Veterans Now Run the $11.8 Billion Rent-to-Own Industry They Were Once Warned About

The U.S. rent-to-own industry generates $11.8 billion in annual revenue, and a growing share of it now belongs to military veterans who run stores, own franchises and recruit fellow former service members, Military.com reports.

The shift is notable given the industry's history. Rent-to-own chains have long courted service members and veterans as customers — and drawn criticism for it. Nationwide players like Aaron's and Rent-A-Center still actively pursue military business. But today, veterans sit on the other side of the counter as franchisees and executives.

Jeff Lebakken is one of them. A Gulf War veteran and retired Army captain, he owns Lebakkens Rent to Own of Wisconsin, a second-generation family business founded in 1975 with a military focus.

How Does Rent-to-Own Actually Work?

According to the Association of Professional Organizations (APRO), rent-to-own stores let shoppers buy furniture and electronics over time without credit checks, down payments or even bank accounts. Customers pay "rent" on items for a set period, and they can stop paying and return the goods without penalty.

The catch: shoppers who do buy often pay double or triple the retail value, at effective interest rates above 100%.

That pricing structure has fueled the industry's mixed reputation. But as military members own more of these businesses, many are looking out for military customers with discounts and targeted campaigns — while also hiring veterans as a preferred talent pool.

Who Are the Veteran Owners?

Retired Marine Corps officer Mark Connelly entered the RTO industry after leaving the service in 1997.

"Because of my background in the military, we have always looked for great people coming out of the military. I have hired other officers from the military and also many enlisted service members," Connelly said in a statement to Military.com. "The training these veterans received in the military is a great fit for what we do in RTO. We have even hired a Navy SEAL!"

Gregg Skinner owns Leopard Mobility, a Dallas, Texas-based RTO electronics wholesaler that supplies RTO dealers. He credits his military background with teaching him discipline and structure — qualities he says transferred directly to running a business and hiring like-minded veterans.

Frank Rotert, a retired U.S. Navy veteran, is vice president and co-owner of Ace Rent To Own, which operates 24 locations across Nebraska. He joined as an account manager and became co-owner over a 31-year span.

"Many of the same qualities that are critical in the military are equally valuable in business leadership. In the Navy, every person is responsible for completing their mission and taking ownership of their actions," Rotert said in a statement to Military.com. "In the rent-to-own industry, those same principles have helped me manage employees, serve customers, and make sound business decisions."

He added: "Growing Ace Rent To Own from three stores to 24 locations required building strong teams, developing future leaders, and creating an environment where employees could succeed."

How Big Is the Market?

APRO's figures sketch the scale of the business:

• About $11.8 billion in annual U.S. revenue
• Roughly 5,445 retail stores nationwide
• More than 6.7 million households served each year
• Over 34,000 workers employed
• About 2.1 million customers with active rent-to-own agreements at any given time
• Approximately $1.9 billion invested annually by dealers in inventory purchases of essential household goods

The numbers explain why chains keep courting military customers despite the sector's pricing criticism. Households without credit or bank accounts — a segment that includes many junior service members — remain the industry's core market.

As more veterans take ownership, the industry's relationship with the military community is shifting from target audience to talent pipeline. If the hiring pattern at firms like Connelly's and Ace Rent To Own holds, veterans will keep moving from customers to shareholders in a market that shows no sign of shrinking.