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A lease agreement is a crucial legal document that outlines the obligations and rights of both landlords and tenants, helping to prevent disputes and manage issues effectively. Without a lease, landlords risk losing significant money due to property damage, unpaid rent, and other liabilities. Creating a lease agreement is straightforward and is essential for protecting your investment as a landlord. Key components of a residential lease agreement should include details about the property, along with the names and contact information of the involved parties. Understanding these basics positions landlords to handle their responsibilities competently.