Drop in Rental Income - How Far???

Advice needed please!!

I've heard that properties are getting very difficult to let, and that prices in Spain are being reduced, but how far?

I've had a tenant in my house in Spain for 9 months (via letting agent).  I should say that the first term was for 6 months, and tenant is part way though second six month term. 

The tenant (English) went into the letting agent's today and said that he would like the rent dropped by €100 per month, or else he would not consider re-newing. 

Last year I received a substantial amount less rent than the year before.  The year before I was with another agent who just deducted his letting fees, but the tenant had to pay his own utilities (gas, electric, water) and  TV.  With this tenant I have to sub. him by €75 per month for them!  So on this method, combined with higher letting fees, overall I have been €100 per month worse off!!

At the moment I am unable to get to Spain, so it would be handy to have someone in the house.  I have logged on to various rental websites to see the price of properties but would appreciate the view of someone on the spot - there's a difference between the price that someone asks in the rentals - and the chance of getting a tenant.

I have a large, modern two bedroomed end of terrance; big garden; parking; air con; and all usual white goods plus of course the TV!!  How much do you think that I should reasonably be expected to get - if there is an elusive tenant around - or is it better to "bite the bullet" and stick with the one that I know???

Sorry, I seem to have waffled on a bit - must be getting old!!

My first, best advise for tenants: submitt your contract to arbitration... not to Courts.

I have a simular question. We signed a 3 year lease and wish to leave early. If the landlady won't let us out of the contract and we give notice and move anyways what options does she have. Basicly we'd be leaving 3 months early.

My understanding would be this, she'd hire a lawyer and sue us for 3 months rent apporx 3000€, but if we move on what options does she have to recover the money. Of course this applies both ways, landlords with tennats that owed them money.