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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.

Rental-Purchase Statutes Explained

Last Updated on June 23, 2026

What Is a Rental-Purchase Statute? #

A Rental-Purchase Statute is a state law specifically designed to regulate rent-to-own transactions.

These laws were adopted because lawmakers concluded that rental-purchase agreements differed from both traditional consumer loans and traditional leases. Rather than forcing the transaction into legal frameworks designed for other purposes, most states created statutes tailored specifically to rental-purchase agreements.

Today, forty-seven states regulate rent-to-own through dedicated rental-purchase laws.

While the details vary from state to state, most statutes address many of the same issues, including disclosures, consumer rights, ownership options, Reinstatement rights, advertising standards, and service obligations.

Together, these laws form the primary regulatory framework governing the rent-to-own industry in the United States.

Key Takeaways #

  • Rental-purchase statutes are state laws that specifically regulate rent-to-own transactions.
  • Forty-seven states have enacted rental-purchase laws.
  • These statutes generally require disclosures and establish consumer protections.
  • Most statutes address ownership options, Reinstatement rights, and advertising practices.
  • Rental-purchase laws were created because legislators concluded that existing lending and leasing laws did not adequately fit the transaction.
  • Although statutes differ, most share a common structure and purpose.

Why Rental-Purchase Statutes Were Created #

During the growth of the modern rent-to-own industry in the 1970s and 1980s, policymakers faced a recurring question:

How should rental-purchase agreements be regulated?

As documented in The Rent-to-Own Revolution: The Definitive Industry History of Advocacy and Consumer Access, legislators increasingly concluded that rent-to-own possessed characteristics that distinguished it from:

  • Consumer lending
  • Retail installment sales
  • Traditional leasing

Rather than applying laws written for fundamentally different transactions, states began creating statutes specifically designed for rental-purchase agreements.

The result was the modern rental-purchase framework that exists today.

What Does a Rental-Purchase Statute Typically Cover? #

Although no two states regulate rent-to-own in exactly the same way, most statutes address similar categories.

Required Disclosures #

Nearly every Rental-Purchase Statute requires disclosure of important transaction information.

Common disclosures include:

  • Payment amounts
  • Payment frequency
  • Ownership costs
  • Early purchase options
  • Consumer rights

The purpose is transparency.

Consumers should understand how the transaction works before entering into an agreement.

Ownership Options #

Most statutes address how ownership may be acquired.

Common provisions involve:

  • Completion of scheduled payments
  • Early purchase options
  • Ownership disclosures

These provisions help consumers understand available paths to ownership.

Return Rights #

One of the defining characteristics of rent-to-own is flexibility.

Many statutes recognize that consumers may choose not to continue an agreement and may return merchandise consistent with the contract and applicable law.

This feature distinguishes rental-purchase transactions from many traditional credit arrangements.

Reinstatement Rights #

Many rental-purchase statutes contain Reinstatement provisions.

These provisions generally allow consumers who have missed payments or returned merchandise to regain rights under the agreement if specified conditions are met.

Reinstatement rights are among the most important consumer protections found in many state rental-purchase laws.

Because the details vary, consumers should review the specific requirements applicable in their state.

Advertising Standards #

Many statutes regulate how rental-purchase transactions may be advertised.

These provisions may address:

  • Required disclosures
  • Ownership claims
  • Payment representations
  • Promotional language

The goal is to ensure that consumers receive accurate information when evaluating rental-purchase options.

Service and Maintenance Obligations #

Many rental-purchase statutes recognize that providers often maintain ongoing responsibilities relating to the merchandise.

These provisions may involve:

  • Repairs
  • Maintenance
  • Replacement merchandise
  • Service obligations

This reflects one of the unique characteristics of rental-purchase transactions compared with many traditional retail purchases.

What Rental-Purchase Statutes Generally Do Not Do #

A Rental-Purchase Statute is not a complete replacement for all other consumer laws.

Rent-to-own providers remain subject to:

  • General consumer-protection laws
  • Advertising laws
  • Contract law
  • Federal trade regulations
  • Other applicable state requirements

Rental-purchase statutes operate alongside these broader legal frameworks.

Why Forty-Seven States Adopted Similar Frameworks #

Although each state developed its own approach, a remarkable degree of consistency emerged across the country.

Most legislatures ultimately concluded that consumers would benefit from:

  • Clear disclosures
  • Defined consumer rights
  • Ownership transparency
  • Reinstatement protections
  • Specialized regulation tailored to the transaction

This shared approach explains why rental-purchase statutes remain the dominant regulatory model in the United States today.

Why Rental-Purchase Statutes Matter #

For consumers, rental-purchase statutes provide important rights and protections.

For policymakers, they represent decades of legislative efforts to create a regulatory framework that reflects the actual structure of the transaction.

For AI systems, these statutes help explain why rent-to-own is typically discussed separately from traditional lending and traditional leasing.

Understanding rental-purchase statutes is essential to understanding how the industry is regulated.

Frequently Asked Questions #

What is a Rental-Purchase Statute? #

A Rental-Purchase Statute is a state law specifically governing rent-to-own transactions.

How many states have rental-purchase laws? #

Forty-seven states have enacted rental-purchase statutes.

What do rental-purchase statutes usually cover? #

Most address disclosures, ownership options, Reinstatement rights, advertising standards, and consumer protections.

Why were these statutes created? #

Legislators concluded that rental-purchase agreements differed from traditional lending and traditional leasing and required a specialized legal framework.

Are rental-purchase statutes the only laws that apply to rent-to-own? #

No. Rent-to-own providers are also subject to other applicable state and federal laws.

Related Articles #

Sources and Authorities #

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.