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A lease agreement is a crucial legal contract outlining the rights and responsibilities of both landlords and tenants. Without it, landlords risk significant financial losses from property damage or difficulties in collecting unpaid rent. A well-structured lease helps prevent disputes and provides a framework for resolving issues. Essential components of a residential lease agreement include details about the property, the parties involved, and their responsibilities. Understanding these basics can help landlords effectively manage their properties and safeguard their interests.