Rental property question?

We have a 2nd home which is under eminent domain. Because of the eminenet domain, we can't sell it (no one wants to buy it), but we rent it. We had it listed 2 times and people like it until they find out it is under eminent domain. We had a tenant that was renting it at a rate that was $230.00 less than the mortgage because that is all he could afford and we can't afford 2 mortgages under the CONDITION that he would work off the remaining amount at $15 pr hour for simple handy man work such as painting, small repairs etc. to the rental property as well as our home that we live in. We have this specified in our lease agreement with him and are now preparing to take him to court for the remaining balance of the monies that he did not perform work for. He doesn't think it is legal to sue him for unpaid work. I have everything documented in our Rental agreement so I think it is. Who is right? OR were we just taken advantage of by a prior tenant/use to be friend?