this okay to do? Or, do you have to make them pay full rent and then pay them and 1099 them (assuming it is over the minimum)? 

This would make their rent look erratic on the books, but would require less transactions and probably make the tax burden less on the renter? I am just not sure if it is okay to simply deduct it from the rent.