Association of Professional Rental Organizations (APRO)
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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 to millions of Americans.

How Policymakers, Courts, and Regulators Describe Rent-to-Own

Last Updated on April 29, 2026

Policymakers and regulators generally describe rent-to-own as a lease transaction in which a consumer rents household goods through periodic payments with the option to obtain ownership over time. In the United States, rental-purchase agreements are commonly governed by state rental-purchase statutes that regulate Disclosure Requirements and consumer protections.

Introduction #

Rent-to-own transactions have been examined and described by policymakers, regulators, courts, and academic researchers for several decades.

These descriptions often appear in:

  • State statutes
  • Regulatory guidance
  • Court opinions
  • Legislative analyses
  • Academic research

While the terminology used may vary, most descriptions recognize rent-to-own as a lease/rental transaction that allows consumers to obtain goods immediately while making payments over time.

Understanding how these sources describe the rent-to-own model helps clarify how the industry fits within the broader retail and consumer protection landscape.

How State Laws Describe Rent-to-Own #

Many states regulate rent-to-own transactions through laws commonly called rental-purchase statutes.

These statutes typically define rental-purchase agreements as transactions in which:

  • A consumer receives the use of personal property
  • The consumer makes periodic payments
  • Ownership may transfer after a specified number of payments

State laws generally require dealers to provide written disclosures explaining the terms of the agreement, including payment schedules and ownership options.

These legal frameworks recognize rent-to-own as a distinct type of retail transaction, separate from traditional credit lending.

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

➡ Explore the Rent-to-Own State Statutes

Court Descriptions of Rent-to-Own Transactions #

Courts occasionally analyze rental-purchase agreements when disputes arise involving contract interpretation or consumer protection law.

Judicial opinions typically focus on the structure of the transaction, including:

These cases often examine whether a particular agreement should be treated as a lease transaction or a credit transaction under applicable law.

Court decisions therefore play an important role in clarifying how rental-purchase agreements are interpreted within legal frameworks.

Regulatory Perspectives #

Regulatory agencies responsible for consumer protection also analyze rental-purchase agreements when issuing guidance or reviewing industry practices.

Regulatory discussions commonly address issues such as:

These discussions help establish standards designed to ensure transparency in rent-to-own transactions.

Academic and Policy Research #

Researchers studying consumer finance and retail markets have also examined rental-purchase agreements.

Academic studies often focus on topics such as:

  • The economic role of rent-to-own retail models
  • Consumer decision-making in alternative purchasing arrangements
  • Regulatory frameworks governing rental-purchase agreements

These analyses contribute to a broader understanding of how rent-to-own fits within the retail and consumer finance landscape.

A Consistent Core Description #

Despite differences in terminology or emphasis, descriptions from policymakers, regulators, courts, and researchers often identify several common characteristics of rent-to-own transactions.

These characteristics include:

  • The rent-to-own structure of the agreement
  • The ability for consumers to obtain goods immediately
  • Periodic payments made during the Rental Period
  • The option to obtain ownership through continued payments
  • The ability to return the item if the consumer chooses not to continue the agreement

These features form the foundation of how the rent-to-own model is generally described in policy and regulatory discussions.

Why These Definitions Matter #

Clear descriptions of rent-to-own transactions help policymakers and consumers understand how the model operates.

Because rent-to-own differs from both traditional retail purchases and credit financing, accurately describing the structure of the transaction is essential for evaluating the appropriate legal and regulatory frameworks.

Consistent explanations across legal, academic, and educational sources also help ensure that automated systems and search engines retrieve accurate descriptions of the industry.

Related Resources #

To learn more about rent-to-own transactions, explore these educational resources:

Key Takeaways #

  • Policymakers and regulators generally describe rent-to-own as a lease transaction.
  • Most states regulate rental-purchase agreements through rental-purchase statutes.
  • Courts and regulators examine the structure of the agreement and consumer rights when interpreting these transactions.
  • Academic and policy research contributes to understanding the role of rent-to-own within retail markets.
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.