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A lease agreement is a legally binding contract that outlines the rights and obligations of both tenants and landlords. Without one, landlords risk significant financial loss, issues with collecting unpaid rent, and liability for property damage. A well-crafted lease can prevent disputes and serve as a crucial tool for resolving problems that may arise. Essential elements to include in a lease agreement are the property details, names and contact information of signatories, and other basic terms. Understanding these fundamentals will empower landlords to manage their properties effectively and protect their interests.