Monthly reduction or a month free?

[Eddie Ziv]

Here is more of a psychological question then financial. The tenant occupying one of my guest units is living at the end of the month (Contract expired.) I've been advertising for almost a month and although there is some traffic, no one shows serious interest. The unit have been rented for $1,300 a month. So here is the question: What would be more effective psychologically, reducing the rent by $100 a month or allowing first month free? Financially, if I go with the 2nd option, I lose $8 a month for the first year in compression to the first option, but I keep the rent at $1,300 not creating a precedent of price reduction. Your thoughts...