Rent Now, Pay Later Services Grow as Renters Struggle with Costs

Flexible payment options come with high fees, raising concerns about deepening financial pressures

Published on Feb. 4, 2026

Got story updates? Submit your updates here. ›

A growing number of renters are turning to 'rent now, pay later' services that allow them to split rent payments into multiple installments, but these services often come with high fees that can translate into triple-digit effective interest rates. While the services aim to help renters manage cash flow, consumer advocates warn they function like short-term loans that add to already strained budgets. As housing costs continue to rise, these flexible payment options raise concerns that landlords may start factoring in renters' weekly cash flow rather than local market rates, potentially driving rents even higher.

Why it matters

Rent affordability is a major issue, with the Census Bureau estimating that a large share of renter households pay 30% or more of their monthly income on rent, making them 'cost burdened'. These flexible payment services claim to help, but critics argue the fees and interest rates could actually deepen financial pressures for vulnerable renters.

The details

Companies like Flex, Livble, and Affirm allow renters to split their monthly rent into multiple payments, with Flex charging a $14.99 monthly subscription fee plus 1% of the total rent. For a $1,850 rent, this would amount to over $33 in monthly fees. Livble charges $30-$40 per transaction, translating to effective annual percentage rates of 104% to 139%. While these services aim to help renters manage cash flow, the fees function like short-term loan costs, potentially exacerbating financial strain.

  • Rent prices have jumped nearly 28% in the past five years, according to the Bureau of Labor Statistics.

The players

Flex

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

Livble

A rent payment service that does not charge a subscription but collects fees ranging from $30 to $40 per transaction, resulting in effective annual percentage rates of 104% to 139%.

Affirm

A buy now, pay later company that is piloting a program allowing some customers to split rent into two payments, though it claims not to be charging renters interest or fees.

Kellen Johnson

A 44-year-old renter who used Flex to split his $1,850 rent, paying $1,350 on the first and $500 on the 15th, while incurring over $33 in monthly fees.

Mike Pierce

The executive director of Protect Borrowers, who previously worked at the Consumer Financial Protection Bureau and warns renters to be skeptical of any financing providers that have partnered with landlords.

Got photos? Submit your photos here. ›

What they’re saying

“Renters should be skeptical of any financing providers that have partnered with a landlord and be skeptical of anything that sells itself as no fees or no interest.”

— Mike Pierce, Executive Director, Protect Borrowers (Newser)

“It was an expense that I was incurring, but I went ahead as it was more convenient.”

— Kellen Johnson (Newser)

What’s next

Economists and renters' advocates argue that these flexible payment options do not address the fundamental issue of affordability in the rental market, and they worry that landlords may start factoring in renters' weekly cash flow rather than local market rates, potentially driving rents even higher.

The takeaway

While 'rent now, pay later' services aim to help renters manage cash flow, the high fees associated with these products can function like short-term loans, potentially deepening financial pressures for vulnerable renters rather than providing relief. As housing costs continue to rise, these flexible payment options raise concerns about further exacerbating the affordability crisis.