Rent to Own Online
"All Rent to Own...All the Time"


| About RTO Online | RTO Tradeshow | Press
#1 Online Destination For the Rent to Own Industry
Trade portal for companies who rent to own furniture, electronics, appliances, custom wheels, jewelry and other home goods.
Rent to Own Online
Rent to Own Tradeshow
Who's Who in rent to own  
Rent to Own Jobs and Resumes  
Search Rent to Own Online  
Subscribe to
RTO Magazine

E-mail Address :

Manage Subscriptions
United States Rent to Own Store Locator  
State Rent to Own Law  
Rent to Own Websites  
Rent to Own Industry Poll  
Editorials By Rent to Own Professionals  
Rent to Own Stocks  
Rent to Own Links  
Rent to Own Industry Events  
Rent to Own Online Archive  
Rent to Own Industry Training  
Advertise on the number one website for rent to own professionals  
Rent to Own Industry Blog  
Rent to Own Chat  
Rent to Own Industry Forum  
Rent to Own Industry Glossary  
National News  
Contact Rent to Own Online  
Aug 02
RTO Magazine
(Back to Archive Home)

Today's Featured State Rental Purchase Statute
new Ohio Lease Purchase Statute
Feature includes clickable table of contents, factoids...more

Rent A Center Files Required Affidavit Affirming Accuracy of Financial Statements
All public companies with revenue over $1.2 billion must file the affidavit. 947 companies meet the criteria. Rent A Center is the only rent to own among the companies required to file by the August 14 deadline...more

Audio Webcast
Interview with Jay Roberts on the importance of maintaining a tight Card Close. RTO Online recently conducted a poll on "Card Close". Over 52% of those responding reported 'Higher than 10% past due Saturday Close...more

RTO Online is proud to introduce Scott Brinker as a Contributor to RTO Online. Scott is a Rent to Own Operations Consultant for RTO Consulting and Management Inc...more

Rent Way Q3 Net Loss $6 million...revises forecast
Rent Way stock took a dive at the opening bell, falling by 25%. At publishing time...more

Rent Way Names Bill Short Senior VP Operations
Rent Way announced the appointment of William (Bill) Short as Senior VP, Operations. Mr. Short replaces Jeff Underwood, who has been re-assigned as Divisional VP, Florida...more

Rent A Center Mourns the Loss of Former Executive Dowell Arnette
Long time Rent A Center executive and well known RTO industry veteran Dowell L. Arnette, died Monday...more

Featured State Rental Purchase Statutes
We have begun featuring various States. Starting  with Virginia, New York Michigan, and Texas. We include a printable version, interesting factoids, and a clickable table of contents for easy navigation.

RTO Enterprises Releases Q2 Results
RTO Enterprises announced significantly improved results for Q2. Some highlights...Same store sales up 5.9%, Revenue up 8.3%, Operating income before tax more than doubled to $1.46 million from $676,000 in 01, Pre tax income up by a factor of 10. $946,000 versus $80,000 Q2 2001...more

Rent A Center Conference Call Summary
Interesting quote...

Mitch Fadel

"Acquisitions are coming at very attractive multiples. Depending on the revenue of the store we're buying, we've been paying anywhere from 6 - 9 times the month {revenue} for the store"
"...honestly, the only problem we've had with new stores is finding them fast enough". See a complete summary of the call


Ranking the Big Six...
Rent to Own has changed drastically in the last decade. There are several models being used today. These different models are best observed in the large chains. Contributing Editor Dan Companion has broken down 5 key variables on a per-store basis and ranked the 6 publicly held North American RTO companies...more

Rainbow Rentals Conference Call Summary
Interesting quote...

Wayland Russell

"A higher average price per unit, and an improved efficiency at our stores, has enabled us to improve performance without a significant increase in deliveries per store." See a complete summary of the call

Urgent: Contact Your Senator
The future of Federal Rental Purchase Legislation may depend on what you do in the next few days...more

RTO Enterprises Announces Reverse Stock Split
RTO Enterprises, Canada's largest Rent to Own, announced the implementation of a stockholder approved '1 for 10' reverse stock split...more

Interview with Ken Butler
RTO Online interviewed Ken Butler, President of Aaron Rents, Sales and Lease Ownership division, after the quarterly earnings conference call on the 'Who's number 2' question, and the future of Aaron Rents...more


It's time for our monthly reminder to print out your states Missing Child Poster to display on your counter. All Rent to Owns should participate in this could save a child's life.  Follow this link to view and print your poster.


New York State Rental Purchase Statute
We have received several requests recently for the New York State Rental Purchase Agreement Statute. While not easy to find, it is available online. We have included a clickable table of contents, factoids, and a printable version of the bill...more

Rent A Center Earnings up 62.9%
Rent A Center reported a monstrous 62.9% increase in net earnings over 2001...more

57 08-28-02
Online Discussion Groups
BONUS: Online Spreadsheet
56 08-21-02 RTO Online offers FREE chat rooms for industry pro's
55 08-14-02 Audio Webcast: Jay Roberts on the importance of maintaining a tight Card Close
54 08-07-02 Another Way to Measure Delinquency
Reader Comments

Online Discussion Groups
BONUS: Online Spreadsheet

  • Helpful
    The spreadsheet is GREAT!
  • I have Tears of Joy
    We have needed a decent discussion group for a long time. Thanks!
    PS: Why do we have to register?
    Response: Registration is meant to reduce the odds of 'slammers' entering the discussion group.



