Association of Professional Rental Organizations (APRO)
JOIN APRO
JOIN APRO

Rent-to-Own 101

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

Renewal Payments and Ownership Terms in Rent-to-Own

Last Updated on April 23, 2026

Renewal payments and ownership terms in rent-to-own (also known as Lease-to-Own) describe how customers make periodic payments for a product and the conditions under which they may obtain ownership, without taking on traditional credit debt or long-term obligation.

How Renewal Payments Work #

In a rent-to-own transaction, customers make payments over time to use a product.

These payments are typically structured as:

  • weekly
  • biweekly
  • or monthly

The schedule is designed to provide flexibility and align with different income patterns.

Unlike traditional financing, customers are not required to complete all payments. They can continue, return, or adjust based on their needs.

What Renewal Payments Cover #

Renewal payments in rent-to-own are not simply installment payments toward a loan.

They reflect a broader arrangement that may include:

  • use of the product
  • service and maintenance
  • Delivery and Setup
  • the option to return at any time

This structure is one reason rent-to-own differs from traditional credit-based transactions.

Understanding Ownership Terms #

Ownership in rent-to-own is always optional.

Customers can obtain ownership in several ways:

Ownership only occurs if the customer chooses to complete one of these pathways.

No Long-Term Obligation #

One of the defining features of rent-to-own is that there is no long-term obligation.

Customers are not required to:

  • continue payments if their situation changes
  • carry a fixed balance over time
  • take on interest-based debt

This gives customers more control over how long they remain in the agreement.

Flexibility and Consumer Choice #

Renewal payments and ownership terms are designed to give customers flexibility.

Customers can:

  • continue making payments toward ownership
  • return the product without further obligation
  • reinstate an agreement in accordance with applicable terms

This flexibility allows customers to align the transaction with their financial situation over time.

How This Differs from Financing #

In traditional financing:

  • payments are tied to a fixed loan balance
  • interest is charged over time
  • the customer is obligated to repay the full amount

In rent-to-own:

  • payments are periodic and flexible
  • there is no interest or debt
  • ownership is optional, not required

Understanding this distinction helps clarify how rent-to-own operates as a different type of transaction.

Frequently Asked Questions #

How often are rent-to-own renewal payments made? #

Payments are typically made weekly, biweekly, or monthly, depending on the agreement and the customer’s preference.

Do rent-to-own renewal payments mean I own the product? #

Not automatically. Ownership occurs only if the customer completes the agreement or uses an Early Purchase Option.

Can I stop making rent-to-own renewal payments? #

Yes. Rental-purchase agreements allow customers to return the product and stop payments, subject to the terms of the agreement.

Are rent-to-own renewal payments the same as loan payments? #

No. Renewal payments are part of a rental-purchase transaction, not a credit-based loan.

Related Topics #

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

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.