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A lease agreement is a legally binding contract that outlines the obligations and rights of both the tenant and landlord. Without a lease agreement, landlords risk losing money, property damage liability, difficulty collecting rent, and more. Creating a lease agreement is easy and essential for avoiding disputes and resolving issues with tenants. Key elements of a lease agreement include property details, tenant and landlord information, and terms of the lease. A lease agreement serves as a landlord's first line of defense in protecting their property.