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                                                                     EXHIBIT 5.1


           [KAHN, KLEINMAN, YANOWITZ & ARNSON CO., L.P.A. LETTERHEAD]



                                  June 3, 1999



Rainbow Rentals, Inc.
3711 Starr Centre Drive
Canfield, Ohio 44406

Ladies and Gentlemen:

         In connection with the filing by Rainbow Rentals, Inc. (the "Company"),
with the Securities and Exchange Commission under the provisions of the
Securities Act of 1933, as amended (the "Securities Act"), of a Registration
Statement on Form S-8 (the "Registration Statement") with respect to a maximum
of 600,000 Common Shares, without par value (the "Shares") of the Company to be
issued under the Rainbow Rentals, Inc. 1998 Stock Option Plan (the "Plan"), we
have examined the following:

                  1. The Amended and Restated Articles of Incorporation and the
         Amended and Restated Code of Regulations of the Company, each as
         currently in effect;

                  2. The records relating to the organization of the Company and
         such other records of corporate proceedings and such other documents as
         we deemed it necessary to examine as a basis for the opinions
         hereinafter expressed;

                  3. The Registration Statement on Form S-8 (including Exhibits
         thereto); and

                  4. Copies of the Plan, and the records of the proceedings of
         the Board of Directors and shareholders of the Company relating to the
         adoption and approval thereof.

         Based upon that examination, we are of the opinion that:

                  A. The Company is a corporation duly organized and validly
         existing under the laws of the State of Ohio.


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Rainbow Rentals, Inc.
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June 3, 1999


                  B. The Shares have been duly authorized and, when issued and
         delivered pursuant to the Plan and in the manner contemplated by the
         Registration Statement, will be validly issued, fully paid, and
         non-assessable.

         We hereby consent to the filing of this Opinion as Exhibit 5.1 to the
Registration Statement and to the use of our name therein.

                              Very truly yours,


                              /s/ Kahn, Kleinman, Yanowitz & Arnson, Co., L.P.A.
                              --------------------------------------------------
                              KAHN, KLEINMAN, YANOWITZ & ARNSON CO., L.P.A.