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A lease agreement is a legally binding contract that outlines the rights and obligations of both landlords and tenants. Having a lease is essential to avoid potential financial losses, including liability for property damage and difficulties in collecting unpaid rent. It serves as a protective measure for landlords, acting as the first line of defense in disputes. Key components of a lease agreement should include details about the property being rented, alongside the names and contact information of both parties. Understanding the basics of lease agreements will empower landlords to manage their rental properties effectively.