My girlfriend and I stayed at Mirela's Apartments last summer on our trip around the Balkans. It was a very friendly and welcoming experience. We stayed in the one bedroom apartment on the main road in Prcanj, and the location is beyond excellent. It has its own private beach which is on the doorstep of the apartment, and a wonderful section of clear blue water which is a joy to swim in. It was lovely being able to wake up in the morning, look out of the window and see the whole of the Bay of Kotor - just beautiful!
The apartment itself was basic, but just what was needed for a great stay. Mirela herself was very friendly, and we met all the family as well. Indeed, they went out their way to welcome us, providing us with drinks, food (Mirela's mum gave us some cherries which we took back to the UK!), company and stories about Montenegro. They also provided us with transport - Mirela picked us up from Kotor when we arrived there, and her father, a taxi driver, even drove us to the train station when we were leaving!
If you want to experience Kotor, then I would definitely recommend staying in Prcanj. It's only a short taxi drive away from Kotor, but is away from all the hussle and bussle.
Overall, I would definitely recommend staying at Mirela's Apartments. The accommodation is exactly what you need, the location is great, and best of all, Mirela and her family are extremely welcoming and helpful. It is this personal touch which makes trips memorable, and it certainly made it memorable for us.