Rent Now, Pay Later Services Raise Concerns Over Fees

Consumer advocates warn 'rent now, pay later' products function like short-term loans with high fees and interest rates.

Published on Feb. 7, 2026

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A growing number of renters are turning to 'rent now, pay later' services to manage their housing costs, but consumer advocates warn these products typically function like short-term loans, adding fees and carrying triple-digit effective interest rates that may deepen financial pressure rather than ease it.

Why it matters

As housing costs continue to rise and the gig economy expands, 'rent now, pay later' services have emerged as a way for renters to split their rent payments. However, the high fees and interest rates associated with these products raise concerns about whether they truly help renters or simply create new financial burdens.

The details

Companies like Flex, Livble and Affirm allow renters to pay their rent in multiple installments throughout the month, rather than a lump sum at the start. But these services come with fees that can translate to effective annual percentage rates of over 100%. For example, Kellen Johnson paid a $23.99 monthly subscription fee plus 5% of his $1,800 rent when using Flex, bringing his total monthly charges to over $112.

  • Kellen Johnson started using Flex to split his rent payments about two years ago.
  • The Bureau of Labor Statistics estimates rents have jumped nearly 20% in the past five years.

The players

Flex

One of the largest companies focused on splitting rent payments, Flex says its 1.5 million customers now send about $2 billion a month in rent through its system, and several of the country's largest landlords accept Flex as a payment option.

Livble

A rent payment service that charges fees ranging from $30 to $50, which can translate to effective annual percentage rates of about 105% to 128% depending on how long the renter defers part of the payment.

Affirm

A company piloting a program that allows some customers to split rent payments, though Affirm says it is not charging renters interest or fees to use the product, and the fees are charged to landlords instead.

Mike Pierce

The executive director of Protect Borrowers, who previously worked at the Consumer Financial Protection Bureau, warns renters should be skeptical of any financing providers that have partnered with landlords and of anything that sells itself as having no fees or no interest.

Kellen Johnson

A renter who used Flex to split his $1,800 monthly rent, paying $1,350 on the first and $450 on the 15th, while incurring a $23.99 monthly subscription fee plus 5% of the total rent.

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What they’re saying

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

— Mike Pierce, Executive Director, Protect Borrowers

“I was willing to pay the extra costs in part because I worked as an independently contracted delivery person for Amazon at the time, and his paycheck was convenient.”

— Kellen Johnson

The takeaway

As housing affordability remains a major challenge, 'rent now, pay later' services offer a temporary solution but raise concerns about deepening financial burdens for vulnerable renters through high fees and interest rates. Addressing the root causes of rising rents may be a more effective long-term approach than relying on these types of financial products.