Rent Now, Pay Later Services Grow as Housing Costs Climb

Flexible payment options come with fees that raise concerns about deepening financial pressure on renters

Published on Feb. 4, 2026

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A growing number of renters are turning to 'rent now, pay later' services that allow them to split rent payments into multiple installments, often for a fee. While these services aim to help renters manage cash flow, consumer advocates warn the fees can function like short-term loans with triple-digit effective interest rates, potentially exacerbating financial strain rather than easing it. As rents have jumped nearly 28% in the past five years, these flexible payment options are becoming more common, but raise questions about whether they address the underlying issue of housing affordability.

Why it matters

Rent now, pay later services have emerged as a way for renters, particularly lower-income and gig workers, to manage unpredictable cash flow and the rising cost of housing. However, the fees associated with these services can add significant costs, potentially deepening financial pressure on already strained budgets. This raises concerns about whether these products are truly helping renters or simply enabling landlords to charge even higher rents.

The details

Companies like Flex, Livble, and Affirm allow renters to pay rent in multiple installments, with Flex charging a $14.99 monthly subscription fee plus 1% of the total rent. Livble charges $30-$40 fees that can translate to effective APRs of 104-139%. While these services aim to provide flexibility, the fees function similarly to short-term loans. Renters may also use credit cards to pay rent, but landlords often pass along 2.5-3.5% processing fees to tenants, comparable to rent now, pay later services.

  • Rent prices have jumped nearly 28% in the past 5 years.
  • Flex launched in 2019 and now has 1.5 million customers sending $2 billion in monthly rent through its system.

The players

Flex

One of the largest companies focused on splitting rent payments, with 1.5 million customers sending $2 billion in monthly rent through its system.

Livble

A rent now, pay later service that charges $30-$40 fees, translating to effective APRs of 104-139%.

Affirm

A buy now, pay later company that is piloting a program allowing some customers to split rent into two payments.

Bilt

A credit card startup that targets renters and allows them to accumulate rewards or points by paying rent on the card.

RealPage

The owner of Livble, which last year settled allegations that its algorithm allowed landlords to collude and push rents higher.

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What’s next

Economists and renters' advocates argue that none of these financing options address the fundamental issue of affordability in the rental market. They worry that if these flexible payment options become more widely used, landlords may start factoring in renters' cash flow rather than local market rates when setting rents, potentially leading to further rent increases.

The takeaway

While rent now, pay later services aim to provide renters with more flexibility, the associated fees can function like short-term loans with high effective interest rates. This raises concerns that these products may be exacerbating financial pressure on renters rather than truly addressing the underlying issue of housing affordability.