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A lease agreement is a crucial, legally binding contract that outlines the rights and obligations of both landlords and tenants. Without one, landlords risk losing significant amounts of money due to property damage or difficulties in collecting unpaid rent. The agreement serves as a primary defense against disputes and helps resolve issues as they arise. Essential components of a lease agreement include the rental property's details, names and contact information of the involved parties, and other fundamental terms. Understanding and creating a lease agreement can help landlords manage their properties effectively and minimize potential risks.