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A lease agreement is essential for landlords to protect their property and avoid financial risks. It is a legally binding contract that outlines the obligations and rights of both the tenant and landlord. Without a lease agreement, you may be liable for property damage and have difficulty collecting unpaid rent. Creating a lease agreement is easy and helps prevent disputes with tenants. Key components of a lease agreement include the property to be rented, names and contact information of both parties, and terms and conditions of the rental agreement.