US EditionPublished • loading... • Updated
Renters Use ‘Rent Now, Pay Later’ Services to Manage Monthly Payments, but Fees Raise Concerns
Renters use rent-splitting services like Flex and Livble despite fees with effective annual percentage rates up to 139%, helping manage cash flow amid rising housing costs.
- This month, Flex reports about 1.5 million customers sending roughly $2 billion a month, joining Affirm in expanding rent-splitting options amid rising housing costs.
- Rising rents and unstable paychecks have driven demand as rents rose nearly 28% over five years, pushing roughly 109 million U.S. renters, many cost-burdened, to rely on Flex's lower-income and gig-economy users.
- Rent-Splitting firms typically pay landlords in full while renters, like a Sacramento renter using Flex, pay $14.99 subscription plus 1% of rent, with fees translating to APRs of 104% to 139%.
- Advocates warn these services often act like short-term loans, with credit-card fees passed to tenants costing about $37.50 to $52.50 on a $1,500 rent, and APR estimates of roughly 104% to 139%.
- Economists and renters' advocates warn these products typically function like short-term loans, with RealPage's Livble settling allegations last year and partnerships reporting rent to credit bureaus, raising systemic concerns.
Insights by Ground AI
65 Articles
65 Articles
The Macomb Daily+63 Reposted by 63 other sources
Renters use ‘rent now, pay later’ services to manage monthly payments, but fees raise concerns
By KEN SWEET and CORA LEWIS The Associated Press NEW YORK (AP) — Rent can eat up an entire paycheck at the start of the month, so a growing number of renters are turning to a financial product that promises relief by letting them split the bill — for a price. So-called “rent now, pay later” services have emerged over the past few years as housing costs climb and paychecks grow less predictable, particularly for lower-income and gig-economy worke…
Coverage Details
Total News Sources65
Leaning Left6Leaning Right5Center45Last UpdatedBias Distribution80% Center
Bias Distribution
- 80% of the sources are Center
80% Center
11%
C 80%
Factuality
To view factuality data please Upgrade to Premium
