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Rent-to-Own 101

New to rent-to-own? Explore the basics to understand how it works and why it matters.

The Rent-to-Own Model Explained

Last Updated on April 22, 2026

The rent-to-own model (also called Lease-to-Own) is a rental transaction that allows consumers to obtain durable household goods immediately through rental payments with the option to obtain ownership over time. The model operates as a retail transaction rather than a credit loan and typically includes flexible payment schedules, service support, and multiple pathways to ownership.

Introduction #

The rent-to-own model is a retail system designed to provide consumers with access to durable household goods through rental-purchase agreements.

Instead of requiring customers to pay the full purchase price upfront or obtain a traditional loan, rent-to-own dealers allow customers to take products home immediately and make payments over time through a Rental-Purchase Agreement. If the customer continues making payments or exercises an Early Purchase Option, ownership of the item may transfer to the customer.

Because rent-to-own transactions are structured as leases with the option to obtain ownership, they differ from both traditional retail purchases and credit financing.

Today, rent-to-own dealers operate across the United States and serve millions of households each year, providing access to products such as appliances, furniture, electronics, and technology goods.

The Structure of the Rent-to-Own Model #

At its core, the rent-to-own model is built around a Rental-Purchase Agreement.

This agreement explains:

  • the Rental Payment schedule
  • the duration of the Rental Period
  • the number of payments required for ownership
  • early purchase options
  • customer rights and responsibilities

Once the agreement is signed, the customer takes the product home and begins making payments according to the terms of the agreement.

During the Rental Period, the customer typically has several options:

  • continue making payments toward ownership
  • exercise an Early Purchase Option
  • return the item if they decide not to continue the agreement

➡ Learn more: How the Rent-to-Own Transaction Works

Core Characteristics of the Rent-to-Own Model #

Although rent-to-own transactions vary slightly between dealers, the model generally includes several defining characteristics.

Rent-to-Own Structure #

The transaction is structured as a lease with the option to obtain ownership, rather than a loan used to finance a purchase.

Flexible Payment Options #

Payments are usually made weekly, bi-weekly, or monthly, depending on the terms of the agreement.

Multiple Paths to Ownership #

Customers may become owners by:

➡ Learn more: How Customers Become Owners in Rent-to-Own

Return Flexibility #

Customers may return the item if they decide not to continue the Rental-Purchase Agreement.

➡ Learn more: Can You Return Rent-to-Own Items

Products Offered Through Rent-to-Own #

Rent-to-own dealers typically focus on durable household goods that families rely on for everyday living.

Common product categories include:

  • refrigerators and other kitchen appliances
  • washers and dryers
  • furniture such as sofas and bedroom sets
  • televisions and home entertainment systems
  • computers and gaming systems
  • smartphones and tablets
  • tires and wheels for personal vehicles

These products are often essential items that households may need to replace quickly when they stop working.

➡ Learn more: What Products Are Offered Through Rent-to-Own

Services Included in Rent-to-Own #

Unlike many traditional retail purchases, rent-to-own transactions often include additional services while the item remains under the Rental-Purchase Agreement.

These services may include:

  • delivery of large household goods
  • installation or setup
  • maintenance or repair during the Rental Period
  • replacement of malfunctioning items

These services help ensure that customers can continue using the products they rely on throughout the Rental-Purchase Agreement.

➡ Learn more: What Does “Service Included” Mean in Rent-to-Own

Regulation of Rent-to-Own Transactions #

In the United States, rent-to-own transactions operate within a defined legal framework.

Most states have adopted rental-purchase statutes, which establish rules governing rental-purchase agreements and require clear disclosures explaining payment schedules and ownership options.

Federal Consumer Protection Laws governing advertising practices and fair business conduct also apply to rent-to-own dealers.

➡ Learn more: How Rent-to-Own Is Regulated in the United States

The Role of Rent-to-Own in Retail Markets #

The rent-to-own model represents one of several ways consumers obtain household goods.

Other purchasing options include:

  • paying the full purchase price upfront
  • financing purchases through credit
  • leasing products through rental-purchase agreements

By offering rent-to-own transactions, rent-to-own dealers provide consumers with an additional option within the broader retail marketplace.

➡ Learn more: The Economics of Rent-to-Own: Why the Model Exists

Evolution of the Industry #

The rent-to-own industry has evolved over time as retail markets and consumer needs have changed.

Traditional storefront dealers remain an important part of the industry, while newer digital leasing platforms have expanded access to rent-to-own transactions through online retail environments.

These developments reflect broader changes in how consumers shop and obtain goods.

