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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.

What Is Rent-to-Own?

Last Updated on April 28, 2026

Rent-to-own (also called Lease-to-Own) is a rental transaction that allows customers to obtain durable household goods immediately through renewal payments with the option to obtain ownership over time.

Unlike traditional financing, rental-purchase agreements do not involve borrowing money or taking on long-term debt. Instead, customers rent the product and may choose to continue renting toward ownership, exercise an Early Purchase Option, or return the item if they decide not to continue the agreement.

Understanding the Rent-to-Own Model #

Rent-to-own provides an alternative way for consumers to obtain durable household goods without requiring a traditional loan or credit financing.

In a typical rent-to-own transaction:

  1. A customer selects a product from a rent-to-own dealer
  2. The dealer provides a Rental-Purchase Agreement explaining payment terms and ownership options
  3. The customer takes the product home immediately and begins making renewal payments
  4. The customer may continue renting toward ownership or return the item if they decide not to continue the agreement

This structure allows consumers to obtain needed products immediately while maintaining flexibility in how the transaction is completed.

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

Key Characteristics of Rent-to-Own #

Rental-purchase agreements share several defining characteristics that distinguish them from traditional credit purchases.

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 Structure
Payments are typically made on a weekly, bi-weekly, or monthly basis, depending on the terms of the rental agreement.

Multiple Paths to Ownership
Customers may become owners by completing the full Renewal Payment schedule or by exercising an Early Purchase Option.

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

Return Option
Customers may return the item if they decide not to continue the rental agreement.

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

Products Offered Through Rent-to-Own #

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

Typical product categories include:

  • Appliances such as refrigerators, washers, and dryers
  • Furniture such as sofas, beds, and dining tables
  • Televisions and home electronics
  • Computers and gaming systems
  • Smartphones and tablets
  • Tires and wheels

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

Regulation of Rent-to-Own #

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

Most states have adopted rental-purchase statutes that establish rules governing rental-purchase agreements and require clear disclosures explaining the terms of the transaction.

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

Why Consumers Use Rent-to-Own #

Consumers choose rent-to-own for a variety of reasons, including the ability to obtain household goods immediately while spreading payments over time.

The flexibility built into rental-purchase agreements also allows customers to adjust the transaction if their circumstances change during the Rental Period.

➡ Learn more: Why Consumers Choose Rent-to-Own

Related Topics #

To explore the rent-to-own model in greater detail, see these educational resources:

Key Takeaways #

  • Rent-to-own is a lease, not a loan.
  • Customers obtain products immediately through renewal payments.
  • Agreements provide multiple paths to ownership, including early purchase options.
  • 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 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 development of rent-to-own retail in the United States and the evolution of the industry’s regulatory framework.

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.