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A lease agreement is a legally binding contract that outlines the rights and obligations of both landlords and tenants. Without one, landlords risk significant financial losses, including issues like property damage and difficulties in collecting unpaid rent. Creating a lease agreement is straightforward and essential for effective property management. It serves as a crucial tool for avoiding tenant disputes and resolving issues. Important elements to include in a lease agreement are the details of the property, the names and contact information of the parties involved, and other essential terms related to the rental arrangement. Overall, a lease agreement is a landlord’s first line of defense in protecting their property.