Dennis,
Nothing free is ever really 'free'. There is invariably some catch associated with the bait, whether it is a time commitment for the tenant or something else. Don't get caught up in trying to be the low price leader; anyone who bases what will likely be a long-term decision on whether they get the first month free or not is likely to be a hassle of a customer.

Go with what differentiates you - you are not a chain, you live right there and go to the same stores as your customers, enjoy many of the same activities, etc etc. You're part of the community, not just someone looking to profit from it.

Took me a while, too, to get over the price thing when a prospect mentioned it. I don't apologize for it anymore; in fact, it helps to reinforce what folks get for their money, as in "since we're not the low price king, what do you think that thousands have seen that makes them comfortable with paying a little more?"

There are people who will always be driven by price and there are people who respect and appreciate value for their dollar. Give them reason to see the value and you won't just have satisfied customers, you'll have loyal customers.