How to negotiate in a red-hot rental market

• Set a budget: Spend no more than 30 percent of your monthly take-home pay. Your landlord will probably ask for the first month's rent and a security deposit. Don't forget to factor in utilities, cable, Internet, phone service and renters insurance. If utilities aren't included in the rent, ask for an estimate. Also inquire about extra fees — for parking or pets, for example. Consider doubling up with a roommate to share expenses.

• Do your homework: Narrow down the neighborhoods that appeal to you using your budget as a guide. Check websites like Apartments.com, Rent.com and Craigslist.org to compare rent. Keep in mind there can be huge discrepancies among units in the same building, depending upon views, floor level, and upgrades.

• Prioritize amenities: If you have children, you may want an on-premise laundry, a playground or pool. If you own a car, you'll want convenient parking. Other perks to look for include gyms, tennis courts, dog walks and roof decks. When you visit a complex, ask residents for their opinions. They likely will give an honest assessment.

• Avoid last-minute decisions: Landlords likely will run a criminal-background check and a credit check before you sign a lease. Be prepared to provide identification and your Social Security number. Landlords also may want proof of a job, such as a letter from your employer or pay stubs.

• If you plan on staying in your unit, ask about potential increases and consider signing an extension to lock in your current rate. "Most landlords would rather have a long-term tenant than a vacancy," says landlord Christopher Benis.

• Resolve credit-related issues in advance. "Be upfront about your credit history should it be less than perfect," says Cassie Walker Johnson of Windermere Property Management.

• Work with your landlord if you are experiencing money problems. "Almost all landlords will work with someone who has a temporary setback, as long as the plan is reasonable and the tenant is proactive," Benis says. "You don't want to justify your two months past-due rent in front of a judge. You want to work with the manager or owner and then stick to that plan so you don't lose credibility."

• Ask about any manager's specials and bring ads from nearby apartments if they offer lower rents. Some landlords may try to match the rent. New developments often offer incentives such as one to two months rent-free for new tenants. Other landlords will reduce the monthly rent if you sign a two- or three-year lease.

• Read the entire lease before signing. Are the terms correct? Is the rent accurate?

Understand the rules regarding apartment improvements, pets, subletting, security deposits, noise violations and common areas. Note any penalties for terminating the lease early or leaving the apartment in bad condition. Include any repairs that need to be done in the lease and document damage that is already present. If you read something that doesn't make sense, it's better to ask than to assume.

This report contains information from The Associated Press.