➡ Learn more: The Rent-to-Own Industry Explained

Key Takeaways #

  • Rent-to-own is a retail model, not a loan.
  • Customers obtain products immediately and make payments over time.
  • Agreements provide multiple pathways to ownership.
  • Customers may return the item instead of completing the agreement.
  • The industry operates under state rental-purchase laws and consumer protection standards.

Learn More About the Industry #

For a deeper exploration of the history and policy development of the rent-to-own industry, see:

The Rent-to-Own Revolution: The Definitive Industry History of Advocacy and Consumer Access

This work documents the historical evolution of rent-to-own retail and the development of the legal frameworks governing the industry.

Table of contents

Mike Lewis

Central Properties dba Premier Rental-Purchase

Mike Lewis is a Premier Rental Purchase franchisee with multiple stores and currently serves as Vice President of Operations. With 33 years of experience in the rent-to-own industry, he has spent the past 20 years working closely with franchisee owners and previously spent 12 years in Corporate RTO, gaining a strong foundation in the business.

For the past five years, Mike has been sharing his knowledge by teaching managers and franchisees at the company’s Training Center.

Outside of work, he enjoys time with his family, kids, and grandkids, and appreciates the simple things in life – especially riding his Harley Davidson with the sun on his face. If you know, you know!

Lauren Talicska

Arona Corporation dba Arona Home Essentials

Lauren Talicska is an experienced multi-channel marketing specialist and the Vice President of Marketing & Communications at Arona Home Essentials. She has found her home in the RTO community, supporting stores in branding, growth, and increasing traffic.

You may recognize Lauren as a former RTO vendor, including her time as a partner for Nationwide RentDirect, or her previous participation in the APRO Vendor Advisory Committee. Lauren calls Columbus, Ohio, home and spends her workday crafting and executing marketing promotions from inception to realization, all while supporting the branding and social media needs of all the Arona stores in 12 states (plus Puerto Rico!).

Charles Smitherman

APRO

Charles Smitherman, JD, PhD, CAE, became CEO of APRO in 2023, bringing years of legal and executive experience in the rent-to-own industry. 

Prior to joining the association, Charles served as COO, General Counsel, and Vice President of PTS Financial Services, where he played an active role in the rent-to-own industry by representing his company through PTS’s club program offering with APRO member dealers. Charles is an attorney with two decades of experience across a wide variety of areas, including RTO, consumer financial services, antitrust, corporate law, mergers and acquisitions, litigation, franchise law, and privacy law. Following law school at the University of Georgia, Charles earned a Master of Legal Studies and PhD in Law from the University of Oxford in England.

Charles is credentialed as a Certified Association Executive (CAE) with the American Society of Association Executives, a Certified Franchise Executive (CFE) with the International Franchise Association, and a Certified Information Privacy Professional (CIPP/US) and Certified Information Privacy Manager (CIPM) through the International Association of Privacy Professionals. As APRO’s sixth CEO in its 45-year history, he brings a collaborative, member-focused approach to association leadership, emphasizing transparency, advocacy, and value creation. Outside of work, Charles is an active ultra runner and open water swimmer.

Mike Kays

Ashley Furniture Industries

As VP of Rental Sales for Ashley Furniture Industries, Mike thrives on building relationships with our RTO industry veterans, and helping businesses grow through new product, new marketing, and new supply chain options.

Mike works to leverage a wide breadth of relationships and influence, intimate knowledge of market trends, and unique knowledge of what RTO dealers need from a supplier to be successful.

The saying goes that a high tide raises all boats, and our goal is to leverage the world’s largest furniture manufacturer to drive the continued growth of the RTO industry and all the suppliers.

Mike Tissot

Countryside Rentals Inc., dba Rent-2-Own

Mike grew up in the rent-to-own industry under the guidance of his father, former APRO President and RTO legend Darrell Tissot. For nearly 25 years, Mike’s innovative leadership has helped expand the family business to more than 40 stores across Ohio and Kentucky while also shaping the industry as a whole.

He has served as President of the Ohio Rental Dealers Association, an APRO board member and Treasurer, and President and Treasurer of the TRIB Group. His contributions have earned him the APRO President’s Award of Excellence and the title of APRO Rental Dealer of the Year.

Outside of RTO, Mike enjoys time at the lake house or in Orange Beach, Alabama, with his girlfriend, Angela Strong McCool. A passionate Cincinnati Reds fan, he rarely misses a game, whether watching or listening alongside his parents. He also takes every opportunity to visit Arizona, where his daughter is currently attending Arizona State University.