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This tutorial explains the importance of a lease agreement for landlords, highlighting that without one, they risk losing significant amounts of money and may face challenges such as property damage and difficulty collecting unpaid rent. A residential lease agreement is defined as a legally binding contract detailing the rights and obligations of both the tenant and landlord. It serves to prevent disputes and address issues effectively. The video also notes that a well-crafted lease is essential for protecting property rights. Key components of a lease agreement should include the property details, the names and contact information of involved parties, and other foundational terms.