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A lease agreement is a legally binding contract that outlines the rights and obligations of both landlords and tenants. It is crucial for landlords as it helps avoid disputes, manage property damage liability, and facilitates rent collection. Without a lease, landlords risk significant financial losses. Creating a lease agreement is straightforward, and understanding its basics can make you a confident landlord. Key components to include are the property being rented, names of the parties involved, and their contact information. A lease serves as the first line of defense for landlords in protecting their property and resolving issues.