RTO Online offers FREE chat rooms for industry pro's

  • Just OK
    What's with the flashing screen?
    Response: Chat functions require the screen to 'refresh' often in order to display replies. We are working on a less...annoying solution
  • Helpful
    Nice, but it's hard to find anyone there
    Response: It's best to email or instant message a colleague to let them know your going to be on the board. There is a link on the login page that allows you to email friends.

Audio Webcast: Jay Roberts on the importance of maintaining a tight Card Close

  • I have tears of Joy
    Jay, your statements are "spot on" and your level of understanding about collections inspiring.  Thank you for putting it out there!
  • Helpful
    Consistency is the single biggest issue when it comes to communicating with our customers.  The industry has a huge problem with vocabulary which is evident in this interview.  Jay refers to collections as credit and yet we never had debt. So what is it: Past due rent, Delinquency Dollars, or just plain old MONEY OWED for services rendered.  The industry refers to renting an item as sales, yet we never transfer ownership.  Our own worst enemies are the wonderful marketing departments that look to lure the consumers into a false sense of understanding. The million dollar question is: Is there really a rent-to-own transaction or just a week-to-week rental agreement offering a quasi-sale opportunity.  90 Days Same-As-Cash, Pay One Week get three free, and own it 6 months.  It's this inconsistency that turns what seems like pure and simple 3 1/2% close transaction into a wild 8%-12% close transaction.  Not to mention the customers unwillingness to ever look at your store again because you enforced the perfect rental agreement perspective.  Not to mention your competitors could be sending a much different message to the same customer, Say "Those guys are just not very customer friendly."   It's what makes a complete system across the board so important.
    Response: I felt compelled to respond for clarification purposes. I agree that consistency is very important when communicating with our customers. Communicating effectively the rent to own philosophy. What is acceptable and what is not. Carrying the account 3 or 4 weeks past due is not acceptable under any circumstances. .

    As to our worst enemies, there is two types of advertising in our industry. Price driven and value driven. It is the lack of understanding of this concept on the part of the marketing departments that looks to lure the consumer into the store. If the customer does not fully understand the transaction, who's fault is it? The answer is everyone up the chain of command from the employee that dealt with that customer all the way to the CEO.

    To answer your Million Dollar Question; YES there is, and it is a week to week or month to month Agreement that is required to be renewed in advance, whereas ownership of the item is transferred into the name of the customer in the form of a "Paid In Full" receipt upon them making their final renewal payment or exercising their right to acquire ownership by paying the item off early, if that option is available in the Rental Agreement. Every Rental Agreement with every customer I have ever closed gave the customer three options; 1) Renew the Agreement 2) Buy the Property or 3) Return the Property to the store. That is what I'm talking about when I discuss the enforcement of the Agreement.

    In closing, I must address the unwillingness of the customer to ever look at your store again. Is this in the event we pick up the item they were renting? If so, it is vitally important that the last contact with the customer sends the message that we're not mad at them and above all things we want their business. Close the contact in a manner that motivates the customer to come back in a re-rent the items when their financial situation improves.

Another Way to Measure Delinquency

  • Better than War and Peace
    Being an independent owner, I learned some of these on my own, but I love the great new points system, and yes, the number one mistake is the renewal.  Now we have been calling our customer and saying "it's time to renew" and they say...what's that.  Most people are used to... "Make a payment on your couch "instead of renew your agreement on our leased furniture".  Thanks!

  • Better than War and Peace
    You're 100% correct about blurring the line with multiple rates and terms on the same item. [Pre-Rented Merchandise Reducing Rate vs Reducing Term] However as we must control inventory in order to be profitable, there has to be some rate reduction to motivate the customer to accept the Pre-rented item. If the pre-rents are the exact same weekly rates as the new ones most customers are going to want the BRAND NEW ONE. Before long the store is overstocked with only pre-rents and Customers can see the difference! Since you have already recovered some of your cost back I see no problem reducing the rate. You must be mindful of your gross margin when using the rate reduction method!
  • I have tears of Joy
    Thanks for a great article! I have set due dates to match day after customers payday for years and it has always worked! Imagine That...set the due date for the convenience of the customer instead of the account manager! Point system is interesting as well! Thanks for sharing!
    Larry S.

  • Helpful
    I thought your story [Pre-Rented Merchandise Reducing Rate vs Reducing Term] was insightful.  However, while I agree with the premise that multiple rates and terms for comparable merchandise is a risky proposition for RTO, I also think I can make a pretty good case for different rates and terms for identical types of merchandise based on condition.  For example, a TV functions as a TV regardless of cosmetic blemishes on its exterior.  However, I think it reasonable to expect that a pristine used TV could command a slightly higher rate than one that shows wear and tear.  After all, our customers most often are at least contemplating the potential to eventually acquire ownership and therefore may be willing to pay a premium for the TV in better condition, even if it's just because it has a nicer appearance.  Similarly, a customer who has a defined short term need may jump at a better bargain even though the TV has a lower cosmetic appeal.  Don't misunderstand, I'm 100% opposed to multiple rates and terms for the same piece on the same price card!
    Ron D.

  • Helpful
    I can't give this a rating.  When I click on the printer friendly version it links me with the article on delinquency.
    RTO Online Response: Sorry about that...the link has been repaired. NOTE: The printer friendly versions are very popular. They are used for store meetings, training sessions etc. We will be happy to supply printable versions of any past RTO Online article. Contact us here
  • No Rating
    Very Refreshing Scott, I have been practicing this program for 12+ years. Good to know someone else understands itís merits. Just curious as to where you were exposed to this philosophy.
  • Better than War and Peace
    I am the person who introduced Scott to this delinquency program.  Itís great to see others learn and be successful. 
    Lindsey S.